The Problem With Revolving Door Leadership

Frequent turnover is a problem at any level, but when offices in the C-suite have revolving doors, it can be devastating for an organization. A recent article in the Greater Baton Rouge Business Report looked at the revolving door at many of the state’s private and public colleges and universities; it found that almost 20 percent of private colleges saw a change in leadership, while almost 25 percent of public institutions did.The revolving door is a problem — and one that can be stopped. Here’s what you need to know.

Why Does It Happen?

No one wants a revolving door at the top. Finding new leaders takes time and money, and getting them up to speed in their new position can take months, especially if they’re new to the organization. Some of the reasons organizations make hasty decisions about new leaders include:

• Crisis situations. A leader may have a sudden change in fortune or health and wants to leave the position. The board or other leaders may uncover malfeasance that requires an on-the-spot firing. The organization may be facing a critical time, and the current leader may decide that they’re just not the right person for the position. These situations make it easy for unprepared organizations to react with fear and haste to fill the position.
• Poor vetting process. An organization’s recruiting process should reflect its mission and values. If it doesn’t, it’s likely to find people who are a poor fit for the organization. Boards and hiring managers must ensure that leaders they bring on board are an embodiment of the organization’s values and mission.
• Lack of succession plan. While succession plans can help provide a roadmap through times of leadership crisis, many organizations simply haven’t put the time or effort into preparing one.

Business Risks From Frequent Turnover

Turnover at the top isn’t completely avoidable. After all, every leader will move on or retire at some point. The issue is that organizations that don’t have a plan for leadership change may make hasty decisions without carefully screening candidates for fit. When there’s no plan to follow, leaders may act without considering possible outcomes or how their decisions will affect others. Organizations that mostly react find it hard to innovate and grow.In addition, employees who work at organizations that mainly react to changes instead of planning for them may feel less confident about their employers. Trust levels may fall, as well, as employees don’t know what to expect from leaders.

How to Stop the Revolving Door

Getting the right leaders in the right positions — and ensuring they’ll stay — takes work from an organization’s board or leadership team. Here’s what it takes:

• Uphold your values. Organizational values can’t simply be a few words that are written down and then forgotten. Values should serve as signposts to remind leaders (and employees) what the organization stands for and how it acts. The same goes for its mission.
• Apply those values. The hiring process is always more effective when it’s infused with the organizational values. The board or leadership team can use the values as a guide to determine the kind of leader they’d like to bring on board.
• Establish a succession plan. Not only will a good succession plan identify who your organization’s next leaders are, it will help them be ready for the position when the time comes. Developing leaders so your organization has a deep bench will help ensure it’s ready for almost any leadership change, whether expected or not.

Looking for ways to stop the revolving door at the top? Contact us; we can helpSuccess Labs is a leadership development and management consulting firm in Baton Rouge, Louisiana. For more than 25 years, our expert team of consultants has worked with hundreds of companies to explore their business potential and improve their company and cultural performance. Contact us to get proactive about your people strategy.