Does anyone have any intervention ideas for a C-Level executive whose effectiveness is eroding?
We have a C-Level executive who "grew" up with the organization and has a strong relationship with the founder and CEO. This person has lost touch with the current direction and scope of the organization, but still feels the need to try to control processes and procedures that they no longer understand. Any ideas or suggestions regarding how to approach this situation?
Clarification added July 13, 2009:
Thank you Pieter. The organization is small (150 employees). The Directors (1 level below the person in question) are near the point of "revolt" as they feel they are unable to operate effectively. The Directors have excellent rapport with their reports- - production, profit, and growth are stronger now than ever - - however there is little rapport between the Exec. and the rest of the organization (except with the CEO).
Answers (17)
There is very little detail available that would probably help in providing a suitable answer, but here is a very superficial stab at it. A change is as good as a rest. If the organisation is large enough, then I suggest a lateral assignment for a couple of years would do wonders, if too small, maybe an executive exchange with another firm of equal size. Last of all possibly have the executive engage in team building exercises with office colleagues, building trust etc, although I find that after 5 days the same old habits soon repossess the office environment.
Brad T.
Founder at TopHabitTracker.com - a great mobile web app helping you stay on target with your goals!
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Help the executive to become effective again, whether that's within your organization - or not.
Heather S.
Helping change agents roll the boulder uphill at work.
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It sounds like both the person in question and the CEO need a clue. It might be the Directors near "revolt" who need to step up and give it to them.
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Lee S.
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The difficulty of dealing with a C-level person is that such a person was often promoted and encouraged as a "success". Being told otherwise is hard to be heard. Ideally, advice must come from a peer or respected source.
A couple of (hopefully) non-offending ideas.
(1) Find a article or book that suggests an approach that focuses on team interaction. Encourage this because you believe that the improved communication will increase the positive perception of the department.
(2) Tell the manager that you feel the manager is being distracted from important tasks with the daily drudgery of the direct reports. Suggest that the employees would consider themselves more capable and empowered if they were authorized to decide and report progress up. Also, a better manager trains and trusts the staff instead of being directly involved.
If the manager is resistant to change, there is little that you can do.
Have you considered using an executive coach for expedited intervention and support?
Scott P.
Managing Partner - Global Healthcare & Benefits Practice Leader at Clinton Rubin LLC
It is unlikely anything will change for the better until the CEO understands what is happening. And I recommend being open to the possibility that the CEO might already know more than you think, and perhaps perceives the problem differently or is already trying to address it in some way.
This situation has come up multiple times in my practice serving as consultant to the CEO or as an interim C-level for various organizations. As an outsider it is not only easy, it is responsible to take any such infromation about a threat to operational performance to the CEO in a sensitive manner. So if there is a relatively senior "outsider" working in the organization then I'd strongly suggest getting the message to him or her and let them run with it.
If no such outsider exists it gets tougher. But there are often other possible ways to get through to the CEO about a situation s/he should at least consider looking into. Many HR or Compliance departments have a hot line to report significant violations of policy. While this may not exactly fit that description the vehicle might still get the issue raised to a level where it will be visible to top management. Another possibility is that typically there are other C-level execs who can be brought into a confidential discussion and their advice on how to address it requested. C-Level execs in effective organizations tend to have overall management accountability in addition to their own portfolios and have a vested interest in the continued success of the entire enterprise. A final thought is to try to use the Board of Directors. Even an anonymous or "confidentiality requested" letter to a Director is likely to result in the CEO being aware that there is some isse to be addressed.
I'm sure others have good ideas but I've seen these work in situations like this.
Good Luck!
Roberta C.
Talent Maximizer-CEO Roberta Matuson & Co., Author-Suddenly in Charge. Named a Washington Post Top 5 Leadership Book
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It is not uncommon for those people who built the organization to no longer be the ones to run the organization.
I've been in your shoes before and can tell you that often times the CEO will only listen to an outsider, even if you are telling him the same thing.
Contact people in your network to see if you can find an Executive Coach who can either bring this employee back into the fold, pull this team back together or help transition this person out of the organization.
Links:
There is nothing like a reality check in the form of direct feedback provided in a safe, constructive environment. Collecting input from his direct reports (and their teams) and providing it in a structured format (like a 360 assessment) along with the level of risk if changes are not made. I also feel that this type of intervention needs explicit support by his leadership and regular meetings with a coach.
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JJ O.
Experienced Microfinance & SME specialist able to consult in five African languages.
It would appear that the organisation has outgrown the available skills and competencies at this level. As a consultant in the Owner Managed Business sector, I often see this. Skills and competencies were obtained at the lower levels, but because of the CEO relationship, this role was protected and left behind.
