Comment Comment
Comment on the blogs Log in here Become a member Register now
 
Richard Goff

Richard Goff

23 Jun 2011 | 10:51

(Maximum of 120 characters)
Articles more than one month old can be viewed only by CIPD members or PM Subscribers.

At a recent HR leaders’ network event, CIPD’s immediate past president Vicky Wright quoted a new survey that found the average tenure of CEOs was 4.5 years.

This is interesting: is that longer than you thought, or less? Either way, it certainly means CEOs tend to be on their way before the five-year plan reaches full bloom, or ignobly fails. It’s also an average; meaning, of course, that a good proportion are in role less than four years.

If you square this against the average tenure of workers in organisations (median of 5.1 years), and the time it takes to change culture at organisations (rarely overnight), this means most employees tend to outlive CEOs, and get more than their fair share of cultural change - we all know how new CEOs love to tinker, if not tip the entire organisation on its head and shake it until everything falls out.

It’s even tempting to conclude that average employee tenure is six months longer than CEOs’ tenure because once another CEO comes in and undoes everything their predecessor did, a significant proportion of employees promptly quit, exasperated. But, of course, statistics don’t quite work like that.

Nevertheless, with a recent survey revealing that only 58 per cent believe their company is safe in the CEO’s hands, and with the zeitgeist billowing firmly against established authority - be that expenses-drenched MPs, Twitter-shy celebs or even entire sectors - it’s not an exaggeration to say that societally we have something of a leadership crisis, and organisations are by no means immune to that.

In seeking to play the longer game, in aiming for more sustainable organisations, should our leaders stay longer, committing themselves more explicitly to their organisations?

Or is there something to be said for a fresh vision re-energising organisations every half a decade or so, without which they become stale…?

Comments

1. At 13:13 on 23 Jun 2011, John Moreland Black wrote:

It would be interesting to know if there are significant differences in this average between the public, private, and third sectors - I suspect there is.
Report this post

 
 

About the specialists

Iain Mackinnon

Iain Mackinnon

Managing director of the Mackinnon Partnership and a public policy consultant specialising in the people side of economic development,...

Ian Buckingham

Ian Buckingham

A specialist in employee engagement. He is the former founding MD of Interbrand Inside and the founder of the Bring Yourself 2 Work...

John Philpott

John Philpott

Chief economic adviser at the CIPD and visiting professor of economics at the University of Hertfordshire. He has been an adviser to...

John Taylor

John Taylor

John Taylor is the chief executive of Acas

Lou Burrows

Lou Burrows

Global head of people at innovation company ?What If! Since joining in 2006 Lou has revolutionised the company's approach to recruitment,...

Peter Honey

Peter Honey

Founder of Peter Honey Publications Ltd. He created the Honey & Mumford Learning Styles Questionnaire and has worked as a management...

Peter Reid

Peter Reid

European Employee Relations Consultant who has monitored employment developments in Brussels for almost 20 years. Peter also advises...

Richard Goff

Richard Goff

Richard Goff is one of the CIPD's Relationship Managers, concentrating particularly on relationships with HR Leaders and engaging them...

The Apprentice

The Apprentice

Jo Cameron is a former contestant on The Apprentice and founder of training and development company Jo Cameron’s High Performance Academy....

Starting next month!

New CIPD Intermediate Certificate in HR Management from CIPD Training

Find out more

Employee health and
well-being

...NEW! online resources in partnership with AXA PPP healthcare

Explore the resources
Links open in new window
 
People Management neither recommends, nor is responsible for, the content of external sites listed here.
Your link here: contact the PM sales team.