Thought Experiment: What would happen if every other e-mail went to the wrong inbox? Or if Starbucks messed up every other order? Or if doctors made the wrong diagnosis 50% of the time?

A lot of dissatisfied customers and significant lawsuits, for a start.

Would it surprise you to learn that the same rate of failure exists in executive hiring?

According to Barry Deutsch of IMPACT Hiring Solutions, “roughly 56% of newly hired executives fail within two years of starting new jobs.”

Ray B. Williams cites an array of studies documenting failure rates of newly appointed and promoted executives:

• “Harvard Business School reported a 40% to 60% failure rate of U.S. executives in 2003;
• In a 2010 U.S. Conference Board report, only 36% of employees rated their companies’ leadership as good or excellent, down 50% from five years ago;
• A 2005 Corporate Executive Board Recruiting Roundtable survey found 89% of new U.S. executive hires indicated they did not have the optimum level of knowledge and skills to do their jobs;
• A Right Management Consultants’ 2005 report indicated that about 30% of new mangers and executives fail at their new jobs and leave within 18 months.”

As it turns out, some very real costs lurk behind the common fantasy that newly hired executives reliably hit the ground running.

ChiefExecutive.net details the costs associated with failed executive assimilation, including handsome severance packages, cost to recruit a replacement, and impact on stock value and market capitalization.

Considering what’s at stake, companies would do well to take additional precautions to protect their investment by ensuring their newly hired executives do not contribute to the above statistics.

To share some of those precautionary measures with you, I turned to friend, collaborator, and seasoned leadership development consultant Tom Fumarelli. In Tom’s 30+ years as a global operating executive –half of that time as a C-level executive- he managed public, private and family-owned businesses with high-performing teams in a variety of industries and dozens of countries. Trained at Wharton and Harvard, Tom honed his craft working as a CFO, COO and President in consumer goods, retail, banking, and other business sectors. Today, Tom puts his executive experience to work for clients in executive coaching, leadership development, and business consulting. As an executive coach, Tom helps companies’ newly hired executives assimilate into their positions, minimizes the chances of their failure, and works to protect his client’s recruitment effort and investment. In the six years that I have known Tom, he has been one of the toughest and best clients of my career. His high standards and integrity stepped up our partnership and set the foundation for many successful executive-level hires.

Roy Notowitz: Start by describing how you help companies.

Tom Fumarelli: Essentially, I work with business executives and owners to make sustainable change and achieve their personal best. Together, we focus on improving performance through collaboration, communication and accountability.

One element of my services, what you’ve asked me to discuss today, is ensuring that newly hired executives -at the VP-level and above- assimilate into their positions, understand corporate culture and expectations, and build and reinforce behaviors that will provide the greatest benefit to the company in a short period of time.

Most executives are expected to make their mark within the first 100 days, but if they do so in a manner that does not honor company culture or include key constituents in decisions, failure is possible for the executive, for his or her team, and for the company. This preventable situation happens more often than most companies choose to acknowledge.

It’s not unusual for ‘assimilation’ to be confused with ‘on-boarding’ or ‘indoctrination’, so let me take a moment to parse the distinction. On-boarding typically applies to the management level or below, and includes introducing the new-hire to HR policies, delivering an employee handbook, defining preferred methods of customer interaction, and sharing company vision, history, and culture. In a nutshell, on-boarding is a diffusion of information.

Successful assimilation –as a part of executive coaching- builds on that education by focusing on performance. The whole experience is a dynamic partnership between the executive being coached, the coach, and several key constituents in the company: the executive’s superior(s), key peers, and occasionally some subordinates.

To allow for adequate goal setting, regular feedback, and participation from a number of people, the process generally takes about six months. The goal is for the new executive to acquire a practical understanding of company culture and vision, familiarity with the idiosyncrasies of his or her peers’ work styles, and clear comprehension of the responsibilities and resources that pertain to the position.

I always find it amazing that companies spend so many resources on recruitment, but rarely invest the time or effort to ensure success once the executive is on board. Too much emphasis is placed on execution and tactics, while not enough attention is given to facilitating assimilation.

RN: At what point should a company consider involving an executive coach to help with assimilation?

TF: Coaching for a new executive is relevant and applicable in many instances. It is especially useful in three situations: when the executive assumes a position that has been held by another individual for a long time, when an executive moves into a newly created role, or when someone is brought in to run a privately owned business that has been previously managed by its owner/founder.

This new relationship between the executive and the company resembles a marriage in some respects. How many divorces would be prevented if newly wed couples began working with a marriage counselor from day one, instead of waiting for problems to develop? Moreover, think of what contributes to a successful marriage: communication and giving feedback when something is not right.

