Avoiding Instability in Senior Management

For a company to be successful, it needs to have a stable workforce and low turnover at the senior levels of the organization. To have otherwise leads to poor progress in achieving one’s objectives and the feeling within the organization that the leadership is somewhat rudderless, with an unclear direction, as well as other problems.

Creating stability and low turnover starts with having experienced leaders at the top whose management style instills confidence as well as a sound game plan and confidence in the senior management of the organization. A deliberate and well-vetted selection process for hiring competent senior managers who are in concert with the leader is critical. Senior management capable of doing their job with a solid support team follows with a realistic understanding of what is achievable given their resources and environment in which they operate. Steady progress in achieving the organization’s objectives reinforce the need for management stability and brings a sense of confidence and order within the rest of the team.

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Communication during times of change is critical as well. When the management team changes, the reason for it should be clearly explained in terms of how the change will help the company achieve its goals and not detract from the organization’s mission. And when there is a good reason for a change in that mission, it should be directly communicated to the staff as well.

But such changes should be well-considered and measured. When leaders make frequent changes to their senior management teams, their credibility and leadership ability may be questioned. Rumors, backbiting and inefficiencies creep into the organization. We have had clients whose CEOs who were difficult to work for, who micromanaged them and caused those managers to second-guess their decisions, all causing the staff to question the stability of the company. Such environments lead to unacceptably high turnover and lack of morale for those remaining and ancillary unfavorable consequences.

We see this playing out at the most senior levels of our government, with undesirable results and a lack of confidence in one’s leadership. Don’t let this happen to you.

Michael Neidle

Michael Neidle
Michael Neidle is president and CEO of Optimal Management, an advisor to staffing firm owners and managers.

Michael Neidle

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