How have your previous experiences as a senior HR executive informed your coaching?
I am indeed in a very privileged position, given that I have worked for over two decades in Human Resources. I have both observed and actively participated in developmental discussions and global talent reviews, so I know from the inside out what it takes to grow and be promoted into C-suite roles.
As a Coach, you have won many accolades, and you are the only two-time winner of CEO Today Executive Coaching Awards. Can you tell us more about your coaching practice?
I have been coaching professionally for over a decade. And it's been over a year since I decided to dedicate myself fully to the practice of coaching. As a coach, I have a very narrow focus and I work with clients in two expertise areas: Mastering Executive Career Transitions and Maximising Leadership Impact for Individuals and Leadership Teams.
Next to being a successful executive coach, you are also an international bestselling author. Can you tell us more about your book?
My book, titled Mastering Executive Transitions Ð The Definitive Guide, is published by New Degree Press in New York and is available as an Ebook, Paperback, Hardcover and most recently, as an Audiobook. The book was an immediate #1 new release on Amazon, followed by its recognition initially as a national bestseller in the US, before becoming an international bestseller. This genuinely surprised me and my publisher.
The book is jam-packed with insights as to why 40% of all executive transitions fail and provides a guided framework named The Double Diamond Framework© of Executive Transitions, which is delivered in a practical editable PDF format as a workbook. The workbook enables the executive, their HR partner and/or their executive coach to apply a structured and proven framework to executive transitions. Whilst the book has won accolades in the realm of thought leadership, I have always been a fan of offering a hands-on and practical approach to guide high-stakes executive transitions. As someone who's spent most of their career in large organisations, my aim is to provide accessible and actionable insights to executive leaders.
Our magazine has a deep focus on CEOs. How would a CEO benefit from transition coaching?
I'd like to cite an Egon Zehnder study that unveiled a surprising revelation: a staggering 70% of CEOs either find their onboarding process lacklustre or, worse, non-existent. This statistic paints a disconcerting picture, suggesting what would likely satisfy nearly 99% of regular employees in an organisation falls far too short when it comes to the onboarding of top-tier executives.
In a separate study, the Aberdeen Group delved into the onboarding procedures of 282 different organisations. The results illuminated a striking disparity between those adept at onboarding and the lagging companies that comprised the bottom 30%. The top 20% of companies that are designated as best-in-class stood out significantly across vital performance benchmarks:
¥ A remarkable 96% retention rate among first-year employees, in stark contrast to the meagre 18% seen in laggard organisations
¥ A notable 82% of employees hired in the past year achieved their initial performance milestones on schedule, a stark contrast to the paltry 3% in laggard companies
¥ A significant 18% year-over-year enhancement in hiring manager satisfaction, in comparison to a 1% decline among their lagging counterparts
¥ A substantial improvement of 12% in customer satisfaction and a commendable 10% increase in customer retention, compared to a mere 2% uptick in each category within laggard organisations.
So, clearly, optimising CEO onboarding and transitions not only holds tangible and quantifiable benefits, but it also stands as a crucial component of commercial success for an organisation.
What are, in your view, the ripple effects of getting CEO transitions wrong?
I'd like to cite another study conducted by the Corporate Executive Board (CEB), which delves into the far-reaching impact of high-impact leadership transitions. Drawing from an extensive pool of over 30,000 executive leader transitions and fortified by numerous revealing executive leader interviews. The research illuminates a compelling narrative.
What emerges as a striking revelation is that when a transitioning executive leader faces challenges, their direct reports tend to underperform by an average of 15% compared to those under the guidance of a high-achieving leader. This stark performance differential underscores the tangible repercussions associated with unsuccessful transitions.
Digging deeper into the dynamics, the study also uncovers a statistically significant 20% contrast in the likelihood of direct reports of high-performing leaders versus those of struggling transitioning leaders being highly engaged or remaining within the organisation. These disparities extend beyond the immediate team, affecting executive peers relying on the transitioning leader and generating additional business opportunities. The ripple effects of executive transitions thus take on amplified significance.
The CEB study unveils another compelling statistic: A typical large organisation boasts an average of 70 senior executives. Given an annual replacement rate of approximately 12%, this translates to an annual turnover of eight senior executive transitions. Remarkably, and despite this predictable pattern, many organisations approach CEO transitions with a mindset of mergers and acquisitions. This parallels the
well-known pitfall of ineffective post- merger integration in M&A scenarios. In a similar vein, most executive transitions falter due to a lack of effective 'integration' of the CEO into a new role.
