Today, every leader is in the line of fire and no leader is suited to be best qualified… by experience or temperament…under all conditions, especially in these asymmetrical times.

The high turnover of CEOs in public and private equity sponsored companies reflects current conditions: market dynamics, changing customer preferences and adjusting for risk of global disruptions… all within an accelerating velocity of change.

Clearly, investor patience is short and unforgiving. Leaders must deliver on strategic priorities and improve execution to gain operating leverage…or, they’ll be replaced.

A recent study pointed out that when a private equity takes ownership of a new investment, the CEO is changed out in about 75% of the time within the first year. And, for public companies, we’re experiencing the highest turnover of CEOs in decades.

Failure to timely deliver translates to discontent and departure. Just look at Boeing, Intel, Nike, Starbucks, Unilever, CVS among many others as examples of companies that appointed new CEOs.

Defining “The Who”

Continual course changes are the norm of “The What” and “The Why.” It’s navigating “The How” that determines outcomes and today that translates for leaders to retire the “old playbook.” Leaders succeed now by embracing change and by making it stick, doing so by challenging their executives by probing, testing and questioning to identify the “gap priorities” to be addressed. They expect their executive team to move quickly and to adjust as necessary.

To execute and benchmark “The How” the successful leader won’t compromise on “The Who” …the necessary executive talent bandwidth at the ready …. retaining the most capable and by adding innovative curve bending change agents to their executive ranks. They appreciate that diverse capabilities drive value.

In our work, we advise leaders with differing challenges. One of the most vexing for CEOs though, is judging whether those on their team today are truly adaptable to meet the challenges of an unknown future. In fact, a key focus of Boards and CEOs in assessing leaders for succession is judging how those under the microscope will address uncertainty beyond the one standard deviation of today’s controllables.

To Win Now:

1-Make Talent Your Highest Priority. Establish a disciplined approach to continually upgrade your talent. The days of second and third choice leaders are over. Talent, and the culture in which you and your team make decisions, largely will define and drive meeting objectives.

2-Be Near and Farsighted. Evaluate each executive’s ability and willingness to accept complex challenges and whether impactful outcomes are achieved. As evidenced by turnover at the top, the risk of not achieving your objectives is higher if loyalty is deemed more valuable than capability to deliver “tangibles.”

3-Avoid Leadership Obsolescence. Don’t be caught off guard nor look back. Meet leadership shortfalls head-on. Effective leaders know the value of attracting, retaining, rotating and continually evaluating executives. Be prepared and move decisively to make change-outs if an executive isn’t up to the task.

4-Act As Cultural Chiropractor. There is a resistance to change in every organization. To offset “hard wiring,” evaluate whether your team is fit and culturally geared to address unforeseen roadblocks and asymmetrical curveballs. Send the message by advancing and supporting those that “get it” while recruiting others to enhance your inner circle.

No Leadership Mulligans

Tim Cook, the CEO of Apple, stated a key management skill he learned from Steve Jobs was the importance of not being married to past beliefs, a competency that Cook believes few leaders possess. Jobs was known to relish being challenged and for willingly changing if a better alternative was presented.

Presently, CEOs and Boards are being challenged to improve the process and methodology to successfully identify and recruit thoughtful, disciplined and talented individuals…those rare executives who will challenge the status quo and lead with conviction through uncertainty… solution-drivers who demand inclusive team problem-solving to enhance enterprise value.

Our message is simply: You can’t win with a less than exceptional team composed of exceptional and committed members…no mulligans! Recognize that the clock on your leadership is ticking. So, when a leadership gap is identified, view it as an opportunity to redefine “The Who” …and don’t procrastinate.

That’s when our clients trust and engage with us.