For companies, successful assimilation should start before the executive’s first day. Recruitment assessments -personality tests, interviews, evaluations, etc.- provide the ideal platform to design an assimilation program tailored to fit the unique match between the candidate’s personality and talents, and the company’s culture and needs. Involving an executive coach late in the recruitment process would reduce the rate of executive failures dramatically.

RN: What are some of the typical challenges that leaders may face when entering a new organization or new role within the current organization?

TF: Let’s look at the three situations I just mentioned.

Where a new executive is filling a position long held by another, there will inevitably be discrepancies in working styles, communication, personality, initiative, etc. The new arrangement’s success will pivot on clear expectations, regular feedback, and sustained participation from those key constituents I mentioned earlier: the superior(s), peers, and some relevant subordinates.
In cases where the executive takes on a newly created position, there’s a good chance of crossed messages and misunderstandings. What’s more, expectations of success and the role may change along the way. I’ve seen cases where decision-making authority isn’t clearly delineated; the new executive takes action with the best of intentions, gets his or her hand slapped, and feels undermined. This is all preventable.

When the new executive is brought in to fill a position previously occupied by the owner/founder –I call these companies ‘family-run businesses’- there are some more specific and delicate challenges. For some owner/founders, relinquishing control can be difficult. There may be a strong emotional attachment to the business, and he or she may scrutinize the new executive’s actions, decisions, and expenses with exacting attention. The new executive’s success depends on the owner/founder’s willingness to delegate and to let go emotionally. In many of these cases, it’s beneficial for the owner/founder to work with a coach independently.

If we think of these family businesses’ management culture as a cohesive organism, a newly introduced person enters like a foreign amoeba. He or she will have new ideas, and a new work style that will inevitably rock the boat. The organism will react by doing everything it can to combat that new entrant; not intentionally, but because it’s new, different, and strange. If the executive is made to face off against the family culture, he or she will lose every time.

RN: What are the most common errors associated with bringing on new executive talent?

TF: I attribute most executive failure to communication problems: inadequate feedback, inconsistent engagement, unclear expectations, etc. The key constituents don’t take the time to ensure that the new executive is in alignment with expectations of management or is familiar with the scope of the position’s decision-making authority. Introductory meetings aren’t enough. Sustained success takes real involvement over time, consistent feedback, and regular engagement.

Too often, new problems will surface for the new executive or the boss –behaviors or decisions that they don’t agree with- and they shrug it off, thinking “It’ll work itself out.” Or superiors may not do a good job sharing their vision, seemingly expecting the new hire to catch on by osmosis. Clear communication could prevent both of these problems.

RN: How do you help increase the likelihood of success?

TF: My clients prefer a results-oriented plan, primarily so that the expectations for the new executive are clear, but also so that they know what they’re getting from me. Decision makers appreciate the structure this lends to the process. It’s not just a ‘feel good’ exercise. Typically, I’ll start with a 360º feedback survey; which includes the new executive, pertinent superiors and peers, and occasionally select subordinates.

In some cases, I’ll facilitate three-way conversations between the new executive, myself –acting as executive coach-, and the boss. Together, we’ll answer a host of simple, essential questions, including: ‘How do you like to work?’, ‘What does success look like?’, ‘What’s important?’, ‘What’s not important?’, ‘What do you need and expect from me?’ and ‘What tools are available?’

After collecting data from these conversations, I’ll encourage –sometimes insist on- the respondents’ participation in the development of an executive coaching action plan. Increasing participation and getting key constituents’ skin in the game greatly improves the likelihood of the new executive’s success. Once that plan is in place, my responsibilities shift to ongoing monitoring and regularly soliciting and facilitating feedback. The nature of this process typically demands an engagement of about six months, sometimes longer. After that point, at my client’s request, I’ll check back every quarter.

The trick with executive coaching is to adapt to the unique dynamic of the individual and the company: establish clear lines of communication, guidelines, acceptable actions, and address the other topics I’ve discussed earlier. Everyone involved should take a step back for an objective look, share goals and tools, and explain what he or she needs to be successful. These are essential questions for any new relationship, but few organizations make the effort.

RN: What should trigger someone to consider using an executive coach to help with assimilation?

TF: Mid- to large-cap businesses tend to have a clearly structured process with enough resources to ensure that new hires get the attention they need to be successful. It’s the smaller-cap and family businesses -which were responsible for 64% of new jobs created in the US during the last two decades- that may not have such a program in place. They may overlook the importance of investing in the executive’s assimilation because they’re starry eyed with their new hire.

