The Importance of Onboarding

By Ginny McGarrity

The impression a newly hired executive makes within the first 90 days is widely acknowledged by business leaders as a critical indicator of his or her potential long-term success within the company. But newly hired leaders face myriad challenges before they set foot in their new office – not the least of which is overcoming the legacy (good or bad) of their predecessor. Once in the door, new executives are faced with the monumental pressure of integrating into a new culture, finding out the key players, setting objectives and achieving early wins.

With all this at stake, neither the executive nor the company can afford any missteps. Losing a newly hired executive can cost a company much more than the two or three times base salary, when the cost of recruitment, relocation, compensation, training and severance is considered. And according to Michael Watkins, author of The First 90 Days and a former Harvard Business School and INSEAD professor, indirect costs such as lost opportunities, business delays and damage to relationships with staff and customers can push that number up to as much as 24 times base salary. Yet only a fraction of mid-sized companies provide new executives with the means to ensure they are successful in their new role. To protect their investment and increase the newly hired executive’s chances for success, companies need to make sure that they are put through a well-planned and thorough onboarding process.

Onboarding, also known as management integration, is a strategic, results-oriented program, designed to set the executive up for success. Onboarding should not be confused or mingled with the “employee orientation” program that explains the company’s vacation policy and health benefits. At its best, onboarding is orchestrated by a skilled professional business coach who works with the executive to help assimilate quickly into the new company, accelerate strategic plans, navigate the culture and mesh with their new team. This coach also can help them create and execute a plan designed to achieve early wins that matter, as this is especially crucial in a mid-size company.

Judging by the statistics, executives need all the help they can get. According to a recent article in the Economist (July 2006), “being boss of an American firm may be fabulously well paid, but never has the position of top banana been harder to cling on to. Research has show that 728 chief executives left their jobs in the first half of this 2006—some willingly, many not. That was 6.9 percent more than during the same period in 2005, a year with an all-time record high of 1,322 departures.” Additionally, The Center for Creative Leadership states that 40 percent of all executives fail in the first 18 months.

Even the best leader can benefit greatly from help assimilating into the new role and the new corporate culture. If assisting a new leader might seem counterintuitive after having carefully hired someone with the right skills, consider onboarding the insurance policy that protects the company’s investment, helps the executive deliver better results faster and reduces the risk of his or her failure. From a financial perspective, consider the time value of money or the time value of performance. An onboarding program can help the new executive achieve accelerated success and real results faster.

There are many firms who specialize in onboarding and costs can exceed $25,000 per executive. Many large search firms have expanded their offerings to include onboarding; a trend to providing broader leadership assessment, development and coaching services. However, a good coach can assist the new executive’s integration into the organization at varying degrees and at fees more palatable.

Unlike executive coaching, which focuses on the career-development of an individual, onboarding concentrates on establishing teams and being effective in the shortest amount of time. The coach should begin working with the executive prior to his or her start date, (“pre-boarding”) by creating an onboarding plan that includes identifying key stakeholders in the new organization. As day one approaches, the coach will assist the new executive with taking charge of those critical initial impressions – with the knowledge there is only one opportunity to make a good first impression.

Other goals a strong onboarding program can help an executive achieve include:

Gain Knowledge
The coach assists to create short and long-term plans for the executive that addresses additional organizational, role or relationship issues and gives guidance on how to deliver short-term results while planning for the long-term. The main role of the coach, however, is to help the executive figure out who and what they need to know. Once that’s established, they work together to plan and schedule meetings with key stakeholders and sources of knowledge. Again, these meetings are more than just a “meet and greet.” Each meeting has an important objective: to find out what they need to understand about that person’s role and how their role may be impacted. The coach will ensure the executive meets with all the key players such as clients, peers, subordinates, cross functional team, suppliers, and also makes sure that these meetings happen as quickly as possible.

After each meeting, the executive meets with the coach to discuss the meeting and create a summary of key discussion points. The two work together to systematically assemble all the information gathered into a plan complete with individuals, their roles and what needs to be accomplished with each person along with any potential bottlenecks. This plan addresses technical issues – products, customers, technologies and strategies – as well as cultural and political learnings.

Leverage leadership
The executive was hired for certain strengths and a good coach can match the executive’s strengths to the situation by swiftly identifying the skills most critical to leading in their new role. The coach also will quickly evaluate the new executive’s team to assess the present talent and fill any gaps to ensure success. Aligning the new team is critical to the executive’s success. Countless articles and books have centered on executives failure to act swiftly in aligning their teams. It is imperative the new executive get a serious head start in developing a strong team that have the capability to make an impact.

In addition, the executive’s leadership skills can receive guidance that right tone and style is delivered to match the new role and culture. The coach can help the executive leverage high emotional intelligence and effective communication strategies to yield strong business relationships and boost team morale.

Achieve wins
Early wins build credibility and create momentum. They create energy and a sense that things are going to happen. But the caveat is these wins need to improve business success – not just promote internal goodwill. This step requires focus by both the executive and coach to transform what they have learned into planned actions that align with the CEO’s primary objectives.

This systematic mapping of information and roles allows the executive to see where the roadblocks are and opens the door for a conversation with the CEO about the difference between their objectives and the objectives of others in the company. The business coach helps the executive skillfully maneuver through these delicate interactions and avoid inadvertently stepping into – an undesirable situation. The business coach also helps the employee open up the channels of communications with the CEO about performance expectations and business objectives and then helps the executive manage issues in both areas.

As with any discipline, onboarding is a constant learning process for the organization. Companies should consider creating their own onboarding experts who own the process and can recalibrate the tools as needed sharing the knowledge across departments. Successful onboarding translates to successful leadership – and that translates into a major competitive advantage.