As many as one third of senior-level people experience severe performance problems and "jump the tracks." Executive derailment generally results from different learning curves and different stumbling blocks. Performance may also be affected by many factors including off-the-job pressures such as family problems. Regardless of the cause of an executive's derailment, CEOs or boards often resort to termination as the easiest solution and may block consideration of meaningful alternatives. Executives represent part of the key talent of an organization and leadership core. As a consequence, valuing and nurturing talent, whenever possible, has both direct and indirect positive consequences for the organization.
When the problem is poor performance, the best way of avoiding these problems recurring is a turnaround program.
Executive Advisors discover the nature and severity of the executive derailment and design programs to develop specific competencies. Our consultants can transform the individual and management team into master engineers of a recovery. Our turnaround programs include some or all of these steps:
- Obtain broad and deep feedback from the individual and his or her peers, superiors, and direct reports.
- Assess that feedback to develop an evaluation of needed competencies and reduce obstacles.
- Retrain or coach the individual accordingly.
- Create an environment that supports the required changes.
To insure the integration of the necessary skills, we advise making the findings of the turnaround program an ongoing part of the individual's development plan; thus, reinforcing success and avoiding future derailment.
Termination, while sometimes necessary, inevitably harms the company as well as the individual. If this alternative is necessary, we can help you minimize the direct and indirect adverse consequences, which may include the following:
- Loss of the executive's knowledge and experience, particularly the organization's history.
- Making that knowledge and experience available to competitors.
- Organizational disruption, such as increased workload on peers, client loyalty disruption, etc.
- The expenses of termination and replacement.
- The expense and disruption of defending a lawsuit for improper termination.
- Demoralization and anxiety of other staff, particularly among supporters of the terminated executive.
When other employees see the investment the company is willing to make to retain and develop an individual, morale typically rises. Rather than experiencing disruption and possible defections, the company benefits from increased loyalty. By valuing key people and getting them back on track, a company optimizes its greatest asset.