FAILURE TO LAUNCH:
WHY COMPANIES NEED EXECUTIVE ONBOARDING
Employee onboarding is beginning to receive the attention its due, as more companies are focused on overall
talent management and performance to drive business success. In the tightening labor market, employers
are acutely aware of the importance of onboarding the top talent they invested so heavily in finding. However,
when it comes to orienting key leadership and executives, it seems most organizations simply assume the
higher the level of talent, the less the need for effective onboarding programs. Not only is this assumption
wrong, but it is arguably more critical to organizational success to invest in effective onboarding of their key
executives.
Credit: startupowl.com
Harvard Business School recently reported a 40 to 60 percent failure rate of U.S. executives. Another report
by Right Management Consultants found about 30 percent of new managers and executives fail at their new
jobs and leave within 18 months. And, businesses are paying dearly for the loss. It’s estimated that the
financial cost of exiting a new executive within 18 months of hire is roughly three times the leader’s first year
salary – never mind the cost of lost productivity.
Companies with strong onboarding programs see 2.5 times the profit growth and 1.9 times the profit
margin than those that don’t.
- The Boston Consulting Group
Bottom line is turnover at even the mid-manager level can cost a company millions. Even if new leaders
remain in their position, many never reach their full potential within the organization if not onboarded
effectively.
SO WHAT’S MISSING FROM TODAY’S EXECUTIVE ONBOARDING PROGRAMS?
Shortfalls in most companies’ approach to executive onboarding fall within a few, broad categories:
•
Too short, and too late: Most executive
onboarding programs begin the first day the
new leader joins the company, and end as
early as 30 days later.
•
Focused on tangible items, not the
intangibles: Typical onboarding strategies
focus on the basics such as, desk supplies,
security passes, equipment and protocols
and less so on the vital intangibles including,
agreement on key objectives, assimilation
with the culture, and insight into team
members’ expectations and leadership style.
•
Generic, one-size-fits-all approach: Many
onboarding programs stick to standard
elements that all executives experience,
regardless of their specific role or function,
or without taking into consideration the
executive’s
specific
competencies,
behaviors, or values.
•
Absence of a detailed, agreed-upon plan:
Often, organizations rely too heavily on the
fact that executives are hired because they
“know what they’re doing.” Yet, a lack of
clear, agreed-upon expectations for
performance and a definition of success in
the role can quickly lead to failure.
•
Failure to deliver: Anxiety, fear, or distrust
among subordinates are often not
addressed as part of the executive
onboarding process, leading to a failure to
build a high-performance team or to deliver
results fast enough.
•
Lack of stakeholder relationships: Few
executive onboarding programs focus
enough on helping the new executive
establish key relationships up, across, and
down within the organization.
THE BIGGEST DERAILER OF EXECUTIVE ONBOARDING PROGRAMS
Based on decades of experience crafting and executing executive onboarding programs and helping effectively
orient hundreds of executives to new roles, one crucial aspect of assimilation is underestimated by most
companies – equipping the new executive with the tools needed to manage their leadership behavior, and quickly
establish openness and trust among team members.
What do we mean by this? Simply put, first impressions mean everything.
Everything communicates – what a new leader says, doesn’t say, does, and doesn’t do. Human beings are biased,
and once they have formed an initial impression, they often spend the rest of their time looking for evidence to
support their point of view. Subordinates and peers alike watch a new executive intently, asking the same
question “what does this mean for me?” In the absence of receiving a clear message directed to them, they often
imagine the worst.
Without addressing this aspect, new executives are set up for failure. On the other hand, companies can ensure
high performance and retention by investing in an effective onboarding approach that includes pre-boarding
processes such as, assessments of the executive and direct reports, conducting a new leader assimilation,
assigning a mentor to help immerse the executive into the culture and an executive coach who understands the
culture.
EMERGING BEST PRACTICES FOR EXECUTIVE ONBOARDING PROGRAMS
The key to effective executive onboarding is a more integrated, longer process that begins before the first day.
By providing detailed steps throughout the executives’ first 30, 60, 90 days and year on the job, onboarding
assists new executives learn the attitudes, protocols, skills and behaviors required to operate effectively and
successfully within an organization.
I.
Importance of Pre-Boarding
Best-in-class onboarding programs begin well before a new hire’s first day. The best way to ensure a new
executive is set up for success from day one is to prepare ahead of time for their arrival. This requires equipping
new executives with the tools necessary to begin operating within the organization, and to begin laying the
foundation for assimilation into the culture, processes, and understanding internal stakeholders they will rely
upon. Pre-boarding should include:
•
Readying the tangibles: Provide the executive
any required applications, forms, etc. that pertain
to the organization such as, benefit information,
employee manuals, and others. Be sure the
workspace is ready with the right equipment,
phone, nameplates, business cards, and a
welcome gift is a nice gesture as well.
•
Information to Navigate the Organization: Develop
a briefing book to educate the executive about each
department, their structure, mission and relevant
background. Include an organizational chart with
employee contact information, as well as a list of
acronyms, payroll calendar, and even a map of the
building.
