Manage risk through New Hire Coaching
Two out of every five new CEOs fail in the first 18 months & 64% of new executives hired from outside the company will fail at their new jobs (HBR, January 2005)
40% of new leaders fail to meet expectations of management in their new role (Right Management survey of 826 HR directors, 2003)
When newly recruited, the following types of executives experienced the highest failure rates within the first 18 months:
- Senior-level executives 39%
- Sales executives 30%
- Marketing executives 25%
- Operations executives 23%
The primary reasons they found for failure in the new job:
- They fail to establish a cultural fit 75%
- They fail to build teamwork with staff and peers52%
- They are unclear about what their bosses expect 33%
- They don't have the required internal political savvy 25%
- There's no process to assimilate executives into the firm 22%
Dan Ciampa and Michael Watkins in Right from the Start (Harvard Business School Press, 1999)
A Manchester Consulting Group study of Fortune 100 executives found that coaching resulted in an ROI of almost six times the program cost.
An International Personnel Management Association survey found that productivity increased by 88 percent when coaching was combined with training (compared to a 22 percent increase with training alone).
A study of a Fortune 500 telecommunications company by MetrixGlobal found that executive coaching resulted in a 529 percent ROI.