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Executives slide off the rails

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The corporate world is awash with stories about supposedly high-flying managers faltering along the way. The London Business School (LBS) has carried out extensive research into 'executive derailment', seeking to find out why so many executives, who enjoy success in their early years, encounter a problem between personal skills and job requirements as they reach a higher managerial level.

Figures indicate that five years into their career journey, only 25 per cent of executives are still on track to achieve their career potential. Another 25 per cent reach a plateau and are unable to progress any further, while a further 25 per cent are made redundant. The rest leave an organisation voluntarily. The research was conducted last year among a sample number of industry sectors globally.

John Wills, London Business School's director of accelerated development programmes, says executive derailment happens across all businesses and at all levels of positions.

'Someone [who] has a good record of accomplishment and seemingly has what it takes to be promoted may actually sow the seeds for their own downfall,' he says. 'For example, over-reliance on a single strength often leads to an inability or unwillingness to accept and learn from failure. Technical or business brilliance can also lead to a narrow focus and approach to business problems. Even ambition can sometimes lead to unethical behaviour and create problems with building trust.' Wills says executives moving to a general management role can no longer rely on specialist knowledge to carry them through. 'To achieve individual success and success for their companies, today's executives require a whole new set of 'big-picture' skills.'

Organisations wishing to avoid losing good people should ensure that tomorrow's leaders receive support through the different transitional stages of management, Wills says.

Mary Greene, London Business School's director for business development and executive education, says employers need to be aware that today's up-and-coming executives are different from a decade ago. 'Whether it is the influence of the internet and the fact that so much information is available, surveys show the aspirations and expectations of young management professionals are completely different from those of their counterparts in the 1990s.

They are striving for more and expect more opportunities, support and training from their companies,' Greene says.

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