How focusing on the leadership context of management roles outside the C-suite can lead to better hiring decisions at every level.
One of the things that distinguishes C-level search is the extent to which candidates’ qualifications are evaluated in terms of context. The needs of a company and the challenges it faces when gearing up for global expansion, preparing for an IPO or recovering from a crisis, as well as its long-term strategic vision, are top of mind. It follows that boards tend to favour candidates with experience leading in similar circumstances. This contextual approach is rarely used when filling leadership roles outside the C-suite, however. For these roles decision-makers tend to prefer managers and executives who are generalists.
There are signs that a shift is underway, from the traditional generalist manager to more specialised leadership. This wave of change likely stems from fundamental shifts in the requirements of leadership, such as greater complexity, broader responsibilities, and faster rates of change.
A new study from Gartner looked at the personality traits, experience, performance, effectiveness and other attributes of 9,000 leaders at 85 global companies over a period of three years. These data were then analysed against various types of contextual challenges. Some of the most important, such as growing market share and leading M&A, pertain to the competitive landscape. Others, such as managing geographically dispersed teams, are characteristic of the company. Still others apply at the team level, or solely to the position.
The researchers concluded that leaders at all levels are more successful in their roles if the hiring process that brought them there focused on specific contextual challenges. The best outcomes occur when hiring managers have a firm grasp on the contextual challenges of the position, and are able to recognise matching leadership attributes. Awareness of leadership context can also be useful in talent development, as investments can be put towards specific areas of mismatch.
Further, as the Harvard Business Review explains, “This approach to managing talent might also lead companies to a greater awareness of their bench strength.” Looking through this lens could “make a company aware that it has many executives who are skilled at launching new products or competing for market share but very few who excel at cost cutting or managing turnarounds.” Executive hiring as well as development can then be directing at filling the gaps.
