Category Archives: Executive Transition

Posts in this category relate to best practices and lessons learned when a senior executive transitions into a new leadership role. Posts are address perspective of entering executive, her/his boss, and her/his direct reports.

Paying Fair: Four paths to fair pay and succession for private venture executives.

Synthetic Equity Cover - Paths to fair pay and successionBackground

Public company equity-based pay practices, such as stock, restricted stock, and employee stock options are often a poor fit for private companies committed to reward leaders for performance and growth and to motivate leadership and capital succession.

Equity based programs that make sense and work well in a public company come with many ills for private companies: they can be costly, tax-inefficient, static, ineffective, and sometimes downright unfair. In the worst case, equity pay practices can derail the owners’ plans for growth and succession.

Dynamic synthetic equity presents a more tailored solution for private companies interested in leadership and capital succession. Restricted stock and employee stock options often distort outcomes for private companies. Consider that:

  • The underlying stock price in a private company gyrates as owners enter and exit from, for example, a living or a death buyout or even a recapitalization. Stock price can jump 50% – unjustly rewarding the owners of true equity awards.

Continue reading Paying Fair: Four paths to fair pay and succession for private venture executives.

How a new executive earns respect by listening until s/he can be heard.

Most people cannot listen until they have been heard. As a consequence, wise leaders who want to affect thinking and behavior learn to first be a great listener to those they aim to impact.

Holding back from jumping-in when a key point comes to mind in the middle of a fast-paced conversation can be a challenge but it is also essential in order to avoid being written-off as one who does not listen or understand, especially if the leader is new to the organization.

The following steps help a leader stay in-tune and attuned and dramatically improve their odds of success:

  • Pay attention. When someone talks, give undivided attention and do not interrupt.  While s/he is talking you may think you know what s/he is going to say and what you want to say next rushes to mind.  In that instant you experience an irrepressible urge to interrupt and jump-in.  Following the urge causes many bright, successful senior executives to often unintentionally and repeatedly use the power of their position to hijack conversations.  The pattern wears on those in the organization and soon the leader is written-off as one who never listens and who does not get, or care about, those s/he leads.
  • Don’t jump-in.  Set thoughts aside in your mind or make a note of what you plan to share when the time comes.  Force yourself, instead, to concentrate on precisely what is being said.  Do not evaluate what is being said and do not begin to formulate a response.  Just listen word-for-word with the objective to repeat back exactly what you heard to be sure you got it right.  To force yourself to listen, try to write-down what is being said exactly as you hear it in the moment.  Strive to hear and understand each word as well as the overall point being made.
  • Say what was said. When the speaker stops, ask for permission to repeat back what was heard.  Follow with an opening phrase such as: What I heard you say is:…” and then say back what you heard, word-for-word.  When done, ask for confirmation that you heard correctly.

Continue reading How a new executive earns respect by listening until s/he can be heard.

How entering executives can increase the odds of successful transition.

Fast growing and otherwise successful organizations often outpace the rate at which they can groom and grow senior executives to keep up with the need to guide and govern increased scale and complexity of operations.  Consequently, they bring top talent in from the outside.

As outlined in a previous IntelliVen post, a senior hire is hardly a path to guaranteed success. Similarly, a Harvard Business Review article by Jean Martin in 2014 reports: “Outside hires take twice as long to ramp up as a leader promoted from within. Astoundingly, C-suite executives report that only one out of five executives hired from outside are viewed as high performers at the end of their first year in house. And ultimately, of the 40% of leaders who are hired from outside each year, nearly half fail within the first 18 months. The direct and indirect costs of the failures are staggering, far exceeding the cost of the search that found the executive.”

Executive transition is hard for the receiving  organization and for the entering executive. Fortunately, there are things both can to do increase the odds of success.

One of the toughest things for a senior executive to do is transition into an existing system of operation.  At first, during the “honeymoon period”, a lot about the entering executive seems to incumbents to be new and different.  It may at least be interesting, and at most exciting, to let the “new guy” operate with a high-degree of independence hoping and trusting that good things will happen especially given how much he or she is being compensated.

After six months or so the honeymoon is over and results start to speak for themselves. Continue reading How entering executives can increase the odds of successful transition.

An Action Plan for Executive Transition into a new Lead Role

Executive Transition into a new Lead Role

One of the toughest things for a senior executive to do is break in to an existing system of operation.  At first there is an exhilarating air of difference.  Everything is new and there is so much to figure out and to absorb.  The opportunity to have a major impact induces what seems to be an endless rush of euphoric excitement.  All too soon the feelings devolve into isolation and loneliness along with the realization that no matter what good things happen, everyone watching will wonder why there was not more. Continue reading An Action Plan for Executive Transition into a new Lead Role