Key People are Expensive to Replace
And when you do replace them, you often don’t know what you’re getting. Ray Dalio, the American billionaire investor, hedge fund manager, philanthropist, and founder of investment firm Bridgewater Associates, and one of the world’s 100 wealthiest people according to Bloomberg, says that only after 18 months on the job would you even know if the new executive is a fit.
If not a fit, the cycle starts again.
In fact, here’s another statistic that should give you pause:
Estimates of outright failure in the first 18 months range from 38% to over half, and many more executives fail to be as successful as was predicted in the hiring or promotion phase.
Douglas Riddle, Executive Integration | Equipping Transitioning Leaders for Success, Center for Creative Leadership, 2016
So, add to the costs of replacement a 38 – 50 % chance that your executive search could begin anew within 18 months.
So much for the direct, indirect, and potentially even higher financial costs of ignoring the elephant. Now let’s take a closer look at the human dynamic …
The Taboo Topic of Senior-Level Stress
We all know that the response to stress is situational and highly subjective. Some people thrive under stress as long as they feel in control. Others collapse. All the executives I have known thrive under stress that would paralyze most people.
Stress that Goes with The Job
Few people understand the sacrifices you make and the price you pay for the position.
You have pressure from above and from below, with numerous stakeholders to satisfy. Boards of directors and shareholders want financial results.
Your people want engagement, an inviting corporate culture, and job security. If you don’t deliver, they’re vulnerable and unhappy.Download Article 1K Club