Since the appearance of COVID, I’ve had opportunities to work with executives on key organizational change questions, all of which have been driven by the goal of making their organizations leaner, more responsive, and resilient for what lies ahead. In some cases, they are working to create stronger horizontal engagement along lines of value for their clients. In others, they are looking at creating a “scout” team to pursue a new customer segment.
When contemplating these changes, the most focus is placed on the design of the role and the skill set needed. We then go to work finding the best combination of knowledge, attitudes, skills, and habits by reviewing internal and external talent.
There is one aspect of this work that frequently comes back to bite firms, and it’s exceedingly hard for the internal team to see. It is the hidden momentum of cultural expectations that are deeply embedded in enterprises that have history and scale. As an analogy, there is a game that is played in swimming pools where people all walk in the same direction in a circle to create a whirlpool stream. Then someone calls reverse and everyone turns around. Predictably, they all have a very hard time moving in the reverse direction of the flow.
Establishing a new position is like that in most firms. For a short time, through sheer will, a new candidate can “pull” against the whirlpool of culture, but frequently, the powerful cultural current wins. Six months in, and we have a new individual creating similar results – clearly, not what we set out to accomplish.
If you are asked to take on one of these roles, or are part of the team architecting the diagnostic notes, below will help you find a path to real results – not simply a change based on short-term charisma.
How to Help Your New Leaders Succeed
In my coaching work, I explain to these leaders that the success of these changes begins well before the org change is announced. Working with these leaders, we are able to understand more clearly the full scope of the culture, expectations, and pressures that our fresh executive will face.
During these sessions, we pull out our digital equivalent of a yellow pad and make three columns: before, during, and after. This process allows us to have a candid conversation and consider not just the psychology of the proposed changes, but the on-the-ground behaviors that will most positively impact the role. Secondly, it can point the way to necessary changes in processes and technology that have a strong undertow on the direction of the organization.
Diagnostic Questions
How Do We Expect Decision Making to Look Different?
Every firm has a strongly ingrained process for decision making, even if it has never been written down and objectively studied. Because firms become the cumulative sum of the decisions that it makes, this is a key place to spend some time before considering the “who” of the leadership change.
Identifying who has input, who makes the decision, and (ultimately) who approves it, provides valuable insights into the role of your new leader. Some firms have a quick cadence of decision making, while some are painfully slow and deliberate. By examining the skills and capabilities of the people associated with the process, you can make a much better match.
Frequently there are unspoken expectations for how the new leader will “unlock” key subject matter experts and get better results. It works much better if those skills are pulled into the position design.
How Might the Next Review Meeting Look?
Many times a firm wants different results, but greatly underestimates the old adage of “you get what you measure.” Particularly in matrixed firms, the agenda of key review meetings establish substantial expectations of what is managed and measured. When we take a fresh look at these past meetings and ask how this is used to measure value creation for the client, we see many elements that are artifacts from years ago.
By asking what new ground needs to be covered, we can pursue leaders who have a track record of bringing those insights from past experiences or unlocking them with a partner.
A great way to get this discussion rolling is “if your best client was in the room, what would they hope you were going to focus on?”
Does the Reward Package Need To Be Changed?
You would be surprised how many times the team fails to look at the compensation structure for fresh executives. The default packages and templates will almost always result in a cookie cutter performance package. This is another spot where you get exactly what you signal. If you want to have changed behavior, it’s important to think through how you will be able to evaluate it and give differential rewards for the successful leader.
Some Notes on in Place Plans
Many firms have established leadership pipeline strategies that are reviewed annually. It’s important to review those now since virtually every company’s context has changed since the pandemic. Firms are leveraging up on adaptivity and nimbleness to progress through what the world has to challenge us with now. Matches that looked good last year may not play out as you were expecting.
If you’d like to talk about how a coaching, advisory or consultative approach could help you create critical thinking, better decision making and more effective action taking, please reach out to scott@scottpropp.com or put a 20-minute appointment on the books using this link.
Related posts you can benefit from…