Since small business represents 99.7% of all businesses in the US today, this group stands to gain the most -and provide the most benefit- from enlisting the services of an executive coach.

RN: What should people look for in an executive coach that will help smooth the assimilation process?

TF: The people who are better at this level of coaching are those who have been senior-level executives themselves. Experiencing assimilation and seeing the difference between good execution and poor execution informs a level of attention to the big picture and the small details that cannot be synthesized from theory alone. Such a wealth of practical experience provides structure, measurable deliverables, and follow-through; all important ingredients for successful executive assimilation.

Personally, I find that my track record as an executive helps me to understand my clients’ objectives with a big-picture perspective, and retain sensitivity to the projects and pressures of each new-hire’s position.

RN: What other services do you provide and how can someone contact you?

TF: I describe what I do as a three-legged stool. I offer Leadership Development Consulting (e.g. training workshops, team and partnership interventions), Executive Coaching –a part of which we’ve discussed here-, and Business Consulting (tactics concerning strategy, operations, and management).

Each of those legs supports the other two. My business consulting keeps me fresh on contemporary issues. I take the successes and lessons from my coaching clients and share those concepts on a confidential basis with others in similar circumstances.

In general, I approach problems by blending the business perspective with a thorough look at the unique challenges and styles of the organization and its individual contributors. Because no two clients have the same strengths and challenges, each of my solutions must be tailored to fit the situation. The beauty is in honoring the diversity of each individual and entity.

I can be reached through fumarelli.com

 Please let us know your thoughts on this topic.

1. Have you witnessed executive failure that could have been prevented with more investment in assimilation? If so, what did you learn from the experience?

Have you ever worked with an executive coach? What did you learn from the experience? What would you add to Tom Fumarelli

Resigned to Resign

The moment of truth is often not when the candidate accepts your offer, but when they actually go to resign.

 As recruiters’, we often pat ourselves on the back when a candidate accepts a job offer and agrees to make the leap to a new company. However, any recruiter who has been around the block a few times knows that there remains the slim, but all too possible chance that the ‘perfect fit’ might be lured back to his or her old team. (Oh, the audacity!) Therefore, our job isn’t done until that recruit –that employee-yet-to-be- actually shows up for his or her first day of work.

The dynamics of change… have changed.

Since the economy has maintained an ‘employer’s market’ for so long, you might think that companies would make resignations smooth and hassle-free. As usual, reality is more complicated.

Because many employees have been doing more work with less pay, they’re attentively awaiting the chance to jump ship. Consequently, some companies are suffering uncomfortable employee losses, and are reacting with more aggressive efforts to retain top talent intent on resigning. As with most reactions, this is an inefficient response; if retention were truly a goal, it would not have become an issue. Questions of efficiency aside, reactive retention efforts can work if the resigning employee is surprised by a sudden showering of positive attention.  (Never mind that most of these starry-eyed folks end up leaving the company within a year, anyway.)

Relaxing before the recruitment race is truly over exposes you to unnecessary risk of failure. Aside from the time and energy wasted on an unsuccessful recruitment, current staff –already busy with their own responsibilities- may be covering the vacant position, and expecting a new hire to pick up the slack soon. To mitigate the risk of losing the top candidate at the moment of truth, recruiters should help him or her prepare to give notice.

Bolstering the resolution to resign.

• Let recruits know that resignation can be harder than they expect, but without making the whole event seem more dramatic than it needs to be.  
• Be a resource for them by offering 3^rd party information on resigning.
• If needed, offer to help them develop 2-3 concise talking points.
• Assure them that they will be fine if they just stick to their ‘script.’
• Tactfully reinforce their main motivations for making a move without being too pushy or negative about their current company.
• Reiterate why you’re excited about them joining your company.

With a little extra encouragement and preparation, candidates can have a happy ending, and a fresh start.  The best result is the most anticlimactic: the candidate leaves on good terms, cuts ties cleanly, and moves into the new position without any baggage.  Preparing for the counter-offer mitigates a considerable risk for the hiring manager, improves the likelihood of a successful switch, and boosts your chances of earning that aforementioned caloric sin.

Additional resources:

For tips you can share with candidates prior to them having to give notice, check out my post “Quit Your Job with Grace.” on how to make a graceful exit.

For tips on getting the candidate to accept your offer, read my post “Deal or No Deal: Getting Top Talent to Accept Your Offer.”

Please share your thoughts on this topic.

-      Have you heard interesting stories about key employees giving notice?

-      What is the best way to protect against a counter offer?

>>> About Notogroup: Notogroup is an executive search and talent consulting firm. We have a singular focus on providing the most comprehensive executive recruiting service so that our clients can be assured that each and every hire is a successful one.  For more information, Contact Roy Notowitz.

