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.

LEADERSHIP DEVELOPMENT THROUGH EXECUTIVE COACHING

Dr. Prakash Bhide

Traditionally coaching in India was perceived as a stigma and often clubbed with counseling which was primarily meant for corrective actions Executives were reluctant to be coached as it was viewed by peers and subordinates as something against the coachee. Bosses and organizations sometimes considered it a last resort for correction of negative behaviors or performance before an exit, stagnation or sidelining of executive. This perception is now changing as executive coaching is being seen in positive light and is being sponsored by the CEOs and organizations to develop and motivate high potential employees for accelerated growth. In fact, executive coaching is today viewed as a special leadership developmental initiative for 'high potential leaders' who are on accelerated career path.

Today, executive coaching is seen as for 'successful leaders to become more successful'. Many CEOs and top leaders feel lonely and isolated. They have their fears, doubts and at times feel their inadequacies. In spite of these, they have to display that they are in total control as their own personal stakes in terms of reputation are high. The business consultants have given their expert recommendations, now CEOs and executives have to take the final call they are looking for a sounding board - an external confidential trusted friend, philosopher and guide. CEOs also realize that 'What got them here, won't get them there' (Ref. Marshall Goldsmith*). The top executives realize that they need to have a global mindset, entirely new skills and must overcome certain derailers. The increasing number of organizations opting for executive coaching for its leadership and potential leadership team is a positive indicator for the nascent industry in India.

COACHING THE INDIAN WAY

One shoe does not fit all. What works best for the west need not work in the Indian context. The western coaching methodologies which resort to asking questions and expecting the coachee to find answers or solutions, is not appreciated by coachees in India. 

INVEST IN POTENTIAL HIGH PERFORMERS



Yogesh Misra



“Training is for the job-at-hand, while development is for future needs, so training is more about the skill which are needed for a position.”



Training is generally imparted in three forms, namely, formal classroom training, on-the-job training, and reading of literature. Some people are faster learners than others. Therefore, an organization, while hiring should try to ensure that they hire fast learners, for which they should use testing tools which measure fluid intelligence. So while dealing with the fast learners, intensive training can work, but if the learners are average, then the training has to be broken down into smaller modules.

Another important factor is the style of learning, as different people prefer different styles of learning, and these could include classroom training, on-the-job training or abstract conceptualization. Once the specialized certification programs on products are over, the person needs to shadow a senior person in the organization for one year.



The aim of providing training for an organization should be to ensure cross-functional expertise so that employees are able to relate theory with concepts, and can confidently face clients. Training efficiency can be measured through assessment centre, wherein employees undertake simulations of typical scenarios that they may face with clients. They are also asked to frame proposals and presentations based on which competencies are identified. They also follow a 360-degree method which helps to assess gaps and shortcomings.

BACK TO BASICS - Business Leadership Excellence Mantras In Uncertain World

Dr. Prakash Bhide

Business world is facing tectonic upheavals in unpredictable, complex & uncertain world. Competition is coming from unrelated sectors and unexpected new competitors. The only constant is ‘Continuous Uncertain Major Changes’. Shareholders, customers, employees and society are holding the CEO’s accountable for quantum growth and accelerated profitability. In this scenario, CEO needs to stand on firm rock like foundations and principles to guide them. Back to basics can help leaders in sound decision making in this uncertain world.



India used to be the envy of the world. We were Number One in every aspect of development. Pupils across the world turned up at our door for seeking knowledge at our temples of education such as Nalanda and Taxila (Like Harvard, Wharton and London Business School today).
The rich insights of our epics, such as Vedas, Upanishads, Ramayana, Mahabharata and Bhagwadgita, have stood the best test of times for guiding our lives over centuries. Back to basics stresses simplicity and adherence to fundamental principles and values for excellence.

Our gurus & role models have always shown us that Back to Basics is the best way to deal with crisis and uncertain times. Principles and teachings of our epics are the gems and jewellary in the history of mankind. They can act as ‘Amrit’ (nectar) which can be a Sanjeevani (life giving) to all business enterprises. We are proud of Panini (originator of grammar), Aryabhatta (great mathematician and astronomer) and Bhaskaracharya (originator of concept of zero). India is the birthplace of three of the world’s major religions – Hinduism (7000 BC), Buddhism (487 BC) and Sikhism (1699 AD).

Recently, Business Leaders have been lured by western management theories and best practices. We need to go back to our basics & roots of Indian Cultural Ethos & Values. Building on the solid foundations of character and Indian values, we can customize western technologies & skills with discretion for modern times. We can thus move from BEST PRACTICES to NEXT PRACTICES, which will come from India. Mahatma Gandhi relied on the teachings of Bhagwadgita, Mahabharata, Ramayana, Upanishads, Bible and Koran and scriptures for decision making in crisis situations.

EFFECTIVE LEADERSHIP AND STORYTELLING



Dr. Prakash Bhide

Effective Leadership and influencing stakeholders (followers, customers, bankers, board members etc.) with storytelling, is a cutting-edge practice and still evolving as a special competency.



Effective leadership is influencing others and is helping them in aligning their efforts and commitment to achieve a shared vision. Leaders paint an exciting picture of the vision and can effectively communicate the same through a story. Many times, leaders have to use the art of persuasion to get the full commitment of their followers. Storytelling is an effective method to achieve this as it appeals to the heart & emotions. Leaders know the way, show the way and go the way to achieve this major change from present to achieve the future vision. Dry PowerPoint slides with lots of data can convince the mind, but an effective story can galvanize action.

