Category Archives: People Matters

Posts related to the people side of strategy and operations

A Blueprint for Entering CEOs

CEO transitions into organizations are not easy. How long CEOs last and the frequency with which their own, and their Board’s, expectations are met have been studied in academia and well reported in the media. The results are stunning.

Two out of five incoming CEOs fail to meet their objectives in the first 18 months. Even those who make it past 18 months now have an average tenure of 7.6 years, down from 9.5 in 1995. The outlook is even bleaker for outside CEO hires, who take twice as long to ramp up as those promoted from within. Only one in five CEOs hired from outside are considered high performers at the end of their first year by their boards and nearly half leave within 18 months (reference: Harvard Business Review, 2014).

CEO failure may have less to do with competence, knowledge, or experience than with how CEO transitions are orchestrated and whether key support steps are missed. While not a guarantee, a programmatic approach to new executive transition can increase the odds and shorten the time-frame in which success is likely to be achieved.

Four goals, detailed in a previous IntelliVen post, guide the approach. Though they are simple to understand, the goals are not easy to achieve. Expert third-party facilitation, an authorizing environment committed to success, and previous experience, diligence, and focus go a long way towards improving the odds. Continue reading A Blueprint for Entering CEOs →

What to do when the hiring manager says: “Name your terms!”

“What will it take to hire you?” These words may be music to your ears, but how you respond makes a big difference. Take your time, collect your thoughts, and follow these seven tips to make the most of the opportunity:

  • Decide you want the job. Make sure you like what the organization does and that the people you would work with give you energy and get energy from you. If you do not like and want the work, or if you do not look forward to spending time with the people every day, a job at any pay will turn into a grind. If not, politely let them know and move on…it is a waste of their time and yours to do otherwise. If you want the job ask for a day or two to discuss it with advisers before getting back to them.
  • Know your worth. Research the web and ask around to learn the current market value for your basket of skills. If you think you might undersell yourself, do some digging to arm yourself with up-to-date information and boost your confidence. On the other hand, be honest with yourself to avoid an inflated sense of worth. Make sure your expectations are reasonable given your compensation history and relative to those with comparable scope and scale of responsibility, experience, and results in your location. Do not go just by job title. For example, a first-time manager of a six-person team is not worth the same compensation as a 15-year veteran who has successfully led a 30-person team over multiple years, even though both are called Project Managers.
  • Buy, don’t sell. Most job seekers pitch to prospective employers hoping to get an offer they can accept or reject. A better approach is to interview potential employers for a place to do important and specific things over the next career interval (as described in The Alliance, by Reid Hoffman). The question is not whether you are good enough for them … it is whether the opportunity is right for you. Make clear what you seek and get them to convince you that they have it.
  • Think in terms over time. When asked: “How much do you want to make?” most reply with what they want in an annual base salary and bonus. A better strategy is to make clear that you want a good chance to earn a specific larger sum over some number of years. Tell them how much you need to live on, but you are OK with the rest being at risk based on personal and organization performance.  For example, you might let them know you want a good shot at earning $500,000 over the next three years and, as long as at least $100,000 is in base and high-probability bonus, the rest can be in upside bonus potential and equity appreciation. The idea is to aim high, but with a reasonable base and bonus given your history and the market for your skills, leaving them with the challenge to show how your bigger goals can be met.
Sample Heads of Agreement
  • Put it in writing. The hiring organization may be inexperienced or unable to pull together and present a written offer. Make it easy for them and position yourself favorably by drafting your own terms. Consider using this Heads of Agreement format to lay out terms important to you in a way that is easy to understand, easy to assimilate, and easy to work with.
  • Label it DRAFT so it is clear you are willing to negotiate, but treat it as an entire package and do not negotiate line-item by line-item. For example, if the organization wants to pay you a lower base, and you can live with that, tell them so but also ask for more (because cash is certain and bonus and equity are not) than an offsetting increase in bonus potential and/or equity.
  • Walk through it. Arrange a time to review your proposal on the phone or, even better, in person. Talk through the terms as you have laid them out and offer to share your it, after refining it based on the discussion, for them to turn into a written offer.
  • Be gracious. When you get written terms, it is critical that you express appreciation, ask lots of clarifying questions to be sure you fully understand the offer, commit to nothing, and ask for time to review with your advisers. You will earn respect by asking for time to review it and leave the best impression possible by not haggling over any items on delivery.

Finally, get back to them with your suggested edits but do not get greedy. When you have what you want…take it!

See Also

How rational actors can reach agreement.

Thesis: In the face of the same data, two rational people will make the same decision.

Implication: When two people disagree on something it is likely that there is something one knows that the other does not.

Strategy: When two people disagree, each should strive to reveal what is relevant that s/he knows and that the other does not until both know everything that the other knows.

Conclusion: Agreement should be reached if both are rational; that is, neither is acting based on self-interest, emotion, fear, etc.

Implication: When you reach an impasse with someone on an important matter, reflect on what is important that you know that the other party might not know and offer to share it. Similarly, ask the other party what s/he knows that is important that you may not know. Continue reading How rational actors can reach agreement. →

Market Lead Position Description

An organization counts on a Market Leader to:

  • Build and work with a top team to develop, maintain, and drive to achieve an annual plan for a well-defined portfolio of current and targeted customers.
  • Connect with established and emerging customers to develop a point of view as to where the market is and where it should go and then proactively and systematically drive towards those ends.
  • Develop, hold, and communicate a clear understanding of their organization, market, competition, partners, and market trends.

Over the course of a performance period, the organization counts on a Market Leader to always be able to present: Continue reading Market Lead Position Description →

How to Run a Great Annual Leadership Team Offsite Meeting.

Most leaders find it difficult to adequately prepare— assuming they even know how — to facilitate a high-powered, executive offsite. The truth is that it is nearly impossible for a leader to facilitate and participate in, let alone also lead, their own offsite. A better strategy is to hire experts who use proven approaches, tools, and methods to prepare and facilitate a great annual leadership team offsite meeting.

The ten tips and resource links below will help the thoughtful leader to get out in-front of the planning process and make clear to the board, top team, and employees that the organization is in good hands and well-led.

Plan the Plan

  • Inform the board and the management team that it is time to work on plans for the coming year.
  • The management team can be as small as three to five members or as many as 15 to 20.
  • If there are more than seven, pick three to five to serve as an executive committee.
  • Prepare a time-line of steps, outputs, and review points.
  • Assign a process leader who will manage planning as a project.
  • Schedule offsite session and line up facilities and facilitation support.

  See details on leadership team strategy and planning sessions. 

Continue reading How to Run a Great Annual Leadership Team Offsite Meeting. →