We have all fantasized about it at one time or another.

We accept a new job, set sights on the future, and compose a few choice words to share with a frustrating co-worker, boss, or client when we are ready to announce our departure. In reality, most of us (with a few notable exceptions) know that burning bridges is dangerous business.

Although it has been an ‘employer’s market’ for some time, you might be surprised when your current employer reacts more aggressively to your resignation than you were expecting. Resignations can lower morale, reflect poorly on the immediate superior, and disrupt productivity. It is no surprise that companies would react with the following retention tactics to prevent (or at least stall) your departure.

Reactive Retention Tactics: The Good, The Bad, and The Ugly.

The Ugly: the guilt trip is an effective first line of defense since superiors can rightly exclaim, “You can’t leave now! We need you!” Indeed, some folks may succumb to this dull hook of guilt.

The Bad: extracting reasons for leaving or information about the new employer. This gives the current boss ammunition to sow the seeds of doubt; “Oh, I have heard ‘bad things’ about that company.” We are patently trepidatious with change, and the economic turmoil has not done our confidence any favors.

The Good: “We are poised for growth and you are a key player on our team. You have unlimited potential here. If it is a higher salary/position you want, let’s see what we can work out…” I have seen companies double salaries and create new positions just to retain top talent.

Even the most burnt out and resolute are susceptible to these reactive ‘retention tactics’.

Giving notice can be harder than you expect.

There is no good time for companies to lose an employee unexpectedly. For employers, it is better to scramble for retention reactively, prepare for a transition, and then ‘let go’ when it suits them. For candidates, a ‘retention raise’ or promotion tends to attract more scrutiny, and more stringent accountability.

Announcing a departure irreversibly changes relationship dynamics and brands you as a liability. What’s more, over 50% of people who accept counter-offers end up leaving or getting fired within twelve months.* So, once you have let the cat out of the bag about your decision to leave, there is no going back. Before handing in your notice, consider a little preparation.

Tips for making a graceful exit.

Keep it positive

It was true when we were children, and it is still true today: ‘If you do not have anything nice to say, do not say anything at all.’ A job change is a personal choice, and it is okay to withhold additional reasons. Prepare phrases such as: “I have really appreciated the opportunity to work here. However, I am ready for a new challenge.” and “I am excited to develop my career and expand my breadth of experience elsewhere.”

Keep it professional.

Co-workers may want more information in an effort to understand your decision to resign. This is an opportunity to voice pent-up frustrations, and, therefore, is best left alone. Your reputation -a hard-earned and highly valuable career asset- can be tarnished by such spontaneous, unprofessional choices. Develop talking points ahead of time, stick to that ‘script’ at the moment of truth, and you will be fine.

Facilitate the transition.

Go the extra mile to ensure a smooth transition. Wrap up loose ends, provide a solid summary of all work and projects in process, and help your successor hit the ground running. Leaving a mess could tarnish an otherwise gleaming track record.

It is cliché, but well worth repeating; people are more connected than ever. Social Media amplifies gossip. Leaving a sour taste with an ex-employer could come back to haunt your palate. At the executive level, and in some industries, it is a small world. For that matter…

Stay connected with co-workers.

Maintaining relationships is key to long-term success. Who knows whom you will want to connect with in the future. As mentioned above, easing the transition for co-workers left behind shows initiative, consideration, and professionalism. Such demonstrations of integrity will keep the door open with your chosen contacts. You may end up working with old co-workers in the future, and your considerate actions will be remembered much longer than a ‘few choice words’.

Please share your thoughts.

What has been your experience giving or receiving notice?

Have you ever taken a counter offer and if so, was it a good choice or a bad choice?

Resources.

Bill Radin expands on the ‘Good, Bad, and Ugly’ tactics employers use to prevent departures in “Your Resignation: Beware the Retaliatory Strike.”

Douglas Welch “The Right Way to Resign.” – More pointers on leaving gracefully,

The Riley Guide offers a great selection of articles on job offers.

* Percentage of employees who accept counter offers, but leave within one year, voluntarily or otherwise:

89% – http://www.recruitersonthenet.com/recruiters-counter.htm

50-80% – http://www.mriscmadison.com/u/counteroffer.pdf

60% – http://www.ehow.com/how_4591361_respond-counter-offer.html

Do you know someone who would be interested in a 10 minute “crash course” on basic job search strategy and tactics? If so, this podcast offers plain and simple advice gleaned from my years of experience as an executive search consultant working for top companies nationwide.  

