Why do such a high percentage of new executives fail to achieve expectations? In this article, Tim Ruef suggests looking past the obvious explanations. The root cause might just be the lack of a good executive integration plan.

1. Integrating the New Executive: Show a Little Love and Get Her Connected
By Tim Ruef, President, Ruef & Associates LLC
Janet called the day before she resigned. A senior executive at a major pharmaceutical company in New
Jersey, she had joined the firm only two years before. “I suppose I thought they would just do a little
more to make me feel welcome,” she said. “There was so much ‘romance’ during my recruitment. Then
all of a sudden it was ‘sink or swim’ when I walked in the door. I buried myself in work just like always,
but it didn’t work here,” she went on. “The culture was just too different. I eventually set up internal
networking meetings, but it was too little too late.”
Unfortunately, similar scenarios are all too common among executives placed at major corporations.
Numerous surveys have found that between 30 percent and 50 percent of executive appointments end
in termination or resignation. The impact on the individual is significant. It's costly for the organization,
too. In research conducted in 2004, Bradford Smart, author of the book Topgrading, showed that “mis-
hires” in the salary range of $100,000 to $175,000 cost companies an average of 15 times their base
salary. His earlier research showed that company costs for mis-hires for positions such as a vice
president, president and CEO are even higher as the salary of the hired executive escalates. So why do
such a high percentage of new executives fail to achieve expectations? Looking past obvious
explanations, such as bad hiring, ineffective hiring managers and ill-defined job responsibilities, the
cause might be the lack of a good executive integration plan.
Integration Plan?
As it turns out, very few organizations have any type of executive integration plan. Michael Watkins,
founder of Genesis Advisors and author of The First 90 Days, believes that “surprisingly few managers
receive any training in how to transition into a new organization, diagnose the company, and align
strategy and skills.” And even if the organization has an executive integration plan, it might be
worthwhile to gauge its effectiveness periodically. RHR International in Wood Dale, Ill., conducted a
study that found that only 39 percent of more than 100 executives, from senior managers to CEOs,
interviewed over a two-year period were satisfied with their organization’s efforts to integrate
them.Effective integration is fast integration that, in turn, leads to increased productivity and cost
savings. Watkins estimates that it takes mid-senior managers an average of 6.2 months to reach a break-
even point, or the point at which their contribution to the organization begins to surpass the company’s
costs of bringing them on board. “Anything you can do to shave the transition time is going to make a
difference,” says Watkins. “Reducing the ‘ramp up’ by even one month can mean a bundle.”
First Steps to Assimilation
So what can HR professionals do to help quickly maximize the potential of a new executive? It all begins
with a good integration plan. This should not be confused with an orientation program, however, which
is typically a one- to two-day activity focused on filling out benefits enrollment forms, touring the
facility, and understanding company history and values. Executive integration should be a purposeful
program tailored to individual needs and designed to assimilate a newly hired manager or executive
effectively over a matter of months. If, like many companies, your organization doesn’t have a workable
plan, the most important things are to get started and keep it simple. Establish a timeline for
achievements, including key milestones. Remember, too, that while the design of an integration

2. program is normally considered to be the responsibility of the HR department, the hiring manager also
must be intimately involved in carrying it out. In fact, the importance of effective executive integration
must be embraced across the company at all levels if it is to be successful.
Attitude Check: Feeling Important
When developing or updating an executive integration plan, remember that it’s crucial to make the new
hire feel important and wanted. Even senior executives want and need attention. The process of leaving
one organization for another can be an excruciating ordeal. Executives rarely arrive at their new
company without lingering doubts about the wisdom of their decision. It is critical from day one that the
new executive feel appreciated and valued at the new organization. David J. Williams, executive practice
manager for the Recruiting Roundtable, contends that one of the most important things to accomplish
during the post-offer stage (second only to communicating the importance of the job) is to “make the
new candidate feel special.” Beverly Kaye, co-author of Love ’em or Lose ’em, and Getting Good People
to Stay says it is important that the hiring manager “really connects with the new hire in a deeper way.
The hiring manager has to get to know the new hire—who the new person is and what he or she wants.
Put another way, it is important to relate to the new executive as if the recruiting process were still
happening. Managers often forget that candidates are choosing an organization, just as the organization
chooses them. And their process of evaluation goes on long after the offer letter is signed. Structuring
meetings between the new executive and the hiring manager need not be complicated or time-
consuming for the HR professional or the manager. Point out to the manager that often just taking time
out for a cup of coffee and asking how things are going will do the trick. In his book The 7 Hidden
Reasons Employees Leave, author Leigh Branham cites a lack of recognition, lack of feeling regarded as a
valued asset, and lack of regular open and honest communication as key factors that cause employees
to disengage. Sincere, regular conversations will make new executives feel as though they are being
recognized and respected and that the company is investing in their successes.
Making the Right Connections
It is critical that newly hired executives build strong intra-organizational relationships. A systematic plan
for orientation meetings with departmental and cross-functional colleagues should be set up before the
candidate arrives for the first day of work. Interestingly, while some new executives and managers will
embrace integration as a chance to fast-forward their career, others will not see a need. Remember that
the company strives to hire highly qualified, successful people who might expect that their success in
their previous firm will translate automatically to success in their new position. As with Janet in the
previously noted scenario, it is often hard for them to see the importance of understanding the culture
and politics of a new company. And HR can’t expect that they will ask for assistance. This mind-set is
reinforced if, during the initial meeting with the new executive, the hiring manager has outlined
challenges that need to be dealt with immediately. Still, be firm about the need for networking meetings
and enlist the support of the hiring manager to make sure they occur. Supervisors must appreciate that
time spent on effective integration now will greatly enhance the chances for success later.
Tim Ruef is President of Ruef & Associates LLC. Tim can be reached at truef@ruef-associates.com.