Top End Turnover

Corporate Executives are on the move…..out the door. CEO turnover increased by 50% in 2007 compared to the previous year. Nearly a third of the departures were against the CEO’s will. The average tenure of CEO’s is down almost 25%. Tradition reasons accounted for some of the terminations but non-traditional reasons accounted for majority of departures. Turnover was highest in the telecommunications industry and financial services businesses. It should also be noted that this group also includes companies involved in the sub-prime meltdown.

In a separate survey printed in the Philadelphia Bizjournal (October 26-November 1, 2007), the CEO’s were asked to rate their own strengths and weaknesses with the following results:
Ranking

Strengths Weaknesses
Vision 1 6
Sales and Marketing 2 (tie) 5
Product Innovation 3 3
Managing People 2 (tie) 4
Information Technologies 5 2
Financial Strategies 4 1

It appears that the CEO has the vision but doesn’t always get there. I question whether or not the CEO has created a “dashboard” for himself that reflects both strengths and weaknesses and is using metrics to formulate benchmarks and to consistency re-evaluate his plan of action and implementation process along the way. It seems like many CEO’s are stuck when it comes to both the planning and implementation process. The statistics tell me that the CEO has a strong sense of awareness but for some reason the plan and implementation process are not giving the CEO the desired results.
I wrote a previous Blog on the formation of “dashboards” and this data tends to lend credence on the fact that CEO’s may not be focused on not only the “things that matter most”, but also don’t measure and monitor the metrics or trends that define the success of the organization. It could also relate that other key members of the executive leadership team are focused on the results that their departments contribute to the overall success of the organization. Sounds like our alignment with strategic objectives must be off or even non-existent. IF the disconnect occurs between the CEO and the people who work in the organization, then the end result is a “disconnect” between the CEO and the Board of Directors resulting in termination or resignation. Basically, we are back to the old adage, “Is it the People or the Process?” You can blame it on one or the other, but it is usually a combination of performance and people resulting in an ineffective process of measurement.
CEO’s better learn how leading companies measure performance and offer a goal and results-oriented culture. Ok, CEO’s, “Start your engines, monitor your dashboard, and stay focused on the finish line”…