Put differently, what would be the upside of getting CEO transitions right?
Leading organisations grasp the profound ripple effects, both positive and negative, and choreograph a meticulously structured CEO transition process, often bolstered by external support. This process leverages internal resources and deploys innovative tools and systemic approaches to guide the newly appointed CEO through an impactful transition.
Extensive research has diligently probed the advantages of effective onboarding and executive transitions, typically concentrating on the benefits accruing to the transitioning CEO. However, the advantages extend across three distinct stakeholder groups, each warranting detailed exploration.
Benefits for the CEO
A successful transition has been empirically demonstrated to curtail the risk of derailment by as much as 50% (Wheeler 2009). An orchestrated and supported CEO transition simultaneously mitigates critical transition hurdles and associated perils, resulting in heightened role satisfaction for the CEO.
Equally noteworthy is the rapid attainment of baseline productivity levels, a phenomenon well-documented in numerous studies. These findings underscore an accelerated transition, often up to 50% faster than peers who lack structured transition support. Moreover, it becomes evident that fruitful CEO transitions yield dividends in uncharted territories, such as propelling the CEO towards an enhanced likelihood of an internal or an external promotion following one or more successful transitions.
Benefits for the Organisation
The most obvious benefit lies in the reduction of high-stakes placements and the subsequent cost entailed by misjudged hires. Executive level mis-hiring carries a substantial financial burden, estimated at a staggering up to 30 times the executive's salary.
Research by the Corporate Executive Board (CEB) further demonstrates that successful CEO transitions forecast a remarkable outcome: 90% of leadership team members led by CEOs who navigated successful transitions go on to achieve their three-year performance objectives. Within these teams, attrition risks decline by 13% compared to counterparts. A prosperous transition signifies the organisation's skilled utilisation of the CEO's unique talents and potential, serving as a potent testament of its commitment to executive development.
Furthermore, when a new CEO is tasked with reshaping the organisational culture, a structured transition facilitated by an executive transition coach proves instrumental in fostering the adoption of a new, supportive organisational culture and leadership ethos. It also lowers organisational mistrust by sending a signal of proactive and thoughtful leadership.
Benefits for the Stakeholders
The RBL Group, a prominent human resources consulting firm, unveiled compelling findings in their 'Leadership Gap' study, surveying 430 portfolio managers and institutional investors. This research underscored the top three investment criteria: company performance (38.5%), industry favourableness (33.1%), and leadership quality (28.4%).
Notably, the study also assessed the confidence levels of the same investors in evaluating these criteria. The lowest confidence intervals surfaced in assessing leadership quality, registering at 3.75 or a standard deviation of 0.96, in contrast to 0.58 for company performance and 0.66 for industry favourableness. This disparity highlights investors' diminished confidence in appraising leadership quality.
Effectively onboarding a CEO and minimising the risk of derailment are integral facets of what constitutes leadership quality. These findings provide a nexus linking financial investment decisions to companies and their executive transition processes.
Another apparent benefit stems from the collective impact of a high-performing CEO, their leadership team, and the organisation. This synergy exudes confidence to the management board and investors alike. It underscores how better alignment between organisational strategy and cultural execution can elevate employee engagement and enhance overall business performance.
Last but not least, successful CEO transitions serve as a springboard for engaging external stakeholders in a thoughtful manner. When examining the expectations of younger generations from organisations, it becomes evident that a lot of these factors are not merely 'nice-to-haves' but genuine 'must-haves'.
What does this award mean to you?
To begin, I must express my genuine gratitude. Knowing that I am the only two-times winner of this award means a lot to me. And much like the recent acknowledgements as HR's Most Influential Practitioner, winning the Outstanding Leadership Award or being named a 100 Most Iconic Coaching Leader, it is both a humbling and gratifying experience to witness one's efforts being acknowledged. I extend my heartfelt gratitude for the award and anticipate cherishing it in the years ahead. Yet, it is essential to underscore that my truest reward lies in witnessing the flourishing of my coaching clients and their attainment of transformational results, often seen as insurmountable prior to our engagement.
How do you measure success when it comes to coaching your clients?
