The average lifespan of a CEO continues to decline in the demanding and dynamic business environment today. According to the Harvard Business Review, 2 out of 5 CEO’s fail within the first 18 months on the job. In the past two decades, 30% of Fortune 500 CEOs have lasted less than 3 years. Top executive failure rates are as high as 75% and rarely less than 30%. Chief executives now are lasting 7.6 years on a global average down from 9.5 years in 1995.
Why? The major reason for the failure has nothing to do with competence, or knowledge, or experience, but rather with hubris and ego and a leadership style out of touch with modern times. This is what the research says from numerous reliable sources. Did I strike a nerve?
A study by Kelly See, Elizabeth Wolfe Morrison, and Naomi Rothman, published in Organizational Behavior and Human Decision, concluded one characteristic of powerful and successful leaders is high levels of self-confidence. Unfortunately, the researchers say, the higher the self-confidence, the less likely these leaders are open to advice and feedback. They also make the point that powerful leaders seldom get useful feedback in their organizations. Subordinates are loath to give bad news or critical feedback, and many boards are not diligent in seeing feedback for performance improvement, particularly relationships, as important as other things, such as financial results. See and her colleagues also contend that today’s leaders are under enormous stresses. These stresses often produce anxiety, fear and physical illness, which strong leaders are hesitant to divulge over concern about judgments that may be made about their capacities or longevity.
Solution? Hire a qualified Executive Coach. Board members and peers don’t offer the candor, perspective and training a competent coach offers. No safer environment exists in which the CEO or executive can be vulnerable than with an Executive Coach. The expression, “it’s lonely at the top” could never be truer than it is today. Besides vulnerability, when a CEO begins to believe his or her own “spin” and BS, then there is another very real problem. Let me liberally paraphrase Jim Collins in Good To Great, failure to confront the brutal facts of your leadership deficits creates a path to mediocrity at best, and failure at worst. Here’s more:
John Kador, writing in CEO Magazine, argues that while board members can be helpful, most CEOs shy away from talking to the board about their deepest uncertainties. Other CEOs can lend a helping ear, but there are barriers to complete honesty and trust. Kador writes, “No one in the organization needs an honest, close and long term relationship with a trusted advisor more than a CEO.” Kador reports conversations with several high profile CEOs: “Great CEOs, like great athletes, benefit from coaches that bring a perspective that comes from years of knowing [you], the company and what [you] need to do as a CEO to successfully drive the company forward,” argues William R. Johnson, CEO of the H.J. Heinz Co., “every CEO can benefit from strong, assertive and honest coaching.”
Professional executive coaches can help leaders grow and improve performance, reduce or eliminate their blind spots and be open to constructive feedback, not only reducing the likelihood of failure, and premature burnout but also provide an atmosphere in which the executive can express fears, failures and dreams. Smart CEOs and progressive organizations now realize the value of a good CEO coach.