1. Sterling Price, Managing Director CBIZ Human Resources Outsourcing & Consulting

2.  It is a process to enhance the probability of success for a new leader  It is designed to shorten the time it takes for a new leader to make a meaningful contribution to their organization

3. By identifying and addressing:  Company culture  The unspoken rules  Communication pathways  Informal power structure

4. Institute of Executive Development Study  320 executive participants in 18 industries  Time for new leaders to become productive: 6 – 9 months  30% of respondents said it took over 9 months  Over 30% of new leaders from the outside failed within the first two years  Over 20% of new leaders from inside the company failed to meet expectations within two years

5. Interviewed 210 CEO’s and Presidents:  Failure rate of outside executives: 40% – 50%  First three months largely determined ultimate success or failure of the new leader  6.2 months before a new leader is contributing more value than he/she is using

6. Study done by a leading HR consultant, Brad Smart:  Approximate cost of new executive failure is equal to 24 times their base salary  Factors include: 1. Lost productivity of work team 2. Search fees 3. Base salaries 4. Relocation expenses 5. Signing bonuses 6. Stock options 7. Other bonuses

7.  New blood/new ideas  Candidate has a history of success  They bring different experiences to the table  Don’t have on organizational blinders  Don’t have preconceived notions about people, operations or structures

8.  Not familiar with organizational structure, informal networks of information and communication  Not familiar with the corporate culture  Not known within the company and therefore do not have established, trusting relationships

9.  Shorten the time for a new leader to contribute  Avoid costly, career limiting mistakes  Minimize staff turnover and productivity declines due to leader change  Accelerate team development between new leader and direct reports  Sustain new leader’s early success over time

10. Ideally the process begins prior to the new leader’s start date: 1. Interview stake holders:  Boss (or Board of Directors)  Peers  Direct reports 2. Documentation of data 3. Debriefing with new leader 4. Kickoff meeting with direct reports 5. Follow up:  30 days  60 days  90 days

11.  Organization’s culture  Boss’s values  Leadership traits he/she values  Current state of the business  Communication requirements  How performance will be measured  Deal breakers  Specific projects that require attention

12.  Organization’s culture  Where new leader should focus  How boss likes to be communicated with  What decisions boss likes to be involved in  How/when new leader should interact with them  What are the deal breakers in this company?

13.  Organization’s culture  What’s working  What’s not working  Where should the new leader focus be  Expectations of new leader  What should new leader know about you  What do you want to know about new leader

14. Other stakeholders who might be interviewed include:  Key customers  Key supplier executives  Key donors  Board of Trustees  Alumni association

15.  The data collected in all the interviews are consolidated into a report for the new leader  The information is put together by interview group so the new leader can easily process it  The report is not shared with anyone but the new leader

16.  Share the information collected in the interviews  Compare & contrast the data  Identify areas of concern that will require extra attention  Prepare for the direct report meeting

17.  Facilitator provides process overview  Facilitator introduces new leader  New leader’s opening remarks  New leader addresses questions, and concerns discovered during interviews  New leader and direct reports interact – questions and dialogue  New leader’s moving forward message  Closing remarks

18.  Depending upon who brought the facilitator into the organization, follow up may be appropriate  Provide basic information about how the process went  No confidential information is shared  Provide closure for the stakeholder

19.  New leader follow up is important  Ideally, these meetings take place 30, 60 and 90 days after the direct report meeting  Coaching centers around:  Information from one-to-one meetings  Addressing the critical issues identified in the interviews  When reality differs from expectations  What adjustments need to be made

20. The time frames provided below are approximations, depending upon the number of interviews required Interviews2 – 3 days Documentation1 – 2 day Leader Debriefing1 day Direct Report Meeting.5 days 30 day Follow Up.5 days 60 day Follow Up.5 days 90 Follow Up.5 days

21. Sterling Price Managing Director Human Resources Outsourcing & Consulting CBIZ Human Capital Services One CityPlace Drive, Ste. 570 St. Louis, MO 63141 Direct: (314) 692-5863 | Cell: (636) 699-6641 Email: sprice@cbiz.com