2WelcomeThe Context The Challenge The Discussion Q&A1234
3The ContextThe scope and stakes of business leadership have increased by an order of magnitude.ExCo Executivesin the Fortune 500 and S&P 50019902010Promotions since entering workforce 111.47.1Years per role (pre-ExCo) 13.64.4Companies per career 1, 22.15.3Revenue under management 1,3$123 MM$1.3 BCEOs promoted from within 462%77%Connections/relationships to manage 1,5~20~50-70Merryck & Co dataWSJ July , Joanne S Lublin, “CEO Tenure, stock gains often go hand in hand”Merryck & Co data ; CNNMoney.com, Fortune 500 StatisticsSpencerStuart 2010 CEO Transitions, March 2011Merryck & Co data, ; Booz & Company yr CEO Succession Study Retrospective
4The Context Great leaders create much higher net income. Net Income $4.5MMNet Income$2.4MM($1.2MM)Bottom 10% Middle 80% Top 10% Poor Leaders Good Leaders Great LeadersZenger, Folkman, Edinger, “How Extraordinary Leaders Double Profits”, Zenger-Folkman, Inc., 2010
5The ChallengeTraditional 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 predictableAt $B-level, the primary “predictable” is unpredictability$B leaders need to anticipate, consider and react from a VUCA perspectiveThe next generation of leader development will empower those with the most influence to respond with greatest perspective, understanding and impact.
6The 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” forRequire quick, decisive responsesWill require multiple levels of near-simultaneous relationship managementIntegration 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
7The 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.
8The ConversationThe 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.ExecutiveHandling unprecedented complexity, pace and volatilityCompanyEffecting change throughout the chain of management – from BoD to shop floorMarketplaceExpanding influence throughout investor, customer, supplier and partner relationships
9Conclusion1.2.3.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.
10Conclusion“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”
11Who is Merryck?Over 15 years, Merryck has become the proven global vehicle for delivering Leadership MagnitudeTMMentoring 1-on-1 with a former C-level executive who:Has run a $750MM - $120B P&LIs trained in-depth to support with questions and perspective — not to take on the jobIs up to speed on the company’s issues and the executive’s dynamic roleIs chosen for ability to identify strengths, and define and help develop the blind side
12For further discussion: David Reimer, Chief Executive Officer MERRYCK