Storytelling is nothing new and we can find impactful & motivating stories from ancient ages. As children, we have been not only fascinated by mythological and fairytales helping us to improve our imagination, curiosity & creativity, but also forming foundations of our deep-rooted values, beliefs & character. Aesop’s fables and Cinderella and ‘Alice in wonderland’ have left long-lasting impressions on our minds. Moral Science stories also help us to make right decisions at crucial moments in life.

Indian mythology is rich with enchanting stories of Ramayana and Mahabharata. There is a story of a king who was worried that his two young princes were not studying and learning. He engaged many teachers, but none was successful. Ultimately a teacher, Vishnu Sharma, was able to teach the young princes the act of kingship, through stories of animals which we know as ‘Panchatantra’. Stories of Birbal and Tenaliraman have fascinated us as children.

LEADING FOR TOMORROW

Mr. A Sundara Rajan

With the advent of the Internet, distances shrank and with the advent of social media, the clock has shrunk. Leaders are under more pressure to handle issues as they happen, manage teams across multiple geographies and do all these, more often under public glare and commentary. Add to this, the challenge of managing multiple generations of managers and staff. Today’s leader has to strike the right balance between letting go without losing control, build for size while remaining agile and flexible, and allowing the exuberance of youth to challenge without creating chaos. Leadership 24*7 may sound stretching it a bit, but for many a leader today, it is a reality. Here are a few ideas to shape your leadership style in today’s ever changing, chaotic environment

Be visible
The presence of a leader provides a huge boost to the team’s morale and their commitment to the common goal. A visible leader reinforces the leader’s messages. Visibility of a leader tends to positively impact the perceived approachability and helps ideas flow from people who are hands-on in business. More than in good times, a visible leader who is among people and sharing in action, makes a great impact during turbulent times. Using technology to be virtually present in every important event is critical. Visible leaders inspire their teams.

Leverage the power of praise

There is no greater a gift for any manager than a genuine praise from a leader. Talented leaders have always used this inexpensive form of motivation to charge up their teams. Despite knowing the power of praise, many a leader neglect to use it. When it comes to using this powerful morale booster, the rules are simple – be specific, be authentic, do it now and do it often, and see the magic.

Never be afraid to demand results

Most of us remember the tough teacher or coach more than the easy going ones, more so if they have been fair. Ever wondered why? They made us look good at the end of the term after all the hardships they put us through. As a leader, you have the responsibility to deliver the results, no matter what the environment is. While being popular is a nice feeling, be ready to demand results from your managers, despite the stress, it tends to bring along on both sides. It is better to be known as a leader who accomplished results, than a popular one who failed. After all, the buck stops with you.

Invest in future leaders
The greatest gift you can leave behind for your organization and team is to prepare them well to continue without you. Good leaders prepare their successors and train them enough to be self sufficient when the time comes. Some among today’s mid-level operational managers will be leading your organization tomorrow. Invest enough in training these executors of today to become strategic leaders of tomorrow, to gift a pipeline of leaders to your firm.

BE AN EFFECTIVE LEADER WITH 360 DEGREE FEEDBACK - By Dr. Prakash Bhide

Dr. Prakash Bhide

1. Introduction

It is rare to get authentic feedback on individual leadership style, particularly at senior levels. It is seen that in Indian culture and ethos, neither subordinates nor peers or even bosses give negative feedback as they are afraid that it may upset the individual and they may spoil the interpersonal relationship. Subordinates have a dependency proneness and normally praise the BOSS or keep quiet on the negative aspects of leadership behaviors. Bosses also do not seek feedback as they feel that asking feedback is a sign of weakness. 360 degrees multi rater feedback is a powerful tool to give authentic and anonymous feedback to LEADERS.

2. 360 Degree Feedback

In 360 Degree feedback the individual leader is given feedback by people working closely with him/her – such as BOSS, PEERS and SUBORDINATES and sometimes significant customers. The 360 SURVEY has to be designed to have questions or statements to get focused feedback on specific aspects as per the survey objectives. Many times open-ended feedback on WHAT TO STOP DOING? WHAT TO CONTINUE DOING? WHAT TO START DOING? can provide rich insights for leaders. The survey is ONLINE and anonymous to get authentic feedback. Many companies initially use external consulting agencies to ensure and effectively manage the respondent’s perception that the feedback is really anonymous. Normally boss, 3 or 4 peers and 3 or 4 subordinates (total 8 to 9 respondents) are invited to give the feedback. It is a good practice to let the leader choose the respondents. This ensures that leader accepts the feedback more readily – both the positive and negative aspects.

The survey should be initiated after proper discussions with the leadership team and having a consensus. The CEO must also participate in the survey and get the feedback. This breaks down the resistance if any of the team members. It is reported that Kumar Mangalam Birla got his own 360 degree feedback from his subordinates before it was rolled out to his senior team members. In an organization, it is best to start with CEO and top management levels. This is then accepted more readily at lower levels. The survey and leader development is more effective if the leaders participate voluntarily rather than being forced into action. As they say, “YOU CAN TAKE A HORSE TO WATER BUT YOU CAN’T MAKE HIM DRINK.” Hence it is important for HR to convince and build consensus.