My coach training has ingrained a singular belief about the true measure of success. It hinges entirely on the feedback from the client, their line manager and their direct reports. Regardless of our self-perceptions as coaches or the level of competence we attribute to ourselves, these factors hold ultimate significance.
What do you expect the remainder of 2023 and the coming year will hold for your executive coaching practice and your continuing professional growth?
Last year I moved with my family to Dubai, U.A.E. to dedicate myself full-time to my coaching practice (Navid Nazemian Executive Coaching FZCO) and to continue to serve clients globally.
I am particularly thrilled about a novel offering I've crafted called Peer Group Transition Coaching. The inspiration for this innovative approach stems from interactions with numerous 1:1 executive transition clients who have expressed a longing for a safe space to deliberate over their transition quandaries and dilemmas among trusted peers. As you're aware, being an executive in transition can be remarkably isolating. There are times when, for various reasons, sharing dilemmas with functional peers, supervisors, or team members feels challenging, and the prospect of a year-long, one-on-one executive coaching program might not align with the aspirations or the available budget in an organisation.
This is where Peer Group Coaching, a tried-and-true method, presents an extraordinary opportunity for meaningful engagement among peers. Peer Group Transition Coaching serves as a structured, facilitated dialogue within small peer clusters under my guidance as an expert coach. In essence, it seamlessly merges coaching and mentoring with the infusion of thought leadership. Within this peer setting, each executive embarks on a journey of self-reflection, addressing personal dilemmas and hurdles while benefitting from diverse perspectives offered by fellow transitioning peers, all guided by me.
That sounds rather intriguing - can you tell us more about this new format? What topics may executives bring to this format?
Within the framework of Peer Group Transition Coaching for Executives, the scope of reflection extends to a range of pertinent professional transition topics:
1. Delving into the reasons why executive transitions are simultaneously challenging and exhilarating
2. Navigating the pathway to circumvent the most prevalent missteps encountered during executive transitions
3. Thoughtfully contemplating interactions with pivotal stakeholders, including your line manager, peers, and ExCo/board members
4. Immersing in the exploration and acquisition of tried-and-true strategies for achieving a seamless transition
5. Demystifying the process of strategy execution
The advantages emanating from this approach span across executives, the organisation, and the broader stakeholder community. A few notable benefits are:
1. Trusted peers contributing external viewpoints that stimulate innovative thinking
2. Leveraging the expertise and shared insights derived from observing fellow executives' experiences
3. Enriching the collective knowledge of the entire group across the multifaceted landscape of executive transitions
4. Cultivating robust partnerships that foster collaborative action beyond departmental boundaries
5. Skilfully guided by a thought leader specialising in executive transitions, ensuring facilitation of the highest calibre
And how does this format work?
This is an exclusive and strictly confidential collective comprising diverse individuals who share a common purpose. Each group is meticulously crafted, ranging from a minimum of three to a maximum of six members. As members, individuals gain privileged access to my exclusive executive transition video series.
Our emphasis lies in constructing groups that encapsulate a rich tapestry of diversity and seniority, ensuring a profound collective impact.
The program spans four Peer Group Transition Coaching sessions, thoughtfully distributed over six months, with each session lasting 1.5 hours. The dates are thoughtfully pre-arranged to accommodate pivotal company events. Each session revolves around the innovative Double Diamond Framework© of Executive Transitions and features the presentation of a dilemma or transition challenge, thoughtfully shared by one or two of the group members.
Additionally, each participant enjoys an individual alignment call before embarking on the very first group session. These sessions are typically conducted face-to-face (virtual options available upon request), culminating with a congenial social lunch or dinner designed to facilitate peer networking. The location of these gatherings is meticulously tailored to the preferences of the client, taking place in their city of choice.
One of the program's most valuable aspects includes four one-on-one mentor coaching sessions per member, thoughtfully scheduled after each group session. These sessions are designed to deeply embed acquired knowledge and skillfully address the distinct and individual challenges that each member may encounter on their journey.
How do you maintain confidentiality in such a setting?
Within the group, our information-sharing ethos revolves around the bedrock principle of strict confidentiality. Each member will be required to formalise their commitment by signing a Non-Disclosure Agreement (NDA). This proactive measure ensures the utmost integrity and safeguarding of the candid peer coaching conversations that take place within our trusted group.
