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Chairman’s Message
With shrinking global boundaries, ever-changing market demands, high customer expectations and an often volatile economic climate, executives and leaders face daunting challenges and intense scrutiny.
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Leadership: The Critical Key to Financial Success
Restoring stakeholder trust and confidence will require exceptional leadership abilities. Building the kind of leadership that is vital in today’s competitive environment resulting in high-performance global organisations is not a phenomenon that develops magically on its own.
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The Impact of Human Capital Management on Shareholder Value
Almost every company says people are its most valuable resource, but just how important is hard to say.
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Dr. Jac Fitz-enz is an internationally rec-ognised authority on human resource management and Founder and Chairman of Saratoga Institute.
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Well-Managed Demotions
Shining star. That’s how most would describe the mutual funds portfolio manager at a large financial services company.
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The Critical Importance
of Executive Integration

The new finance executive seemed perfect for the job. His resume was impeccable.
Soon after his hiring, however, there were signs that things would not play out as planned.
The executive’s straight-laced approach clashed with the laid-back attitude of most of the rest of management. Rarely did he stop to chat with others.
Some in senior management felt that this polished outsider suddenly had the inside edge to the chairman’s office. Some questioned aloud the prudence of his hiring.
It was becoming apparent to everyone that this was not working.

Some situations involving mismatched executives cannot be resolved — more care should have been taken to find the right person during the search process. But major problems can be avoided by attend-ing to important aspects of executive integration. This requires attention by both the newly hired executive and the organisation as a whole.

Outside Hiring is a Necessity
When organisations discover a lack of qualified internal candidates to fill key executive positions, it is necessary to look outside the company.
When hiring from outside, the wise organisation engi-neers a process that maximises the chances of successfully integrating a new executive. Proper management of an integration process can greatly enhance the chances of a smooth and productive relationship between the new executive and the organisation.

Key Parts of the Integration Process: Examine earlier successes and failures
One of the first steps to ensure the effective integration of an outside executive is to examine the company’s previous successes and failures. This can reveal much about organisational proclivities that enhance or detract from integration. The organisation must guard against over-looking the role that an individual plays in engineering his or her own successful integration.

Identify position specifications
Successful integration requires a realistic articulation of the needs of the position. There are many more compli-cating factors when an outsider fills a position. In addi-tion to having the job-related skills and abilities, the new executive must know how to handle additional factors.
For example, some may feel they should have gotten the position instead so a key specification will be the ability to deal with and overcome jealousy. If the current executive group is insular, will they reject an outsider? If so, the ability to integrate oneself into a group becomes an important part of the position specifications. Sometimes companies create unrealistic specifications.
An organisation that is accustomed to functioning in a resource-poor environment must avoid leading candi-dates to believe that the position is resource rich. The key is to identify aspects of the position that might not be a problem for inside executives but might require addi-tional adjustment for an outsider.

Recruit realistically
When recruiting an executive from outside, portray the situation as accurately as possible. Candidates should know what they are getting into and be aware of the risks associated with the demands of the position. Otherwise these difficulties will quickly become apparent and the resulting disappointment can doom the relationship.

Assess candidates
The assessment of candidates is especially vital. To what extent do the candidates possess the vital characteristics associated with both job-specific and integration-related requirements?
Has the candidate made previous transi-tions from one environment to another? Is there evidence the candidate has dealt successfully with jealous or sandbagging colleagues? Can he or she read different cultures and adapt behaviour appropriately?
Special and unique skills are necessary for executives to integrate themselves into a new company and it is vital that the assessment process be designed to capture the degree to which the candidate has these special skills.
Involving current executives in the assessment process can help pave the way for a smooth integration. Those who might fight with or be jealous of the individual will find it difficult to express displeasure after the fact if they were involved in the assessment process.

Announce the Hiring with some Fanfare
Before the new person starts, a number of symbolic steps can be taken to set a foundation for successful integration.
Press announcements and articles in the company newsletter about the individual can highlight how his or her background fits with corporate strategic direction. Properly done, these can generate enthusiasm and excite-ment about the new recruit.

The New Executive’s First Steps
When the new executive comes on board, he or she may understandably be anxious to quickly demonstrate competence.
This can lead to too much talking and not enough listening. But now is the time to listen and grasp the complexities of a new environment. It is vital for the new executive to overcome the understandable inclina-tion to appear especially knowledgeable.
One common error by new executives is frequent referral to how things were done in their previous organ-isations.
This can be a great irritant to a new executive’s peers. It’s important to bring the content of what was done in other places without identifying the source.
Another set of interesting dynamics typically involves the boss/new hire relationship. The individual’s boss does not want to be seen as lacking confidence in the executive so often manages in a hands-off fashion. Likewise, the new executive wants to demonstrate competence and seeks little supervision. Unfortunately, the first few months are the very time when the new hire most needs help and guidance from the boss.
In the beginning, it is important for both to work towards spending more time with each other. The boss can help the new executive interpret the culture and its implications and collect data about other people’s reactions to the new executive and discuss any needed fine-tuning.

The Orientation Period
Psychologically, orientation to the new company begins once the individual has accepted the position. There is much to learn in a short period of time. How the organisation handles initial difficulties has both real and symbolic value in helping the individual feel supported.
The new executive is also likely to experience disap-pointment over such things as available resources or the calibre of the staff. It is vital for the hiring executive to help process these circumstances in order to get past any disappointments and move forward with plans for addressing the issues.
In addition, the newcomer also needs to learn whose help or support will be vital to success. Again, the boss can be especially helpful.

Organisational Socialisation
Too often, companies stop thinking about the integration after a month or two of orientation. For ultimate success, a longer-term process known as organisational socialisation must take place. This phase of executive integration is the longest, most complex and most critical.
During this phase, the new executive begins to deeply understand the organisation’s culture and learns how to fit in with-out being co-opted by it. The individual must be observant, read situations carefully and make conscious observations about many social phenomena.
Frequently, executives are brought in from outside to engineer changes in an organisation’s cultural fabric. But many incoming executives make the mistake of trying to change the unchangeable. Walking the tight-rope between changing cultural norms and becoming part of the culture itself can be tricky. Finding the balance is a vital part of the art of integration.

Integration is a Shared Responsibility
The success of a new executive hinges on many factors. The acceptance of the individual, as well as his or her acceptance of the organisation and those within it should not be left to chance. Both the individual and the organisation share the responsibility for planning and effecting a successful integration effort.
A strategic approach to integration increases the likelihood for success. The process should begin even before recruitment and continue for a lengthy period after the executive comes on board. This helps to elim-inate expensive hiring mistakes and false starts, ultimately ensuring that business momentum is maintained.


With permission from RHR International Company, 220 Gerry Drive, Wood Dale, IL 60191, www.rhrinternational.com, 1.888.747.7401. Executive Insights, All Rights Reserved.
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