Link retiree exit strategy, new manager development

As employees take the long steps from one level to the next, employers need to use experienced managers to ease the transition

The trend of flattening organizations by removing layers of management has made leadership development more complicated.

The more levels of management there were, the easier it was to develop people through minor promotions and incremental increases in responsibility.

But today, when moving from one management level to the next, people make significantly greater leaps in responsibilities. Spans of control increase exponentially compared to what used to occur in more traditional pyramid-shaped organizations.

At the same time, a lack of opportunity for promotions can become a retention problem if high potential employees grow restless waiting to move into senior positions. Some organizations may be faced with the difficult proposition of removing senior leaders if they are perceived as a blockage to future managers. However, this problem will likely be replaced by different ones in the years ahead as large numbers of leaders reach prime retirement age.

Many people will be jumping from relatively junior ranks into senior positions only to find there are few executives on whom they can call because of the thinning out of the organization structure.

They have minimal opportunity to gain mentoring since their superiors face the same stress and overloading which they encounter. Many of the veteran managers have left the firm taking with them knowledge of the business and the experience of dealing with its idiosyncrasies.

A great deal of intellectual capital that was not retained on computer knowledge systems has left the building and the company, without providing the new incumbent with any recourse.

Let executives retire in steps

A constructive approach to these problems can be achieved through a well-thought-out program of blockage management — having senior managers or executives step away from their positions in favour of newer, less experienced managers.

Such a program can be an effective development tool for new managers required to make major leaps in the scope of their management responsibilities. It is important that such moves be seen in a positive light and not seen as punishment for the senior manager.

Many people will retire because they are tired, stressed and have had enough of the pressure-packed business environment. Others won’t be ready to retire completely since they hadn’t planned on being able to do so at a younger age. Their post-employment plans have not been developed. Unfortunately many organizations do not provide alternatives between retirement and full-time employment.

Usually there aren’t face-saving opportunities for veteran managers. They must remain in their management roles until they retire.

For organizations looking to facilitate a gradual retirement that also assists younger managers, a senior manager does not retire but rather reduces his responsibility level and the amount of time spent at work. His role changes from that of a doer to that of a mentor and coach.

Instead of having the new manager take courses that may or may not be relevant to the business, the firm retains a readily accessible wealth of knowledge and experience germane to the position and the organization.

Other organizations have opened up a position for a new high potential employee by moving the incumbent senior manager into a project management position. While overseeing this project, the senior manager is still available for consultation and mentoring for the new manager.

Outgoing manager can’t be a lame duck

The outgoing manager must be keen to perform the role of coach and mentor. He must be able to shed the trappings of management and to assume new responsibilities that often lack authority. It is vital to the process that the issue of authority be clarified.

It must be clear to all that the organization is investing in the development of its people by making this change. The senior manager can’t be seen as killing time until retirement.

Another reason the responsibilities and authority of the transitioned executive must be clearly defined is to ensure the new manager is neither in fact, nor by perception, undermined in her duties as a manager or leader.

Similarly it is necessary to develop goals and objectives for the person being transitioned. These goals can vary from the successful completion of a project or integration of an acquisition to the evident accomplishments of the development of the newly appointed manager.

Incoming manager shoulders responsibility

While certain actions are required to ensure the organization is getting value retaining the person in transition, other criteria need to be implemented to ensure the new manager is properly using the support provided.

A developmental plan needs to be created when the person first moves into the new role. The plan should identify the new incumbent’s weaknesses and strengths. After these have been determined, a manager in transition with a complementary skill set should be selected. There is no point assigning a manager who has the same strengths and weaknesses as the new manager.

The learner must not become too dependent on the senior manager. In these hectic business times managers may abdicate responsibility to others who have superior skills in areas of their weakness, whether they are psychologists, consultants or suppliers. The same risk is present when using a coach or mentor. The manager needs to realize both accountability and responsibility rest on her shoulders.

The new manager must approach the exercise positively and not feel her competence is being questioned. She needs to see this as a developmental tool.

The neophyte must not be intimidated by the senior manager. If the relationship is not working, it is important to identify this situation and take appropriate action. When it is felt that no further value is being added, the new manager must terminate the relationship.

External coaching resources

New, less experienced managers should also be given the option of recruiting older and more experienced “pros” from outside the organization to help get up to speed more quickly.

Such hiring can be done either on an open-ended basis or on a contract basis. In either case it allows the new manager to recruit assistance and gain insight into areas she may not have management strengths in. In such cases the development will probably be more economical, practical and effective than spending on management consulting.

Another variation to this development approach is the use of executive coaches. The use of these professionals is growing at a rapid pace. Many of the persons engaged in this profession are former senior managers who are no longer in the mainstream of their organizations.

Differentiating between external coaches and consultants is a fine line. Usually the consultant is engaged to undertake a specific project or to address a particular niche or knowledge area of a business.

The coach tends to provide less specific input and acts more as a mentor. The coach helps the new manager without any aspirations to her role, status or power in the organization.

In the case of the “coach” employee, it is not as costly as hiring a consultant because consultants have to cover off “downtime” and overhead while the employee is engaged on a full- or part-time basis and able to accept a lower rate.

Whether an organization uses existing senior managers in the latter stages of their careers, retired or semi-retired individuals on a contract basis or executive coaches, the goal is the same. Identify an effective vehicle to assist in the development of new or struggling managers so that they may be successful in the complex and stressful business scenario of the present day.

Fred Pamenter is managing partner with Pamenter, Pamenter, Brezer and Deganis Limited, a Toronto-based HR consulting and executive search firm. He may be contacted at (416) 620-5980 or [email protected].

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