Why BigCo Execs Often Fail in SmallCo's

and What it Teaches About Leadership -

Spoke last month with a startup CCO on why execs fail.  He made an interesting observation that stuck with me. He noted that:

🤔 large company execs that go to small companies often struggle.

Now that’s not a rip against large company execs. Execs from large companies have many valuable skills that could often be used in small companies. And many small company execs often struggle in large companies as well.

But it does reveal a blind spot that’s crucial for execs.

The Blind Spot

Most big company execs have usually spent a lot of time operating organizations at a higher level of excellence. They know what best-in-class looks like. And they know how to run such organizations. There’s only one problem:

often they’ve never BUILT one from scratch.

🐠 In the same way the proverbial fish doesn’t understand the water it’s swimming in execs from orgs that are high-functioning don’t appreciate some of the basics building blocks that have to be in place to enable that function, or how to put all of those elements in place.

They’re normally aware of training and work process, but…

• They miss enabling methodologies.
• They miss org design.
• They miss hiring.
• They miss building supporting assets.
• They miss governance.

The ability to asses, design, and build organizational capability is a core executive job role. We think it’s one of the most important. And it’s the one that’s missing in many orgs.

• It’s not in the corporate training menu.
• It’s not in mentor conversations.
• It’s not in most exclusive leadership development experiences.
• And it’s not found “on the job.” (fish - water)

Actioning this Insight

With this skill so critical on Exec's capability list there are several things to consider for your leadership development.

1. Learn to assess an organization. The ability to assess organizational capability and design changes it is something that is learnable. The first step is a mental framework for organizational capability that can help in both assessment and design steps.
2. Get experience doing it. Harder to accomplish, but equally helpful, is to get considered for assignments that have some component of organization building involved in the remit. This is trial by fire sort of assignment if you've not done it before, so ideally, you have a framework developed.

The ability to asses, design, and build organizational capability is a core executive job role. It's why we teach it in Executive Breakthrough.

The truth is execs who don’t learn it, won’t survive, no matter what size company they’re in.