According to McKinsey:
– Nearly 50 percent of top executives did not earn support for their ideas when moving into C-suite roles.
– More than 33 percent of C-suite executives have not met their objectives during their tenures.
Results from a McKinsey Insights online survey conducted in July 2014. n = 1, 195 global c-level respondents (1)
When McKinsey consultants Rajiv Chandran, Hortense de la Boutetiere, and Carolyn Dewar asked C-level respondents asked what factors contributed to success or failure, organization-wide alignment was considered ‘critical’. Misalignment is a silent killer of C-suite objectives. Not surprisingly, the same top executives consider organizational culture the hardest area to understand while assimilating into a new leadership position.
Fundamental Problem: Top Executives are Fooling Themselves with Conventional Logic
1. Success of C-suite executives is contingent on organizational alignment.
2. Technological advances have had a profound impact on the democratization of information, contextual awareness of individuals, how teams assemble, and how teams collaborate to solve problems.
3. Most companies are still stuck in their elegant, but ineffective, top-down Org Chart hierarchies.
How do organizations really collaborate to get work done?
…like social networks.
Elegant, hierarchical organizations are being disrupted by organic, adaptive, networked organizations that are figuring out how to operating in this reality. A new model and leadership principles are required to adapt to the complexities of how organizations really operate.
Ecosystem Model: Networks of Networks
The complexity of the Fundamental Problem (above) is compounded when an organization (one network) interacts with one or more other organizations (also networks).
For example, consider four companies A, B, C, and D. Each operates as its own network of interconnected employees and teams. Now consider how the companies must interact with each other in a variety of relationships such as customer/vendor, alliance partners, etc.
The number of inter-organization touch-points increases exponentially, posing challenges for B2B governance and collaboration.
(1) McKinsey Insights – Ascending to the C-suite April 2015