Common reasons at to why executives are dismissed

In my job I have the fortune or misfortune to see up close why certain companies will exit one of their leaders.

I have summarized 6 of the most common reasons as to why this often occurs.

1.

 Often an executive will remain locked into the past.  They might stick to a formula that once proved to be successful rather than fully understand a fresh new situation with a carefully thought out solution.  I remember an example of this from a personal experience.  A former President who had just arrived to our company was presenting the strategy to us with slides that were from his former company complete with corporate logos.  I was about to laugh during his intended motivational speech but I very quickly felt embarrassed for him before the laughter could start.  That is obviously an obvious example of living in the past, but often leaders who bring in the same playbook that has worked in the past will not last long.  That individual did not last the year and even a finance minded executive with a cost slashing playbook will eventually run their course after a couple of years.

2.

 Indecisiveness is also often an issue.  One way or another, time marches on and the status quo is never the safe play.

3.

 Sometimes not anticipating the unexpected can cause issues.  Consumer Packaged Goods executives used to be considered to be at the top of the heap when it came to training, preparation and    execution.  Occasionally the cockiness of a successful CPG executive would catch up to them when they moved into a different industry.  Often it would be the lack of consumer awareness that would catch them off guard or at least the inability to combat lack of customer awareness without heavy marketing spend.

4.

 Communication skills or communication style will often sink someone.  This is especially apparent when a lack of “fit” was ignored at hiring in favour of past performance and a desirable skill.  Once the desired numbers are not delivered, the need to communicate the new plan and engage the team is the next set of skills that are required and if those are missing in the leader, things can go downhill quickly.

5.

 The lack of a specific skill set is also an obvious scenario.  The former boss might have loved a certain individual and may have unknowingly placed them into a position which was above their operating level.  The attitude might have been there but when the skills are lacking, even respected leaders will lose their support base.

6.

 Inability to work with global offices or parent companies can also be an issue.  When a Head Office starts to refer to you as the rogue President, it might be funny but there is probably more to the comment and that might not bode well for long term job stability.

Farewell,

Mike