Intelligence Archives - Page 6 of 6

We’ve had numerous opportunities over the years to conduct searches for executives who will be replacing a retiree, or soon-to-be retiree. The process of retiring can be awkward for both the retiree and the company. As is true with most things in life, there are no absolutes, and every organization must determine the best plan for everyone involved.

Not surprisingly, when exiting executives can’t wait to hit the door—whatever their reasons—it makes for a crisp transition. Conversely, when retiring executives don’t have a plan for their new life in retirement, or worse, they don’t want to retire, the change of control can be difficult for everyone, at both a professional and a very personal, emotional level.

Timing

No two clients handle the setting of an executive’s retirement timetable in the same way, and we hear strong opinions about timing formed through experience in the trenches.

Two weeks? Too fast. Executives tell us that there simply is not enough time to even learn what questions to ask, much less absorb the knowledge dump in that amount of time, even when those leaving remain available.

An extended transition, while seemingly well-intended, creates more problems than solutions.

Two quarters to two years? Too slow. Many times, an extended transition, while seemingly well-intended, creates more problems than solutions. For one, the retiring executives must continue to find ways to remain relevant to the organization and validate themselves and their (usually large) paychecks. Perhaps more critical is the impact such delays have on the troops who are uncertain about to whom to look for directives and leadership. Despite everyone’s best intentions, employees will most often pursue familiar routes of problem solving and communications until forced to do otherwise.

That said, a longer transition can help, especially when the outgoing executive is able to manage certain matters while the new executive deals with bigger issues, like getting up to speed on the organization, its business strategy, its people, and its potential needs.

Worst case? Undefined transition schedules that leave the organization in a state of limbo. A mandate for change can be made especially difficult when the creator of those policies and procedures is still around. If the trains are running on time, installing a new leader doesn’t imply wholesale change. Either way, the ambiguity creates a tightrope upon which the entire organization is perched, trying to balance potentially competing loyalties, questions about authority and chain of command, and employees’ uncertainty about their own future vis-à-vis the organization and their new manager.

Undefined transition schedules leave the organization in a state of limbo.

Just right. We have found some consensus indicating that a one- to two-month transition period is just right. This seems to allow for both the outgoing and incoming executives, and the people on their teams, to implement an effective, efficient, and respectful change of control that honors the contributions of those leaving while conferring credibility on the new leader.

Announcing the transition

How an organization handles the messaging of retiring executives and their replacements seems to play a significant role in how smoothly the transition occurs. One major corporate client begins planning at the highest levels six months before the selected retirement date, makes a formal announcement two months out, and then the retiree is gone. Some organizations prefer to ease the executive into retirement, being careful to not offend anyone or intimate anything less than a stellar performance by the retiree, and a longer overlap is often viewed as more appreciative of their contribution.

So much seems tied to the frequency with which an organization may deal with these situations. Generally speaking, larger organizations have standardized procedures and smaller organizations almost have to reinvent the wheel each time.

Consider the future

Interestingly, a couple of themes consistently surface as we speak to both outgoing and incoming executives: (1) treat people with respect, and (2) remember that this is just one piece of a continuing story.

They express it in various ways: what goes around comes around, karma, the Golden Rule. Call it what you will, the message is clear: We would be wise to remember that we will all be the retiree someday.

The company culture conversation isn’t anything new, but as employment rates stay low and the remote versus in-office debate volleys back and forth, it’s a discussion here to stay.

Intentionality is at the core of building company culture; sometimes, the strongest advocates for culture come from inside the building. Often, the best response leadership can give its employees is to listen and empower employees to suggest and implement plans. This approach isn’t just about the warm fuzzies; Gallup reports an eighty-five percent net profit increase over five years within companies that build a strong culture.

So, what does this look like in a real-time, tangible way? With offices and time zones spread across the country, The Alexander Group, like many other professional services firms, asked the same question, with leadership actively listening and welcoming ideas.

The results?

Well, for one, you will find most of us gathered or in front of our computers the third Thursday of every month for happy hour, a 60-minute opportunity to chat, laugh and discover new things about each other. The Alexander Group’s Anthony Ott spearheads the monthly event, drawing from experiences at a former employer.