•
Provide Background Information on Key
Stakeholders: To help the new executive begin to
familiarize himself or herself, provide bios,
resumes and assessment data or insight for all
direct reports. Develop a stakeholder map to
include all relevant stakeholders and executives
with contact information and provide this to the
new executive on the first day.
•
Assign Executive Sponsor and Mentor/Executive
Coach: Assigning a sponsor accelerates the new
executives’ ability to quickly address and properly
deal with early confusing issues. Questions about
“normal protocol” in the organization, finding the
right people to go for information, correct
procedures, and learning what is “right” and “wrong”
should be easily answered by a sponsor. An
executive coach helps the executive progress in his
or her current positions, as well as with individual
development and career goals.
II. Gain Agreement Among Stakeholders Regarding Role, Definition of Success
The onboarding process should focus early on clearly defining expectations for the role, identifying objectives,
and introductions to all relevant stakeholders. Many companies overlook this aspect, causing a lack of clarity in
expectations for performance; this is one of the fastest paths to failure for even the most talented executives.
•
Create and review a 30-60-90 day plan. Set expectations and milestones for the executive to achieve
within the first three months in their position.
•
Finalize the executive’s performance objectives and review.
•
Executive Development Plan (EDP). Ask the executive to create an EDP with his or her manager and
solicit input from coach/mentor.
III. Build Effective Working Relationships with Key Internal Stakeholders
One of the biggest mistakes an employer can make in onboarding executives is to underestimate the importance
of developing productive, healthy relationships between the executive and his or her direct reports right from
the start. Forging strong relationships early helps alleviate anxiety among subordinates, set expectations, and
establish two-way communication channels.
A leader assimilation program is a proven, effective approach to solidify strong, productive relationships between
a new executive and his/her team members. The program significantly reduces the time required for new
executives and their team to understand one another’s working styles, expectations and business concerns, and
begins to establish a climate of openness and trust as a team. It includes:
•
Conduct a Team Meeting: A qualified executive coach conducts a team meeting, without the new executive
present to gather candid feedback, concerns, fears, and questions they may have of the new executive, as
well as collect insight for the new executive into the group as a whole, how they operate, and their
perspectives on potential challenges for him/her, and more.
•
Post-Meeting Debrief with Executive: Following the meeting, the executive coach meets with the new
executive one-on-one to deliver the feedback received, advise him/her on how to approach potential
roadblocks, and how to address the questions the team has of him/her.
•
Executive Meets with Staff to Provide Feedback: The new executive, equipped with the issues and
questions the team has of him/her, meets with the team to provide answers, discuss expectations, and
create any necessary action items as a team.
IV. Rely Upon Sponsor and Executive Coach to Adjust Behavioral Styles, Achieve
Performance and Development Objectives
Utilizing a coach and mentor throughout the onboarding process can truly optimize the experience for everyone
involved. From helping an executive adjust their work and leadership style as needed, to providing individual
development strategies, executive coaches and sponsors are key to the process.
•
Schedule Ongoing, Formal Feedback Sessions with Executive Coach: Regular check-ins with an executive
coach should be scheduled and conducted at key points throughout the first year.
•
Utilize Ongoing Leadership Development Assessments: The best-in-class onboarding programs for
executives rely upon ongoing development assessments to help the executive adapt to their position and
workplace. Using these tools gives the executive data-driven, tangible strategies to monitor progress and
identify specific areas for development or adjustments.
•
Create an Action Plan: New executives should develop an action plan to achieve performance objectives
and to identify professional development opportunities. The plan should include the necessary resources,
tools and time to successfully accomplish tasks within the plan. Review the plan with the executive to
provide feedback, or alignment on specific goals.
V. Formulate Roadmap for Long-Term Success
Central to the success of executive onboarding is gaining frequent feedback, and creating a roadmap for
continued success after the onboarding process.
•
Conduct Formal Feedback Sessions: Meetings
between the new executive and their boss should be
scheduled to get feedback on his or her experience
after 30 days, 60 days, three months, six months,
nine months and a year.
•
Conduct 360° Assessment: Executive should
complete a leadership assessment process to
gain feedback on performance among key
stakeholders and staff, and should take place
around six months in the new position.
•
Revisit the Executive Development Plan: Assess
progress on the plan, and on professional
development goals.
•
Develop a Long-Term Roadmap: Utilizing the
data, insight and feedback from ongoing
assessments, and progress on EDP, executives
should develop a roadmap to ensure long term
success beyond their first year.
CONCLUSION
After investing heavily in recruiting and hiring a new executive, it simply makes business sense to invest equally
robust efforts into an effective onboarding process. Top performing organizations use assessments as a
fundamental piece of the onboarding process – critical to making better hiring decisions and improving post-hire
productivity, engagement and career progression. Equally important, are programs and tools that establish early
trust and openness among the constituents a new executive will rely on to achieve results. Executive onboarding
should be an ongoing process of learning that helps the new leader – and the organization as a whole – succeed
in the long term.
Contact XBInsight to learn more about our executive onboarding program, and why the world’s leading brands
choose us as their talent management partner. Visit us as www.xbinsight.com or call us at 401.682.2859.