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The main
reason why newly hired outside executives have such an
abysmal failure rate (40 percent, according to one
study) is poor acculturation: They don’t adapt well to
the new company’s ways of doing things. In fact, some
three-quarters of 53 senior human-resources managers I
surveyed cited poor cultural fit as the driver for
onboarding failures.
Acculturation tends to get little attention from
employers because it’s a difficult problem to quantify.
But my research indicates that companies can do a lot to
help senior-level hires avoid cultural missteps. In
particular, there are some key areas where they can help
hires find the right approach.
ALTERATION VS. ASSIMILATION
Many
newly hired executives are set up to fail because
they’ve been led to believe they have more of a mandate
for change than they really do. Robert Nardelli, who
abruptly resigned as chairman and CEO of Home Depot
earlier this year, was a manufacturing guy from the
top-down culture of General Electric who had been hired
into the decentralized culture of Home Depot, in part to
instill discipline (the alteration expectation). But he
didn’t know how to balance that goal with maintaining
the best elements of the company’s entrepreneurial
spirit (failure to assimilate).
PROCESS
VS. RELATIONSHIPS
In some
organizational cultures, it’s important for a newly
hired executive to know the right people to advance his
or her agenda. In others, it’s all about understanding
proper procedure.
At both
GE and Johnson & Johnson, goals are set via rigorous
planning processes. But the companies differ on
implementation, with GE executives going through
specified procedures and J&J leaders relying more on
relationships. Several leaders I’ve observed have moved
from GE to Johnson & Johnson, and I’ve noticed that they
tend to get themselves into trouble with implementation:
They wrongly assume that because the companies have
similar goal-setting processes, they have parallel
corporate cultures as well.
TEAM
PLAYERS VS. STARS
New
leaders always have to get early wins to build momentum.
But the way they go about it is just as important as the
successes themselves. The right approach depends on the
company; some have a collective culture, while others
reward stars for getting things done.
There
are other cultural dynamics companies can flag for new
executive-level hires. Some firms have what I call a
strong corporate immune system—they attack anything that
doesn’t “belong”—while others are more welcoming. Some
companies see meetings as places for dialogue on tough
issues; others view meetings as places for ratifying
decisions that have been made in premeeting discussions.
Some manage conflict openly; others do it covertly or
not at all. Some put no limits on how executives may
achieve results; others are more restrictive.
A
company can assist its newly hired executives by
evaluating all those aspects of its organizational
culture and then being explicit about them and about the
behaviors it expects. This information should be
incorporated into any “Getting Things Done at Our
Company” material that may be handed out to new
executive hires.
It’s
also important for companies to gather insights from
former outsiders who have assimilated successfully;
managers who have grown up in an organization often
don’t realize they even have a culture. I have seen
failure rates decline to less than 10 percent at client
organizations as a result of companies’ use of
systematic acculturation and transition acceleration.
Whatever
the program, the new hire should be brought into it
rapidly, before he or she has a chance to make the
gaffes that might undermine a brilliant career at the
new company.
Michael
D. Watkins is the cofounder of Genesis Advisers, a
leadership development consultancy based in
Newton,
Massachusetts,
and the author of Shaping the Game: The New Leader’s
Guide to Effective Negotiating. |