In this interview given by Candie Fisher, I am speaking to her business class with the objective to provide some helpful “insider” insight into the hiring process and decision making. It is common knowledge that most jobs are not advertised, so we discussed job search preparation, the importance and advantages of networking, when and how to work with recruiters, key points when putting your resume together and some interview etiquette. The podcast is brief, but informative and chock full of practical job search advice. It is an appetizeer and conversation starter, so please feel free to comment or provide additional insight based on your knowledge and experiences.   

Having trouble hearing the podcast? Download Quicktime for free here:

http://www.apple.com/quicktime/download/

A recent job search success survey conducted by Notogroup was given to 75 professionals across all job disciplines. Approximately half of those surveyed were unemployed and the remaining half had successfully landed a new job in the past 24 months.  68% of survey participants were professionals at the senior to executive-level.*

As you might expect, a successful job search strategy is still grounded in networking and relationship building activities, but with today’s ever-changing technology job seekers need to stand out more than ever. Internet job boards and recruiter sites have taken the place of the traditional newspaper employment search and memberships with social networking sites have become almost a necessity. Not only are jobs scarce but the competition is stiff, and good old-fashioned person-to-person connections remain the most effective way to get noticed.

The 70% layoff rate amongst those unemployed clearly reflects the state of the current U.S. economy. Those who voluntarily left their positions listed poor management, deficient culture fit and lack of challenge as the basis for their resignation. Of those currently employed, two-thirds of employed professionals surveyed are currently searching for a better position. This data may be an indication of lower morale, decreasing engagement, or general burnout.  In a recent article, Jessica Dickler from CNN Money concurred, “Many workers lucky enough to have survived the ax are still feeling unhappy and unmotivated at work…employees saddled with additional workloads for less pay are becoming increasingly dissatisfied with their current position – or just plain burnt out.”

With a 90% job search rate of those surveyed, creative job search strategies are more important than ever, yet only half of those surveyed have developed any sort of formal job search strategy.  A majority of the respondents actively search networking sites such as LinkedIn, Twitter, and Facebook. A small 7% actively maintain blogs that relate to their professional interests and activities, and 23% have paid subscriptions with career resource portals such as the Ladders.  A third of the respondents have considered paying to have their résumé rewritten by a professional and 5% have hired job search coaching or outplacement agencies.

Of those recently hired, 50% found their jobs through a referral by a friend or a colleague and 37% found their jobs through a family member or friend who already worked at the company.

Proactive search methods are great ways for getting noticed but the key to landing a lasting career is through establishing meaningful relationships. Using traditional introductions through friends and family and cold calls to hiring managers are still great starting points, but with today’s competitive job market, it is essential to engage with prospects and networking contacts on a “real” level.  Establishing rapport through a friendship connection and sharing personal interests that relate to the company may be what makes you stand out in the crowd. 85% of those surveyed stated that they would take the time to meet with other professionals if they sensed sincerity and mutual benefit.

The goal of networking is simply to build and maintain meaningful relationships and it is the quality of the relationships you build that matters as much as the quantity.  The more trust and professional credibility you build with others, the more likely they are to advocate, recommend or want to help you. Conversely, it is just as important for you to “pay it forward” and invest in the success of others within your network. 

Only you can set yourself up for success. Prepare for meaningful conversations by being ready to listen and ask questions. Rather than planning on how to talk about yourself and your capabilities, take time to learn about the person you are meeting with and the industry and company for which they represent. Researching the company’s goals and potential needs will inform your conversation and create a more useful two way dialogue. It will also help you determine if the company is the right fit for your career goals and professional aspirations. If you are genuinely interested in the company and their values it will show through naturally if you are well prepared and thoughtful in your dialogue. Amazing things can happen when you approach every connection with a sincere interest in learning, understanding, and giving rather than with the standard approach of “I need a job, do you have one?”

*Thanks to all of the “Job Search Success Survey” participants.

>>> About Notogroup: Notogroup is an executive search and talent consulting firm. We have a singular focus on providing the most comprehensive executive recruiting service so that our clients can be assured that each and every hire is a successful one.

* Employed professionals who have been hired in the past 24 months
* Unemployed job seekers who are currently seeking employment

How long will it take?
* The survey takes between 5 minutes and 10 minutes to complete.

Why should I take time to do this?
* As a participant, you will be providing helpful information that will be used to create a dynamic job search seminar.
* The first 100 survey participants will be ENTERED INTO A DRAWING for a $199.00 Apple Store gift certificate.
* We will share interesting findings and helpful insight with participants and the subscribers of this blog

Survey Link:  https://www.surveymonkey.com/s.aspx?sm=9YpO3Te7MUhN7KVtzMwcrA_3d_3d

Thank you for your participation in this survey!