“We have our heads down, working so hard that it’s nice to take a breath and get to know each other better,” associate Anthony Ott said. “We talk about non-work things and that helps build camaraderie, empowerment and trust.”

Ott uses an app that randomly selects the various groups each month, making sure at least one member of leadership is included, supplying the teams with ice breakers, trivia, quizzes and other conversation starters should they be needed. The Alexander Group is a gregarious bunch, so while the trivia has largely gone untouched, the spirit behind happy hour is thriving. The four to six people per group allows for conversation in a small setting, which is also by design.

“Having a small group is more conducive to really talking with each other. It allows us to see another side of a co-worker they may not normally see because we’re in a work mindset,” Ott said. “We all have a common denominator, and this gives a chance to expand culture and team building.”

Sociologist Tracy Brower studies work-life happiness and fulfillment and calls this “Social Capital,” the ability to form fulfilling relationships, generate new ideas and ask advice for how to get things done within the organization.

“Strong cultures also have intricate webbing of social capital—the networks of people across the organization. To maintain positive cultures in hybrid/remote working situations, leaders need to be intentional about encouraging people to build their networks,” Brower said. “They can do this by connecting people across departments, providing for cross-functional learning opportunities and creating time for people to have virtual coffee or networking discussions with colleagues across the company.”

The happy hours are in addition to monthly catered lunches where staff is encouraged to catch up over a meal, group outings to play darts or Top Golf and annual company retreats. Many of The Alexander Group team members, including managing director John Lamar, are based in California, so the West Coast contingent makes it a priority to gather in person a few times a year.

“It’s so much fun to meet in person, give them a hug and spend that time together,” Ott said.

A by-product of leadership-supported gatherings is the framework of a safe space to exchange ideas and encourage mentorship. Employees who know they are seen and heard feel valued, and that means greater staff retention.

McKinsey & Company study authors Terra Allas and Brooke Weddle say connection building helps meet the psychological and emotional needs of employees. They suggest setting up regular/daily meetings at the beginning of each day, allowing time for socializing and creating regular events to build social connections. McKinsey research shows society is a key source of meaning for employees, along with company, customer, team, and individual.

Indeed, that is what Pax8 CEO John Street finds with his employees. Street prioritizes inclusivity within his company, connecting every day with someone on his staff in a meaningful way.

“Creating a feeling of belonging locally, regionally and globally is priceless, and sustaining that feeling requires an inclusive approach and active commitment from leaders. For example, I make it a practice to call one employee each day and ask, “What’s going on in your world? What are you thinking about?” These discussions help me signal to every employee that they belong and are valued,” Street said in a January 2023 Forbes Magazine article. “Embedding inclusion and belonging is a core tenet of employee recruitment and retention.”

Indeed, Ott, knowing he was heard and supported by leadership, was motivated to expand the social capital plans at The Alexander Group. Next steps include one-on-one exchanges where team members can dedicate time for business development, marketing and organizational ideas and a quarterly exchange of constructive firm-wide suggestions.
“Empowered employees feel like they have a voice. We all come from different places and have different ideas. We all have something to offer,” Ott said.

Street has also found an energized employee base by listening to his staff. They feel encouraged and see themselves rising within Street’s IT company.

“When employees know their voices are being heard, they not only feel engaged but are actually engaged. Innovations rise to the top, and the individuals who bring great ideas to the table often become future leaders in the organization. Because they deeply understand the importance of being heard, these new leaders will then continue to prioritize listening to team members. Leaders can encourage employees to speak up in a variety of ways, like physical or virtual suggestion boxes, surveys or simply asking them directly,” Street said.

Every company is different, so if happy hour and axe throwing aren’t exactly the social experiences your team would appreciate, human resources expert Renee Cocchi says what’s most important is choosing activities that will help teams get closer to each other, be happier and more comfortable in the workplace so they can produce their best work. Planning to get social? Cocchi offers these tips when adding events to the culture-building event calendar:

Clearly communicate the goals and purpose of the activity
Encourage participation and collaboration from all team members
Make the activity fun and enjoyable, but also challenging.
Follow up on the activity to discuss any lessons learned and how they can be applied in the workplace.