After a prolonged period of poor results a new chief executive is appointed and there is an immediate improvement in performance. Perhaps it is because senior people want to impress the new CE and maintain their status and influence, perhaps it is because those who feel they were undervalued by the previous boss want to take advantage of a fresh start. Perhaps it’s the belief that the new boss is not wedded to the ideas of the old boss, ideas that weren’t working despite the boss’ insistence on persevering with them. In sport this is referred to as the “New Manager Bounce”.
The new CE does not have long to capitalise on the “bounce”. There is no money for new resources ,at least in the short term. There is no appetite for a major restructuring from the board. They want improved performance. Improved relationships. A more positive atmosphere.
Every one wants to know what the new boss is like. What’s the new plan? How will things be different?
All new CE’s have their ideas about what was going wrong before. Maybe people weren’t clear about the priorities, maybe they weren’t clear about what was expected, maybe there was too much tinkering, when people just wanted to be left alone to get on with it. Maybe people felt the previous management was over critical and this had resulted in a loss of confidence, an over cautious approach and so a loss of creativity.
A few symbolic changes may announce a new approach, a fresh start. The new CE needs to quickly change the mood about the place. Usually this is attempted by being very positive about the future, by being very pleasantly surprised by what they have found on taking up the post, there are some very talented individuals, there is a clear commitment to getting things right, this energy and enthusiasm has filled the new boss with confidence.
It is clear the problems the organisation has experienced have been exaggerated. There have been some bad decisions and some bad luck but nothing that can’t be put right. Over the next few days/weeks they will be meeting and listening to as many people in the organisation as possible to learn more about the organisation and how together “we” can improve turn things round.
Sometimes this works sometimes it doesn’t. Sometimes the opposite approach works. Instead of saying things are not as bad as they seem and the future is positive the leader gives the “ I have nothing to offer you but blood sweat and tears…“ In other words thing are going to get a lot tougher, I don’t want any one to think there are some easy solutions, but I am determined to get us through this. Great leaders know which approach will work best in which circumstance.
