Why do 40% of Executive Appointments Fail?
Behind the Scenes of “Talent Waste” and How to Avoid It
The Hefty Price of the Wrong Decision
In Saudi Arabia’s race toward “Vision 2030,” attracting “Superstar Leaders” has become a top priority for every ministry, authority, and major corporation. Yet, behind the brilliance of global resumes lies a shocking statistic that haunts boardrooms: nearly 40% of new executive leaders fail or leave their positions within the first 18 months. While this historic 40% figure stems from studies dating back to 2006, recent data suggests the situation has grown even more complex due to rapid market shifts.
A 2023 report by DDI World (Global Leadership Forecast)—one of the world’s most extensive leadership studies—reveals that 48% of current leaders experience “burnout” or an inability to keep pace, leading to rapid failure.
At “The Managers,” and through our extensive experience in the Saudi market, we recognize that the failure to appoint a single leader does not just mean losing their salary and bonuses. It means the “waste of talent” across an entire team, the disruption of strategic projects worth billions of riyals, and the loss of institutional momentum. This article analyzes the deep-seated reasons for such failures and provides a roadmap for successful executive appointments.
I. The “Halo Effect” Trap
The first reason for failure begins at the initial review of the CV. Many decision-makers fall into the “Halo Effect” trap, where they are dazzled by a candidate’s academic background (a graduate of a prestigious university) or previous employment at global giants (such as Aramco, McKinsey, or Google).
The assumption that “success in environment (A) necessarily guarantees success in environment (B)” is a catastrophic one. A leader who achieved stunning success in a highly stable and structured environment may completely collapse when placed in a nascent government entity that requires “building from scratch” and enduring high degrees of ambiguity. At “The Managers,” we don’t look for the “best” in absolute terms; we look for the “best fit for the context of the current challenge.”
II. Cultural Alignment: The Unsung Hero of Leadership Success
Why does a “global expert” fail in the Saudi environment? Often, it is not due to a lack of technical expertise, but because of “Institutional Culture Shock.”
- Ability to Navigate the System: The Saudi environment is characterized by a unique blend of respect for hierarchy and a high speed of execution. A leader who does not understand the “power dynamics” within the organization or fails to build internal “strategic alliances” will find themselves isolated, no matter how brilliant their ideas are.
- The Social Language: Leadership in the Kingdom relies heavily on “Social Intelligence” and the ability to win the team’s trust—not just through formal authority, but through personal appreciation and building meaning.
III. The “Savior Syndrome” and Lack of Expectation Management
Some entities err when appointing a new leader by portraying them internally as the “Savior” who will solve all problems with a magic touch. This raises the ceiling of expectations to unrealistic levels and creates immense pressure on the leader from day one. The failure here is not the leader’s alone; it is a failure in “Position Design.” If “Clear and Measurable KPIs” are not defined within the first 90 days, the leader will drown in daily operational tasks and forget the strategic mission they were brought in to achieve.
IV. The Absence of Strategic “Onboarding” for Executives
There is a misconception that an executive leader, given their experience and high salary, does not need an “onboarding program.” The leader is left to swim alone in the “organizational ocean” from day one. Studies prove that leaders who receive a strategic onboarding program (including identifying key stakeholders, understanding the unwritten culture, and receiving early feedback) increase their chances of success by 60%. At “The Managers,” we always emphasize that the appointment begins after the contract is signed, not before.
V. “The Managers” Methodology in Mitigating Appointment Risks
To combat the 40% failure rate, “The Managers” has developed a six-pillar model to ensure selection accuracy:
- Context Analysis over Job Description: We study the actual challenges the leader will face in the first year before drafting duties.
- Assessment Centers: we don’t settle for interviews; we place the candidate in “simulations” of difficult decisions to measure their reactions under pressure.
- Deep Reference Checks: We speak with those who worked “under” the leader and “alongside” them, not just their former bosses.
- Measuring Cognitive Agility: Does the leader have the ability to learn quickly and let go of old templates (Unlearning)?
- Values Testing: Ensuring the leader’s personal values (integrity, transparency, giving) align with the direction of the “Vision.”
- The First 100 Days Support: Providing accompanying consultancy to the leader to ensure they pass the initial danger zone.
VI. The Cost of Failure: More than Just Money
When a leadership appointment fails in a sensitive entity, the cost exceeds millions. The cost includes:
- Morale Deterioration: Employees feel a loss of confidence in the management’s selection criteria.
- Opportunity Cost: The time lost in a failed experiment could have been time for growth and transformation.
- Damage to Institutional Reputation: It becomes harder to attract other talents in the future if the entity becomes known as a “graveyard for leaders.”
Selection is a Science, Not Just an Intuition
Choosing a leader is the most critical decision a Board of Directors or a Minister can make. Relying on “personal intuition” or “bright names” is no longer sufficient given the complexities of the modern Saudi market.
At “The Managers,” we are here to transform the appointment process from a “gamble” into a “calculated strategic investment.” We do not just sell recruitment services; we sell “decision peace of mind” and sustainable success.
– This article has been reframed using AI.
