How to Create A Culture That Prevents Executive Derailment

When you conduct objective benchmark meetings, your company creates a culture that prevents executive derailment instead of trying to correct the derailment. I'm a firm believer that companies should have a 360 process on an annual basis for all of their managers and executives to make sure how they're doing. A 360 degree assessment is like going to your doctor for an annual checkup. The old adage is true that an ounce of prevention is worth a pound of cure.

If a manager can see that an executive is derailing and get help to them early, then there is a higher probability that the behavior without can be corrected without significant damage to the organization, the culture or the individual's executive’s brand. Benchmarking with 360 degree management surveys and Web surveys is not that expensive to do. A company can begin with an outside source and after a while the managers can be trained to give the feedback.

Another pet peeve. Companies have a tendency to change their 360 degree feedback survey test on an ongoing basis. Typically a new HR person comes in or the manager hears of a new 360 and changes it. I'm not a big believer in changing which test you use, but I am a big believer in finding one that really works for the company and using it at least two or three times. Every time you change the 360 degree feedback survey you're starting off with a new baseline. If the managers keep switching the survey tools then the company won’t be getting any longitudinal data.

Getting the Prodigal Executive Back On Track

While almost all the companies use external coaches, especially for the C-level suite like CEO and CFO, about 60% were now using internal coaches. “External coaches often are used to ‘save’ an executive from failure when it's too late: like closing the barn door after the horse has already gone.” (McDermott, Levinson and Newton: “What Coaching Can and Cannot Do for Your Organization,” Human Resource Planning, June 2007).

According to a study of 55 large companies (95% with annual revenues of more than $1 billion), organization that address derailment risks through the greater use of internal coaches report positive outcomes.

The study went on to conclude that “using internal coaches in derailment cases, in contrast, may signal that the company takes performance issues seriously and is willing to invest the time of its own people, not just dollars, in supporting an employee's efforts to improve.” Never sell yourself short as an internal coach, because you may be better positioned to leverage other company resources and people to help solve the issues that led to derailment.