Passing the Baton

Have you ever made the decision to bring someone into your company in an executive leadership role or promoted someone within in your organization only to be dismayed that they failed miserably? If so, you are not alone. In fact, research suggests that regardless of the time and effort that went into that decision, the failure rate for “external” hires is high in the first two years, ranging from 40% to 60%. Internal promotions face similar odds.

Why is there such a high probability of failure? Did you overlook factors when making the choice of your leadership candidate? Did the individual misrepresent themselves? Or perhaps they had the “technical” skills for directing a team, but did not possess the necessary “people” skills to manage others. In many cases it is none of the above, but rather a lack of preparation on the part of upper management to create an environment that will ensure the new leader can successfully achieve organizational goals.

The consequences of an unsuccessful leadership transition go beyond your personal frustration and can have adverse implications for your entire company. Not only does a failed transition result in financial costs, but it is difficult to recover from the time lost on such a misstep. Just as critical, is the potential negative emotional impact that an ineffective decision can have on the culture of the company. Therefore, in order to ensure the sustainability of your company, you as a leader must assume some responsibility for this process.