1. Onboarding Leaders
Mitigating risk, accelerating performance for external leadership hires
HRPS Strategic Talent Management Forum
October 22, 2012

2. Welcome
The Context The Challenge The Discussion Q&A 1 2 3 4

3. The Context
The scope and stakes of business leadership have increased by an order of magnitude.
ExCo Executives
in the Fortune 500 and S&P 500
1990
2010
Promotions since entering workforce 1
11.4
7.1
Years per role (pre-ExCo) 1
3.6
4.4
Companies per career 1, 2
2.1
5.3
Revenue under management 1,3
$123 MM
$1.3 B
CEOs promoted from within 4
62%
77%
Connections/relationships to manage 1,5
~20
~50-70
Merryck & Co data
WSJ July , Joanne S Lublin, “CEO Tenure, stock gains often go hand in hand”
Merryck & Co data ; CNNMoney.com, Fortune 500 Statistics
SpencerStuart 2010 CEO Transitions, March 2011
Merryck & Co data, ; Booz & Company yr CEO Succession Study Retrospective

4. The Context Great leaders create much higher net income. Net Income
$4.5MM
Net Income
$2.4MM
($1.2MM)
Bottom 10% Middle 80% Top 10% Poor Leaders Good Leaders Great Leaders
Zenger, Folkman, Edinger, “How Extraordinary Leaders Double Profits”, Zenger-Folkman, Inc., 2010

5. The Challenge
Traditional leader development happens at a different pace than the VUCA nature of top job demands.
The complexity of upper echelon jobs increases exponentially, whereas a leader‘s development happens Incrementally.
The nature of dynamic problems defies predictable patterns of coaching or training.
Traditional leader development is based in case studies and scenarios – useful, but predictable
At $B-level, the primary “predictable” is unpredictability
$B leaders need to anticipate, consider and react from a VUCA perspective
The next generation of leader development will empower those with the most influence to respond with greatest perspective, understanding and impact.

6. The Challenge Leadership is a mindset, not a skillset.
A top executive’s year is defined by 8-10 problems that:
No one could anticipate– and the leader could not have been “trained” for
Require quick, decisive responses
Will require multiple levels of near-simultaneous relationship management
Integration to a new organization adds an additional layer of ambiguity and complexity to that baseline challenge.
“When a new leader comes in with fresh thinking, we’ll say to him, ‘That’s a really great idea!’ Then he’ll leave the room and we’ll say to each other, ‘Who does he think he is?’.”
– EVP HR, $30B financial services organization

7. The Challenge The situation in a nutshell:
External hires face the steepest learning curve of all – they must fast- track into a culture as well as a role.
Few top execs want training anyway – they are smart, accomplished, savvy…they need an increased capacity -- a means to draw upon a greater depth of experiences than they have personally faced.
No standard training exists to prepare for today’s top roles…the magnitude of the job is bigger than any one executive.
The stakes have increased by an order of magnitude in one generation…and the needle continues to point up.

8. The Conversation
The right integration of an external leader increases Leadership MagnitudeTM at the same time it ensures effective retention.
Leadership MagnitudeTM expands perspective, influence and impact across the full reach of an organization.
Executive
Handling unprecedented complexity, pace and volatility
Company
Effecting change throughout the chain of management – from BoD to shop floor
Marketplace
Expanding influence throughout investor, customer, supplier and partner relationships

9. Conclusion 1. 2. 3.
In a VUCA world, every company faces increasing pressures to ensure external leaders join, stay, and fast-track their contributions.
Complexity, stakes and relationships have grown by orders of magnitude – we need to foster a complementary growth in Leadership MagnitudeTM.
For external hires, it’s not enough to have an onboarding plan. There must be a parallel integration plan that ensures the leader’s ability to create meaningful impact.

10. Conclusion “
Everything I got from my Merryck mentor I could have learned on my own...if I could have lasted long enough in the job to learn it.
– Current client, PE-owned company, June 2012 ”

11. Who is Merryck?
Over 15 years, Merryck has become the proven global vehicle for delivering Leadership MagnitudeTM
Mentoring 1-on-1 with a former C-level executive who:
Has run a $750MM - $120B P&L
Is trained in-depth to support with questions and perspective — not to take on the job
Is up to speed on the company’s issues and the executive’s dynamic role
Is chosen for ability to identify strengths, and define and help develop the blind side

12. For further discussion:
David Reimer, Chief Executive Officer MERRYCK