The current pace and scope of global change are unparalleled in human history. This dramatic upheaval is largely due to dizzying technological development that enables instantaneous global sharing of information.
Moreover, the world order established after World War II is also undergoing a seismic shift. One notable example is the United States. It has recently begun withdrawing rapidly from its leadership position in world trade, environmental protection and diplomacy; creating a vacuum that could be filled by other resurgent and increasingly assertive superpowers such as Russia or China. Profound changes such as these are impacting the global economy in highly unpredictable ways. The new normal appears to be volatility, complexity and uncertainty. There is an urgent need for leaders to successfully navigate their organizations though these uncharted waters, which teem both with unknown dangers and new opportunities. Sadly, many of today’s business leaders are unprepared for this challenge. According to academic literature, one in two business leaders is deemed a disappointment, incompetent or a complete failure. The situation is no better for executives new to their position – either external hires or those who are newly promoted; though internal promotions tend to fare better. Between 40% and 64% of new executives leave their jobs (voluntarily or otherwise) within the first 18 months of being hired. (See my post, Great Leaders: The Competency Imperative, November 2015).
The cost of replacing an underperforming executive within 18 months is enormous: approximately three times the leader’s first year salary. The cost is much higher when productivity and opportunity costs are factored in. (See my post, Why New Leaders Fail, August, 2015). While less conspicuous than financial risks and cyber threats, leadership is the single, most ominous and under-scrutinized risk facing organizations today – bar none! Ineffective leadership affects every aspect of an organization from strategic and succession planning and execution, to team building, operations, business development and corporate reputation… It can ruin even great organizations over time.
Companies take a huge risk in hiring and assessing their leaders because they can’t always predict how human beings will actually behave within a new work environment.
At the Bonar Institute, we identified the critical need for organizations to mitigate the performance risks of their leadership teams. We developed our unique Leadership Risk Mitigation Program for Management, Boards, Government, Non-profits and Entrepreneurs. This program includes innovative, leading-edge advisory tools that enable us to both identify and evaluate the capabilities of leaders and their management teams, as described below:
What we do: We evaluate the management team to determine its potential to meet stakeholders’ performance expectations…
Our approach: We tailor our process to meet the unique needs of our clients. For example, does the leader have the necessary knowledge and skill set to be successful? Does he or she have the crucial management and human relations skills? We then identify any gaps and report our findings to our client.
Discovery and Diagnostics: We conduct discovery and diagnostic sessions with relevant parties to identify and evaluate their needs and expectations, as well as the degree of risk they perceive in situations facing our client’s organisation. We supplement this phase with appropriate assessment tools: Emotional Intelligence, 360, Psychometric Tools.
Reporting and Next Steps: We present our findings and recommendations, including next steps, if appropriate. These may include: executive coaching and mentoring, leadership development and training, corporate governance, and skills enhancement techniques.
Our comprehensive approach helps organizations minimize management risks and position them for success in our highly uncertain and complex economy. Please contact us for more information on how we can help you succeed.