It is the duty of the CEO to address this issue, however difficult it may be. Company interest comes first if this is affecting performance and relationships in the workplace. The CEO needs to be told what the facts are, the possible consequences and impact on the business if not doing anything,
Performance counselling should be implemented, the issues put on the table, actions planned to improve on this, progress monitored, feed back given etc.
Maybe a 360 degree feedback session, faciltated by a strong competent outsider could help to bring the issues to the front and create awareness about the severity of the problem.
I also assume there is a lot of emotion in this. Maybe the team could be supported to deal with the emotional side of things.
Whatever you do, handle with care, as a pissed off executive could be a risk for company reputation amongst opposition, loyal staff, media etc.
Perhaps the disconnect is due to totally different visions of the opportunities the company has to grow its business. And, perhaps both the CEO & the revolter's are correct.
If the disconnect is due to differing 'visions', it might be productive to divide the company further into divisions that can pursue each vision, thereby increasing the growth rate for the whole over the 'win-lose' proposed/implied in the question above. Many companies have fostered growth by competition of divisional operations.
...IMHO
Tom
Gurprriet S.
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Hi Shawn
I have dealt with similar scenarios in the past and I have learned that they need to be handled with sensitivity and tact.
Just giving feedback to the person in question is not enough. You can bet s/he already knows.
What you need to examine is the person and his/her motivations in the present context. Context has an equally important role to play and hence you have to intervene keeping the entire eco-system in mind.
To my mind, this person's Supervisor (the CEO) is accountable for ensuring s/he does NOT lose touch with the direction of the company. So what is it the CEO has to do differently, in order to re-engage this person?
I would also hold the Leadership Team (This person and Directors) EQUALLY responsible for a collective leadership failure and this team needs to introspect together, the reasons for such a situation.
I think the CEO and this person, both need a coach. And the Leadership Team needs an intervention from a skilled facilitator.
Once this is done, then you can look at the team itself evolving a set of new:
Behaviours
Review Mechanisms
Support mechanisms
Job descriptions/Role Clarity
To support the new strategy and direction.
You must deal with the emotional content first, before you get into the rational.
Hope this helps!
Vanita R.
Director at Pikvan Consulting Solutions Private Limited
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Hi Shawn,
CEO can take help of his family members or friends, if he have developed rapport with them.
If not, the CEO should take him to a lunch or any informal meeeting and try to figure out what is driving the executive to the direction which is not desired. say eg executive has no idea that growth of organisation has called for lots of changes.
And once he gets to know the reason, he can explain the situation himself to exec. It will be routed through the way the executive thinks. The executive will feel important and listen to what CEO is saying and will understand his duties towards organisation.
Regards
Vanita
Megumi M.
Change Consultant at National Australia Bank
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I would agree with the comments around tackling the issue from all angles. My suggestions include:
1) CEO - get his/her view on the effectiveness of the executive and the impact he/she has on the organisation, involve him/her in the diagnostic process, involve him/her in the coaching process if he/she decides the executive is worth keeping.
2) People in the organisation (especially direct reports) - definitely a feedback/diagnostic process where they can safely give feedback to the executive. Although ensure enough people are asked so it covers both the supporters (if there are any) and revolters. To keep the feedback constructive and useful, plenty of qualitative comments such as the following are suggested:
- strengths and areas for improvement
- impact of current approach
- cost of continuing the current approach
- suggestions for a different approach
- potential benefit to organisation and the executive of changing his/her approach
3) Coach - someone independent can do wonders. The coach can use the diagnostic/feedback to start the conversation with the executive
4) Team coach/facilitator (this can be the same person as the coach with the right skills) to help the team start to discuss the issues more openly as a group rather than collude by not giving direct feedback. While of course there is power differential and fear, the team is playing a part in the issue if they are not willing to address it in a more constructive way than a 'revolt'. It would help the direct reports if the CEO supports them.
Russ F.
Dynamic and outgoing training executive with over 15 years of experience leading corporate organizational development.
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Shawn,
Tough challenge. The CEO and this C level have grown up together. They probably have a very close and great relationship. It sounds like from your description that the CEO is a people person and has a good relationship with the Directors and the line employees. So it sounds like the real problem is that C-level and the CEO's awareness of the C-Levels actions and how they are effecting the organization. I can think of three potential interventions for you.
1. I would look into doing a company engagement survey. Making it truly in depth and allow the employees to truly vent on what is going an and who is getting in the way. (the individual data has to remain confidential with the aggregate data shared with the SR team.) This might help the C-level see their faults and that the organization is challenged with him and help him understand his impact.
