The Myth of the Flawless Outsider

Why is it that so many companies exhibit a strong preference for recruiting external hires to fill key leadership roles? Are these rational, data-based decisions, or are some decision-makers falling prey to hidden biases that could prevent them from placing the right person in the role? If so, then at what cost?

Much has been written about the challenge and complexity facing today's leaders. Emerging technologies, aggressive competition, rapid change and escalation of consumer expectations all combine to make leadership a riskier proposition than ever before. The pressure on leaders to drive results can be extreme, and it is magnified when those leaders are stepping into new roles.

Filling these roles can present a daunting challenge, as circumstances demand breadth of leadership capabilities, depth of technical skills, and the wisdom required for successful navigation of an entirely new landscape. As companies explore the pool of candidates for these crucial roles, they often make the mistake of overlooking the internal talent they have cultivated.

We call this oversight "the myth of the flawless outsider," and it has several components:

• There is a natural tendency to cast a tough role with a heroic figure – someone who can be placed on a pedestal by the organization.
• This focus on the need for significant talent and thought leadership can make us overlook the strengths of those already familiar to us and concentrate on their relative weaknesses.
• We tend to devalue available information and fail to dig deeper in the interview process. Why do so many companies perform pre-hire assessments, only to disregard (or significantly under weigh) the data gained? A number of Hiring Managers have told us how much they have come to regret ignoring pre-hire assessment reports as those hires eventually stumble in their roles.
• All other things being equal, a lack of familiarity with candidates means their resumes tend to look "rosier" than the facts known to us about existing colleagues. We are very familiar with the career ups and downs (and personal idiosyncrasies) of our colleagues – information that we may not gain about external candidates until well after their start date. We call this the “ bright shiny penny” syndrome.

How do we create a more balanced approach, so that we don't overlook the talent right under our noses?

1. First, develop a rigorous, feedback-rich talent-management process that truly prepares your internal leaders for big roles.
2. Next, use a multivariate/multi-faceted approach to selection, with rigorous and structured interviewing and assessment for all candidates – whether external or internal to the company.
3. Strive to select humans over superheroes. Remember that brilliant interview skills do not equal leadership effectiveness (and may conceal flaws and lack of experience that will ultimately lead to their failure).
4. Do something that most companies don't: use pre-hire assessments and interview data to get New Leaders on the right developmental paths as they enter their roles. (Instead of waiting until their development needs become obvious to all).
5. Finally, work to establish realistic expectations for New Leaders so they don't fall into the heroism trap ("I'm here to change the culture," for example). Humans, not heroes, deliver sustainable results. And they don't have as far to fall as those perched atop inappropriate pedestals.

If, as do many humans, we prefer the new and shiny over the old and reliable, we need to follow the steps above to avoid falling into the trap set by the myth of the flawless outsider. It may be less exciting, but it will be better for our organizations (and us) in the long run.

Culture Makes or Breaks New Leaders

Many in the business community agree that a leader’s success (or even survival) in a role depends on their ability to work within the operational culture. And for those transitioning into new roles, culture lies at the root of many onboarding paradoxes. New Leaders are often hired to make changes, fix broken things, “take us to the next level,” have early impact, yet they must act within the context of the organizational culture to accomplish those imperatives. In addition, the New Leader must navigate not only the maze of corporate norms, but also the subculture in their own operation.

Seek  First to Understand ...

While actively learning about their operations, New Leaders are likely to notice that the number of definitions of the culture roughly equals the number of people in the organization. Some ways people commonly describe the culture of an organization include:

• “The way we do things around here.”
• “Lessons learned that are important to pass on to the next generation of employees.”
• “What we do when noone is looking.”

Without a common understanding, the New Leader may encounter barriers to gaining knowledge about the culture. This part of the onboarding process comes with a number of challenging questions:

• How is the culture described by the organization?
• Is it the same for top leaders as it is for others deeper in the organization?
• In the selection process did the New Leader hear the “whole truth" about the culture, or just the depiction of how the organization hopes to function someday?
• What about the discrepancies between how the inhabitants broadly describe the culture versus how the subcultures really function?

Addressing these questions can help the New Leader learn about, and demonstrate respect for, the existing culture (which has added importance for those hired as change agents).

Navigating the Culture -- It's OK to Ask for Directions 

To navigate the corporate culture, New Leaders must figure out not only “the way we do things around here” but also “the way we don’t do things around here.” While they were hired to lead their operations, the organization will directly and indirectly signal to the New Leader what they can and shouldn’t do to drive success. Those who take the time to observe, ask questions about the best ways to operate, and then follow that advice, are ultimately more successful.

New Leaders also have diagnostic tools available to give them an early view into the performance climate of their own operations – the culture that will make or break their results.

Culture Informs Planning and Action

In order to adequately grasp the culture, New Leaders must take a step back during their first months on the job and focus on learning rather than attempting to drive near-term performance. Some mistakenly assume that “because people downstream report to me, they will follow my direction and short-cycle their own.” These Leaders then move forward in a manner that runs counter to their operation’s culture and performance climate. Their outcomes can range from a simple lack of communication, to heightened frustration and complete failure.

New Leaders can truly “get” the culture if they work with their Hiring Managers to construct deliverables that:

• Facilitate learning about the corporate and operational culture.
• Demonstrate that they have incorporated that knowledge.
• Start moving the New Leader’s operation toward desired goals and performance levels.
• Working with (and within) the organizational culture that existed before New Leaders came on board will help smooth their transitions, balance the paradoxical nature of onboarding, and deliver results.

Working with (and within) the organizational culture that existed before New Leaders came on board will help smooth their transitions, balance the paradoxical nature of onboarding, and deliver results.