EXECUTIVE DERAILMENT – TEN TOP REASONS AND PREVENTIVE ACTIONS

Dr. Prakash Bhide

Executive derailment is very common but not much talked about. As per Jay Conger (2005) sixty five percent of top executives promoted or fail or hired, derail within the first one year. As reported by McCall; about fifty percent of high potential executives derail at some time during their career. At senior leadership levels of CEO/CXO, the cost of derailment is forty times the annual CTC which we can translate to a loss of 25 to 100 crores. It is hence crucial for the organization and high potential individuals to understand the reasons for derailment and ways to prevent it.

“Derailed Executive is a person who has been very successful in his/her managerial career but who failed to live up to his/her full potential, as the organization saw it.”The derailed executives are fired, demoted, forced to resign/retire, shunted aside, or passed over or stagnated at the same level.

“When a manager who was expected to go to a much higher level in the organization and who was judged to have the ability to do so is fired, demoted or plateaued below expected levels of achievement, it is considered as Derailment.”

It is interesting to note that there are amazing similarities between successful high potentials and derailed executes. The derailers are often noticed in advance but frequently overloaded or forgiven because of individual’s high potential, high performance or because their strengths were highly valued – Denton (2006). Several studies have been made by Centre of Creative Leadership from 1980’s and several other researchers such as Hogan, Buhler, Huges – Brown, Jay Conger, Dotlitch and others.

The major derailment factors are clubbed under following four themes:

1. Failure in interpersonal relations.

2. Failure to meet business objectives.

3. Failure to build and lead teams

4. Inability to change/adapt during the transition.

Top ten derailers:

1.) The darker side of “sources of INITIAL SUCCESS and strengths”:

It has been observed that sources of initial success, many times, get converted to derailers at later stages in career.  Similarly, strengths overused may become derailers at higher levels.

1.1 Track record – success syndrome:

Accelerated success blinds a person and converts itself into ego & bravado that “I can never fail.” Initial success in narrow technical/functional area misleads many High Pots that this is the only way of success. This becomes a derailer at higher levels. 

1.2 Brilliance:

High IQ, academic success, analytical and problem solving skills and burst of genius in specific situations makes HI POTS intimidating to others.  Brilliant people many times dismiss less brilliant people and devalue other people’s ideas and contributions. This is perceived by others as disrespectful and arrogance. It is also found that brilliant people are unable to communicate effectively with others and are also perceived to be poor listeners.

1.3 Commitment and sacrifice:

Initial strength of working for very long hours and accept all types of assignments make high potentials to over commit and expect subordinates and all others to become workaholics like themselves. They also treat people as means to an end which become a derailer.

1.4 Charm:

Some people are capable of considerable charm, charisma when dealing with others. Many times they use it to impress bosses for promotions. Many High Pots are found to selectively manipulate others for personal gains which become a derailer.

1.5 Ambition:

Ambition and aspiration lead to initial success but sometimes darken to achieve personal success even at the expense of others or the organization.

2.) BLIND SPOTS:

Weaknesses and flaws that didn’t matter before or forgiven in the light of strengths/results become derailers at higher levels and new situations. Korn Ferry (2012) has reported that 80 % leaders have blind spots about their skills and capabilities.

3.) POOR INTERPERSONAL RELATIONS:

As individual contributors in technical and functional areas, High Pots achieve success in spite of poor interpersonal skills and interpersonal relations. At senior levels, the interpersonal relations become derailers and many High Pots are reported to be insensitive to others, cold, aloof & arrogant, overly ambitious, isolated, authoritarian with poor networking and having poor work relations with team members. These become derailers.

4.) INABILITY TO BUILD AND LEAD A TEAM:

Failing to manage subordinates, motivating team members and leading teams effectively, partnering with suppliers, customers and other stakeholders, becomes a major derailer.

5.) LOW EMOTIONAL INTELLIGENCE & ADAPTABILITY:

Poor self awareness and self control, mood swings, volatility, lack of understanding others and managing relations become critical in the global networked world.

Inability to adapt to changing situations and dealing with crisis, unable to adapt to a new boss with different style, unable to adapt to a new organizational culture, unable to adapt to rapidly changing business environment, customer expectations, government policies and conflict with board members.

6.) WALKING THE TALK: 

Building trustworthiness, walking the talk, fulfilling commitments in difficult situations, high moral character and values are essential to be successful leaders. Lacking in any of these can become a derailer.

7.) WORK – LIFE BALANCE: 

Very successful leaders with high ambition and aspiration are workaholic and have poor work – life balance and family relations. They expect the same from subordinates and other team members leading to disastrous effects, heart attacks, stress and strained interpersonal relations and low teamwork and engagement.

8.) LOW LEARNING AGILITY:

With rapidly changing business environment, uncertainty and complexity, leaders need to be active learners with high learning agility. They need to acknowledge mistakes and learn from failures. They need to actively seek feedback from employees, customers and other stakeholders and critics to understand the reality, for changing their strategies. Lack of learning agility can be a great derailer.

9.) POOR STRATEGIC PERSPECTIVE: 

Lack of business knowledge, strategic thinking, low business and commercial acumen, narrow focus on short term or only long term, poor shared vision, risk avoidance can become serious derailers.

10.) ORGANIZATIONAL ACCUMEN: 

Low political savvies, low understanding of organizational dynamics where others take undue advantage of Hi Pot or being manipulative and political machiavellian, self – centered behaviors can become great derailers.

WAY AHEAD FOR DERAILERS: 

Many times people use failure and derailers synonymously. These are different. Failure could be because of wrong judgment, strategy, luck or circumstances. Derailers, on the other hand, are more personal characteristics which become major weaknesses and flaws at higher levels and certain changed circumstances and situations. Failures can be overcome more easily than derailers. 

It is not that once derailed executive cannot bounce back and get promoted. Experience shows that this is rather difficult in the same organization for professionals (not owners) as the “BLACK SPOT” of derailment will remain and cannot be wiped out completely. However, there have been many cases where executives who have learnt from derailment and corrected themselves have done well in other organizations or as entrepreneurs on their own.

WAYS TO PREVENT DERAILMENT: 

There are several actions which can be taken by individuals and organizations. Organization can help High Pots avoid and prevent from derailing. Online assessment by Hogan assessment  instruments (specially developed to assess derailers), Psychometric assessment of “Dark side of personality” (MMPI), 360 degree feedback, executive coaching and mentoring specially during transitions, job rotations, promotions, international assignments are some ways which can help. Authentic 90 degrees feedback from subordinates is lately found to be a great predictor of leadership style and potential. Individuals should proactively seek feedback, be open to criticism, learn from mistakes, ready for personal change and seek executive coaching and mentoring to avoid being derailed. Humility and learning from others, is a great quality for avoiding derailing. Working for a super ordinate goal and not for personal gains, is an excellent way from being derailed.