2. I would hire him a personal coach that you can trust. Someone that is going to lay it out for him and share with him the impact he is having.
3. You can also facilitate a shake up at the top. Sometimes in my experience a game of musical chairs at the top can help the larger organization see the impact that this person is having. Be cautious, this could cause more harm than good. So if you look at this as an option do it very carefully.
Let me know how it proceeds. If you would like to talk through any of these solutions or just rap about this don't hesitate to call. Russ Faulkner 773-531-9901
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James R.
President, JMR Financial Grp, Fresh Org Perf Consulting in Sales / Services / Operations / CRM / Metrics Strategies
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Good day (from Denver) Shawn - You've received some very good ideas already. Hopefully I'll offer one or two that complements them.
It is my belief and observation that intervening into a C-Level executive performance whose either ineffective or his/her effectiveness is eroding can become a valued opportunity for organizational improvements. Without this “demand for action”, often the organization floats “like a stick on the lake of mediocrity”; changing only when the winds (external factors) change.
Given that production, profit and growth are stronger than ever, my recommendation is to objectively determine what is producing this extraordinary performance despite (or due to?) this chaos. Some leaders are what I refer to as “conflict resilient”; they thrive in chaos, even try to elevate it at times, all in the name of financial success. Possibly the CEO and / or this executive have that style of leadership (and believe they’ve demonstrated that it works, given their recent financial success.
My intervention recommendations in these types of cases are driven by openness, objectivity (results vs. personalities) and appreciation for past successes as well as, fresh commitments toward engaging / adding new best practices that will enable tomorrow’s successes. These new investments are intended to replace non-performing aspects (just like outdated products to a manufacturer) of the culture within the “organizational culture portfolio”; resulting in an overall stronger, more diversified and flexible organization. Here are several specific recommendations to consider:
Executive’s Focus: Narrow the “authoritative breadth” of the executive in question while expanding the depth of his/her contribution to the organization in the areas that he/she excels. Enable him/her to lead new initiatives in his/her areas of strength that elevate the organizational KPI’s.
New Leadership: Promote one or two top performers that have a history of producing desired results, hiring “desired talent with upside potential” and skilled at implementing the desired organizational culture changes that will elevate the overall organization. This / These new leader(s), in combination with the new role of the executive in question should combine to outperform the previous “model” while driving intelligent change (and the competition “crazy”).
Chaos Coaching: Investing a small amount in outside performance coaching is a requirement for objectivity and improved performance. Chaos is a way of life in organizations; the best embrace it and turn their negative hostility outward toward their competitors. Inside (W2) employees are required to “drink the corporate Kool-Aid” or they’re often punished in subtle or not-so-subtle ways for “not following the party (in power) line”. This creates “harmonious dysfunction” which is only good for the competition.
Hopefully, there’s an idea or two that you can start with, improve and then use to achieve your desired outcomes!
~ Jim
Your question highlights a recurring theme in entrepreneurial organizations...private and public. If company personnel (executives and rank and file employees) are not constantly plugged in to the strategic vision and direction there is the strong likelihood they will: (a) become distant from others, (b) be "outgrown" by the company, and (c) not be respected by subordinates and co-workers. Seems like this is what you have here.
The person responsible for providing the direction and obtaining commitment from the executives to execute on the plan is the CEO. In the case here, I would fault the CEO for potentially not executing on a true strategic plan. So, as a question, does the organization have a true strategic plan, or is it just "planning" via financial projections? And if the company hits its numbers everything is cool and this C-Level executive is "safe"? I would not doubt if this is the case.
So, one suggestion is to strongly encourage an outside facilitator for strategic planning. This may flush out the disconnect the C-level exec has with the organization and his subordinates and may result in self realization of his faults....what do you get? Maybe you end up with an improved C-Level executive who has a shared vision with not only his CEO but his subordinates and co-workers. Or you could get someone who recognizes that they need to move on in order for the company to move up.
Your call.
JEC
Maria M.
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How did the CEO allow this to happen? I would start at the top/ and talk to the CEO. IMO it's a top down problem.
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Clarification added July 16, 2009:
1) have the CEO create a solid draft of the One Page Business Plan for the company (vision, mission, obj/strategies/action plan)
2) have the C-levels get together and create a plan for their profit centers or departments.
3) Have the directors do the same
4) finalize the company plan.
You can talk a tour of the process below, put "maria" in the referred box
Most new companies need generalists. But the company outgrows them as the company grows, then the company needs more specialists. Might be a part of the problem the company is having. (I never believe it's 1 person's problem)
