Stability breeds consistency. Everyone knows what is expected of them. The strategy has the time it requires to show it is working. Everyone is clear about the desired end product. There is general agreement about how things should be done. There is sufficient agility and creativity in the mix to make tack tickle adjustments when faced with the unexpected. A culture of stability but with the space for innovation makes it easier to attract the most talented.
If this is the accepted recipe for success why then do some of the most ruthlessly successful organisations change those in charge with indecent frequency? These organisations demand instant success, the average tenure of a chief executive in these organisations is 18 months! Even if the first 12 months have been successful any dip in performance, any failure to maintain the momentum, any sign that the ability inspire or the knack of making the right decisions at the right time is on the wane and those in charge are dispensed with.
As in other walks of life the accepted rules don’t seem to apply to some of the biggest most prestigious and well funded organisations. These are the Real Madrid’s Barcelona’s and Chelsea’s of the business world. Where as for most organisations frequently changing those at the top would be considered a sign of panic, unrealistic expectations and most likely a dysfunctional set of relationships at board level.
An organisation doomed to failure however impressive the track record of the new person in charge. Not so these. Ridiculously impatience, totally intolerant of anything short of unqualified success, with plenty of evidence of strife and conflict at board level never the less it works for them. But they are the exception.
Most organisations require their leadership to be given time to show their strategy will work. Most organisation benefit from stability at the top provided it is not at the expense of creativity and innovation. Those who think the answer is always to change those in charge are ignoring the evidence and often missing the other reasons that success is not forth coming.
