Putting People Into Boxes

A Dangerous But Still Popular Management Practice

As our country continues to grow and develop, it is now more important that ever before to get our management and people decisions right! This applies from the selection of Chairpersons and Board Members through to the Chief Executive, key executives, line managers, supervisor appointments and below.

Way way back in the May/June issue of Knightview in 1989, I expressed my concern that a disproportionate number of accounting/financial executives were being appointed to CEO roles, and that the subsequent emphasis on cutting costs appeared to be at the expense of creating new business opportunities and improving top line performance. The current business environment however requires a much more balanced approach, flexibility and some lateral thinking in terms of management appointments.

I have long been of the view that compared to other western economies, New Zealand executives still largely appear to have a fixation in terms of the technical and performance skill sets, industry backgrounds and experience considered absolutely necessary to effectively operate in executive, management or many lesser roles for that matter. Whenever I am being briefed by a client I endeavour to establish the reasons why the specific skill sets, qualifications and experience are being stipulated. Experience has taught me that many of the “perceived essential requirements” are not necessary at all, rather the focus should be shifted to the competencies required to be successful in a given role, the attitudinal and motivational requirements necessary to make it work, and importantly the “fit” with the company culture. (For both parties)

To quote an example, I was asked to search the market for a Chief Executive Officer in a specialised area of the property market. As the assignment progressed it became apparent that what the company actually required was not a vertically skilled property specialist with management ability but a very well rounded Chief Executive with vision, strong people /leadership skills, disciplined planning and organisational skills with possibly, but by no means necessarily, some knowledge of property. Learned and developed leadership and management skills are transferable and there is no reason why, for example, a Regional Manager of a commercial finance company could not be appointed to a similar role within a completely different industry. The management and leadership principles are exactly the same, further, in my experience most companies have an abundance of internal resource with the necessary technical skills, product and market knowledge which can in fact be complemented by a manager who comes into an organisation without industry prejudice or preconceived ideas. The new Manager can further develop existing in-house skills whilst providing the organisation with a fresh new perspective and some outside objectivity. We often hear the comment – “this person is a banker, a scientist, engineer, computer boffin or a teacher! (The list goes on…) He or she has neither the skills nor the background to be successful in this role.” In other words people are put into “Boxes”.

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