// Blog Grid Equal Height

– Unveiling the Challenges: Why 50-65% of New Executives Stumble in Their First 18 Months – 

 

In the corporate world, the ascent to an executive position is a career pinnacle. It’s the moment when years of hard work and expertise culminate in the opportunity to lead at the highest levels. However, shocking data from a study conducted by Ron Carucci and his colleagues reveals that a staggering 50-65% of newly appointed executives falter within their first 18 months. This failure rate is not just a matter of chance but is often a result of common pitfalls that new executives fail to anticipate and navigate successfully.

 

The Unprepared Executive

The data from Carucci’s study provides a striking glimpse into the unpreparedness of many newly appointed executives. A significant majority, 69%, admitted to feeling minimally prepared for their executive role, while only 31% felt slightly or moderately prepared. Furthermore, a staggering 76% found the formal development processes in place minimally helpful, and 45% had a minimal understanding of the challenges that lay ahead. In essence, 61% claimed to be completely unprepared for the roles they had assumed.

These statistics underscore the need for a deeper understanding of the COMMON PITFALLS that executives can avoid from the outset. Let’s delve into some of these challenges.

 

The myth of the mandate

One common trap for new executives is the assumption that their past success formula will seamlessly translate into their new roles. Whether it’s their experience in business-building, driving growth, or transforming organisations, they often believe they have a mandate to replicate their previous achievements. This belief, spoken or implied, can lead to a dangerous path of simply replicating past successes without considering the unique context and people in their new environment.

The key to avoiding this pitfall lies in conducting a comprehensive diagnosis of the current reality and the people you are set to lead. Understanding the context and the individuals involved is essential to crafting a strategy that aligns with the specific needs and challenges of your new position.

How can you carry out your diagnosis more effectively with the aim of better understanding the context of current reality and the people you signed up to lead?

 

 Turning Diagnosis into Accusation or Criticism

Another stumbling block is when the initial diagnosis of the organisation’s state turns into accusations and criticism. Newly appointed executives might be tempted to make statements like, “How have you people made money here?” or, “Nobody told me it was this bad.” Such judgments, particularly in the early stages, can alienate the very people they need to rally for support.

To overcome this pitfall, leaders should adopt a mindset of listening with the intention to understand rather than respond or criticize, otherwise, people withdraw their support an back away from the leader. This approach fosters open communication and trust, which are essential for effective leadership.

What mindset you are in during your diagnosis phase? Are you listening with the intention to understand or with the intention to respond or comment?

 

Decision Compression and Inability to Let Go

Many new executives struggle with relinquishing control over the short-term operative tasks they once managed. This reluctance to let go of micro-management can blur the boundaries of authority within the organisation, leading to bottlenecks and confusion. It’s crucial for leaders to leave behind the details as they ascend and focus on more strategic work.

To address this challenge, executives should reflect on what they need to let go of to create space for higher-level, strategic responsibilities.

What do you need to let go of in order to create space for more strategic work?

 

Intolerance of Ambiguity and Lack of Immediate Gratification

A larger leadership role often comes with increased ambiguity and a longer timeline for results. Immediate gratification, once derived from involvement in short-term outcomes, becomes a thing of the past. Some leaders struggle to adapt to this shift, grasping at what is familiar instead of embracing uncertainty and longer timeframes.

Overcoming this challenge requires embracing ambiguity and becoming comfortable with longer-term goals and abstract thinking. Leaders must find reassurance in their ability to navigate the unknown and maintain a visionary outlook. It cannot be achieved without relying on their organisation to carry out the day-to-day tasks in order to deliver.

How do you feel about, and how do you handle your inner turbulence when you are leading in ambiguity? What reassurance do you need to pursue the unknown and become more visionary?

 

 Biases About What You “Already Know”

For leaders who rise through the ranks within an organisation, there can be a bias towards what they think they already know about the company’s culture, players, and processes. This assumption can hinder their ability to see the organisation with fresh eyes and can lead to being blindsided by unforeseen challenges.

To avoid this pitfall, leaders should continually question their assumptions and seek to learn and be curious about their own organisations. Asking probing questions and remaining open to new perspectives is key to avoiding blind spots.

What makes you blindsided? What questions should you ask yourself? What questions do you keep avoiding to ask yourself? What is obvious?

 

The transition to an executive leader is a monumental step in one’s career, but it comes with its own set of challenges. The shockingly high failure rate among newly appointed executives underscores the importance of recognizing and proactively addressing these common pitfalls. By embracing a mindset of adaptability, empathy, and continuous learning, leaders can increase their chances of success and make a lasting impact in their new roles. Recognizing that leadership is not just about what you know but also about how you navigate the complex dynamics of your organization is the first step toward effective executive leadership.

 

Source: Rising to Power: The Journey of Exceptional Executives by Ron Carucci & Eric C. Hansen & World Business & Executive Coach Summit 2019, Preparing Leaders for Senior Roles of Broader Influence presented by Ron Carucci, Admission to and Transition in the C-Suite Executive Solution