Executive Onboarding: Setting New Leaders Up for Success

Many companies follow a predictable approach to succession planning. They embark on an extensive recruiting and hiring process — often where most invest their time and effort. The board then selects a candidate to be announced at the annual general meeting or through an effusive press release, highlighting their "exceptional record of growing sales while running a large division of a multinational company." And so, the new executive shows up to work with the hopes and expectations of all stakeholders on their shoulders, employees included.

However, about 10 months later, a troubling reality sets in as the newly appointed executive either resigns or is deemed grossly unsuited for the company. Their tenure ends in failure.

This scenario is far too common and underscores a critical oversight in the executive hiring process: inadequate onboarding. Companies invest heavily in identifying and attracting top talent, but too often they neglect the essential next step — setting these leaders up for peak performance once they are in the hot seat.

Why Is Onboarding Vital?

Executives have extensive experience and milestones under their belt. Because of this, many people in the company tend to “leave them to it”, assuming they don’t need the same support offered to other new hires. But even the most qualified and promising executives are still newbies who can falter. According to research from the Corporate Executive Board, 50% to 70% of executives fail within the first 18 months of promotion.

This high failure rate can be attributed to several common pitfalls. These include poor strategic choices, lack of support from the board and senior leadership, and a disconnect between their capabilities and the company’s expectations which are often not clearly outlined.

While external hires deal with the steep learning curve of understanding the company’s culture, processes, and key stakeholders, many of the mentioned challenges also affect internal hires who are familiar with the company and its operations.

Thus, a tailored onboarding process must be designed to fill any form of executive leadership gaps.

The Key Components of a Successful Onboarding Program

To design a good onboarding program, there needs to be these three parts:

• Preboarding — before the leader assumes their new position.
• The initial integration where they are introduced to expectations, objectives, and company culture.
• Ongoing support and development.

1. Preboarding Activities: 1–2 Months Before Start Date

Executive roles come with a lot of responsibility, and yet, new leaders are expected to hit the ground running without prior preparation. Ensuring a smooth transition should begin well before the executive’s first day. In fact, one survey by the Aberdeen Group showed that 83% of the highest-performing organizations began onboarding new hires prior to their first day on the job.

In this stage, the organization should set the stage by identifying key objectives for both the company and the executive’s tenure, defining primary goals for the first few months, and establishing a detailed timeline for onboarding activities. For this, key stakeholders such as board members, senior leadership, and direct reports should be engaged to establish a rapport.

In other words, the new executive should not go in blind. The preboarding stage should give them a good understanding of their new role and the organization’s intricacies.

2. Initial Integration: The First 90 Days

Even the most seasoned leaders need a clear road map for the uncharted territory ahead of them, and a precise compass to boot. This involves providing them with a detailed description of the executive’s role and responsibilities, establishing the short-term and long-term performance goals that will guide their efforts and measure progress, and ensuring the leader understands the company’s expectations regarding performance, behavior, and contributions.

The company should also facilitate opportunities to build relationships with colleagues and key stakeholders through formal and informal events like team buildings and company-sponsored social gatherings. Apart from fostering camaraderie, such activities facilitate the executive's understanding of the company's culture.

3. Ongoing Support and Development: At Least One Year

Mentorship and coaching programs help new executives develop key skills and navigate the challenges of their new positions. Even prominent figures like Bill Gates, Oprah Winfrey, and Jim Yong Kim, the former president of the World Bank, have sought guidance and coaching in their leadership roles.

The ideal mentors would be individuals who have held similar positions or have faced similar challenges as the new leaders. During these interactions, mentors can share their experiences and offer valuable advice that helps the mentees gain confidence in their new roles and become more effective.

Speaking of effectiveness, a structured performance evaluation plan is also important as it helps new executives track their progress and address any issues that may arise. Just like they would with a junior hire, the company should schedule regular check-ins and formal performance reviews at key milestones such as 90 days, six months, and the one-year mark.

Takeaway: Leadership Is a Collective Responsibility

So, who shoulders the responsibility for the executive? Well, successfully onboarding new executives is a joint effort requiring active participation from human resources, the company board, and existing leadership.

A well-defined and supportive onboarding process, guided by an engaged board and committed leadership team, greatly enhances the new executive’s experience and sets them up for success.