This is a series written to help leaders understand what derails them and their management team. Over the next few weeks, we’ll be highlighting the entire list of eleven derailers from the Hogan Assessment.
Derailer #1: Excitable
John was a VP of Sales for a large manufacturing company in Chicago. He had been with the firm for fifteen years, as it had grown modestly. One thing the CEO noticed over time was John’s inability to keep good people around him.
He would hire a salesperson—a top producer—who would be there for a couple of years and then move on.
John had been asked about this problem but always blamed it on: “These people today just don’t have any loyalty.”
But the CEO knew something different. HR had done an exit interview with the last person that left, and it was quite revealing. The salesperson had revealed John’s true nature. He flew off the handle during sales meetings, he would get angry at prospects right in front of his salespeople and he seemed very hard to please regardless of what order was brought in.
It seemed that John would always emotionally erupt at the very wrong time.
Now that the CEO knew this, he had to take action. He couldn’t afford to have a VP of sales in a position that impacted the company’s growth that was derailed in leading his people. And the CEO knew how much it cost to lose a top talent.
So, do you know a John? Is he in your company? And have you convinced yourself there’s nothing you can do about him?
The Background
People who are excitable will erupt in an emotional display that puzzles those around them. They’ll be perfectly calm one minute and screaming at their counterparts the next. When you look at what causes it, you don’t always see it, because it’s very seldom something that happens externally.
It’s always internal. As we say in our coaching, there are five things that cause people to be derailed: stress, familiarity, tiredness, boredom and flexibility.
In certain circumstances it can be one or more of these causes to be a derailer. Regardless, a derailed leader destroys morale and shuts down people’s creative spirit.
The Real Cost
Those of you who think: “This is just a person with a temper problem,” you’re wrong. This person costs your organization hundreds of thousands, if not millions, of dollars each year they’re allowed to destroy the spirit of their team.
In John’s case, the CEO estimated that the five people John had lost over a five year time span had cost the company $750,000 in profits ($150,000 x 5). This company operated at a five percent net margin, so that was essentially like losing a fifteen million dollar account.
That didn’t include the account value these salespeople took with them when they left. This derailer is extremely expensive, and as you look around your company, watch for these people because they will have a big impact on your firm.
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