ÍæÅ¼½ã½ã

Our Network

by Clint Boulton

7 reasons ÍæÅ¼½ã½ãs quit (or lose their jobs)

Feature
Feb 8, 20187 mins
ÍæÅ¼½ã½ãCareersStaff Management

From false promises to role changes, ÍæÅ¼½ã½ãs exit when their ability to execute their strategy or grow their careers hits a road block ¡ª a trend that may be accelerating, thanks to the rise of digital transformations.

man looking at exit quit termination
Credit: Thinkstock

After completing a digital transformation as the ÍæÅ¼½ã½ã of American Cancer Society, Jay Ferro left for ISP EarthLink in 2016 as ÍæÅ¼½ã½ã and chief product officer, overseeing both IT and the company’s enterprise product strategy. Ferro began working with then CEO Joe Eazor on a turnaround strategy in which he helped build enterprise products.

But later that year EarthLink merged with Windstream, and Ferro was offered a role at the combined company that no longer included purview over product. He declined the role and is now . “The direction of the organization just wasn’t what I was interested in,” Ferro tells ÍæÅ¼½ã½ã.com.

On average, ÍæÅ¼½ã½ãs exit companies every 4 years. As with Ferro, a ÍæÅ¼½ã½ã’s departure is often spurred by broad changes in corporate strategy or role. ÍæÅ¼½ã½ãs also exit because they can’t shake free the budget they require or they find their strategy de-emphasized. And sometimes ÍæÅ¼½ã½ãs leave because they don’t mesh with the corporate culture, or fail to get their jobs done.

As businesses move more swiftly in the digital era, the ÍæÅ¼½ã½ã carousel is likely to spin faster for those who fail to execute digital transformations. There is no empirical evidence that this is the case — yet. Most enterprises are still formulating their digital strategies, so it may be too early for ÍæÅ¼½ã½ãs to fail. But with the stakes so high, it’s bound to happen.

[ Learn from your peers: Check out our State of the ÍæÅ¼½ã½ã report on the challenges and concerns of ÍæÅ¼½ã½ãs today. | Find out whether you have what it takes to be a next-generation ÍæÅ¼½ã½ã and how IT leaders transform their organizations for the digital era. | Get weekly insights by . ]

“I have seen a fair amount of churn, but not necessarily more,” says Chris Patrick, global ÍæÅ¼½ã½ã practice leader at Egon Zehnder. “The job is getting tougher, it’s getting more complex, and it requires not only tech skills but business acumen and leadership capabilities.”

Translation: It’s never been a better or more challenging time to be a ÍæÅ¼½ã½ã. Here are seven reasons ÍæÅ¼½ã½ãs exit leadership roles — or get shown the door.

The challenges of a 2-in-1 role

Some companies are separating digital from enterprise IT by hiring chief digital officers. Others are entrusting both digital and enterprise IT management to their ÍæÅ¼½ã½ã. Such two-in-one roles are high risk, high reward, with failure guaranteeing an early exit and success paving the way for better opportunities.

Patrick says ÍæÅ¼½ã½ãs are increasingly asked to maintain internal IT and drive digital product and service innovation, putting many of them in a difficult position. “Many come from a traditional enterprise IT background, and now they’re being asked to deliver on products and programs that are not necessarily their experience base or where they’ve operated for the bulk of their career,” Patrick says.

Misaligned expectations on the pace of change

Some ÍæÅ¼½ã½ãs find their weaknesses exposed against accelerated timelines, in which CEOs attuned to the rise of agile software development expect results in 6 to 8 weeks rather than 6 to 12 months. Saddled with unrealistic expectations, these ÍæÅ¼½ã½ãs may fail and get shown the door. “Whether justified or not, often the person who owns the technology roadmap and strategy bears the brunt of it,” Patrick says.

Bureaucratic resistance to change

The inability to overcome resistance to change is another chief reason ÍæÅ¼½ã½ãs leave, says Matt Aiello, a partner at Heidrick & Struggles. Aiello says that one client who was hired to orchestrate a digital transformation exited a ÍæÅ¼½ã½ã role because it was so bureaucratic that he could not usher in rapid change. “They’re saying they want to drive like a Tesla Model S but really they’re acting more like a skateboard,” Aiello says. “They have lead feet in an agile age.”

Strategic misalignment

ÍæÅ¼½ã½ãs also part ways with companies over misalignment on what a digital transformation means. Some view transformation as a play to connect with customers and generate revenue, while others view it as a way to cut costs and improve operational efficiencies. A ÍæÅ¼½ã½ã who prefers the former but is told to orchestrate the latter will look for new opportunities, Aiello says.

“You need to develop good listening skills in the course of an interview, and certainly, the first 60 days so you know what you’re getting into,” Aiello says. Executives’ inability to align on a roadmap is a top reason why digital transformation strategies fail.

Bait and switch — or becoming the victim of one’s own success

Sometimes ÍæÅ¼½ã½ãs are promised the opportunity to drive digital change, only to see it yanked away — a bait-and-switch tactic.

One Korn Ferry client hired as a ÍæÅ¼½ã½ã for a hospitality company overhauled creaky, failing IT systems for what he was led to believe would support a digital transformation, says Gerry McNamara, global managing director of the recruiter’s information officers practice. McNamara says that the ÍæÅ¼½ã½ã, who reported to the COO, got the systems stable and reliable, and he hired well. But once the operational foundation was laid the CEO hired a CDO to drive the digital agenda, reporting directly to the CEO. The ÍæÅ¼½ã½ã quit; he didn’t want to watch the company build digital products using his budget, people and infrastructure.

Stagnation

For some ÍæÅ¼½ã½ãs, the end may not come soon enough, says Patrick. “Clients say they want someone to be there for 10 years,” Patrick says. “Frankly, I don’t know that you’d want someone there for 10 years.” The problem, he says, is that the IT organization can stagnate with the same leadership, particularly if that leader has not groomed successors. An enduring ÍæÅ¼½ã½ã also won’t build high-performing team, as those who view their career development as stalled or blocked will move on.

Job hopping — or a lack of follow through

Conversely, ÍæÅ¼½ã½ãs who only last 12 to 24 months don’t do themselves any favors because it makes them seem like job hoppers who can’t commit or get along with colleagues. Tenures of 4 to 5 years, he says, gives ÍæÅ¼½ã½ãs enough time to usher in change, stabilize and augment the function and move on before the organization grows stale. “The sweet spot is the 4- to 5-year time horizon and that’s where you need to set your sights,” Patrick says.