The Executive On-Boarding Program
A recent study by Harvard Business Review identified that 54% of newly hired executives fail within 18 months. This results in missed opportunities and substantial lost revenue. A study by Bradford Smart, "Top Grading" states that the cost of turnover runs 40 times the executives base salary: at a base salary of $200,000, the financial impact to an organization is on average $8,000,000.
The real cost of a failed executive is all the direct and indirect costs – loss of revenue potential, client impact, performance and productivity loss, cultural disruption, and retention of other employees. In a study by the SHRM Foundation, about 500,000 managers take on new roles each year in Fortune 500 companies. The financial loss to Fortune 500 companies represents over two billion dollars annually.
The SHRM study also states that more than 80% of new hires decide whether or not to leave or stay with a company within the first six months of being hired. For many companies the 'sink or swim' strategy is costly.
On-Boarding is critical to the success of the new executive, the company and all stakeholders (other members of the executive team, direct reports, and clients). Smart companies that invest in formal on-boarding programs experience:
The Prince Leadership Group, specialized in on-boarding and has developed a 12 step program to address these critical business issues. The program is designed to accelerate the On-Boarding process of key executive hires and their impact on revenue. The benefits of this program include:
Executive on-boarding differs from traditional on-boarding in several ways:
All executives affect the firm’s bottom line. At Prince Leadership Group, Our mission is to help certain newly hired executives favourably impact the bottom line quickly and add value immediately. A talent development strategy that involves executive coaches for both external new hires and internally promoted executives will minimize turnover, maximize impact, shorten the time to productivity and ensure successful assimilation into a firm’s culture.
To cut to the chase, we are your ‘accountability partner’. Our relentless focus will accelerate the on-boarding process to ensure a faster ROI for all stakeholders. Planning for success? Contact us!