By Deborah Kops
Earlier this month I had two of those eleventh-hour conversations with leaders who were about to sign onto gigs reviving GBS models. I was familiar with each company’s revolving door of leaders, the quality of the team, GBS’s historic inability to scale, and the downward trajectory of the share performance. So, I asked each of them, “How do you know you’ll be successful? Will you have the backing and the budget to make a difference? Are there triggers in the business context that say the time is ripe for change? What’s the probability that you’ll be on the street in 30 months?”
And neither of them could answer.
I’m surprised at the number of GBS leader candidates, so flattered by the attentions of internal talent acquisition or a big search firm—or honestly somewhat desperate to nag a new role—don’t ask the right questions or do any homework. Far too many assume that the enterprise’s brand and scale are synonymous with career opportunity and growth.
“What’s past is prologue,” Shakespeare, The Tempest, Act 2, Scene I
Whether the new gig is a greenfield build, reviving a moribund organization, or taking the helm of a well-run operation, not taking the time to do due diligence is a mistake of gargantuan proportions. And to be blunt, too many of our friends throw caution to the wind and blindly sign on.
What must savvy GBS leaders do before signing a new employment contract?
Do some desktop research.
A bit of skunkworks is in order before the seduction goes too far. Find out:
- How many CXOs has the company had in the last five years, or even the last 10? Likely CXO revolving doors 1) say the company is a laggard, not a leader, and can’t quite crack a successful formula; 2) suggest that the fortunes of the company aren’t necessarily looking up; or 3) if the past is prologue, the current mob won’t last very long, all connoting a lack of support for a GBS model.
- How has the share price performed, and why? It amazes me that folks don’t study historical stock performance. At the very minimum, one would think that the leader would do a bit of forecasting as share performance directly impacts long-term incentive value. Is the industry low growth? Low margin? Has the enterprise placed some wrong bets? While GBS can positively impact share value, it’s not a knight in shining armor.
- Who is on the board? Nothing focuses the CEO’s mind like an activist investor. And, if one of the members comes from a services company or an enterprise that has either aggressively gone GBS or outsourced, the new GBS leader should know what’s being whispered in the ears of the CEO.
- Where did key leadership come from? Do occupants of the C-suite come from enterprises that have embraced or rejected a GBS model, positioning them as endorsers or guerillas? Chances are their attitudes are ingrained.
- How many public announcements relative to reorganization, restructuring, or missing earnings have been made? It should be a red flag if every quarter there’s a difficult press release or a painful earnings call. Likely GBS will be put under pressure to cut, cut, cut, or, when the line of sight to transformation becomes blurred, taken apart under the banner of failure to perform.
- What is the company’s acquisition/divestiture history, and what has happened to its GBS leadership? This could suggest that management is subject to a serial game of musical chairs, with constant competition for the top role. While the party with the most mature GBS will likely maintain primacy, in other cases, the GBS role becomes a giveaway to the acquired to keep the numbers sweet.
- Is the company ripe for acquisition? The marketplace constantly speculates about combinations. Empirically, executives in an acquired company are likely to lose any “best athlete” contest (trust me, I’ve been there).
- Is the GBS organization on a most-admired list? While there’s a lot of subjectivity in these lists, and it’s best to take inclusion with a pinch of salt, a list does say something about GBS’s industry’s reputation. After all, the brand of a GBS is usually conflated with the brand of the leader.
- If there was a previous incumbent, what have they been saying on industry podiums? While a predecessor’s public statements may be a bit of a hype, their comments will likely give the prospective leader a sense for the historic GBS state of play.
- What are the consultants saying? Advisors are a chatty bunch. They are usually comfortable dishing about their (former) or (prospective) clients, hoping upon hope that giving the straight skinny to a prospective leader will position them for future engagement. You never know what you’ll learn.
And ask the uncomfortable questions.
It’s your career; why wouldn’t you ask critical questions? Whether it’s to the hiring officer or the search consultant, if you can’t get clear answers to key GBS-related questions, be suspicious.
Don’t just read the tea leaves. They won’t give you the full picture.
Is the enterprise serious about transformation?
- Does the enterprise have a plan for GBS? If the enterprise does have a plan, it may be a consultant’s PPT, not necessarily the plan the new leader can actually implement. Or perhaps the candidate has another vision, causing dissonance. On the other hand, if the enterprise is waiting for a new leader to tell them what to do, it may take a year or more to design, plan, syndicate, and get buy-in, further delaying value delivery and creating a class of enterprise non-believers.
- Who is the enterprise’s consulting firm drug of choice, and, if applicable, who developed the GBS strategy? Not only can we all recognize a specific consulting firm’s PPT slide, but we all know what they are advising. Some firms frankly don’t understand the model, others cooky-cutter their GBS approach, while some partners really understand how culture and context shape the solution and give a new leader something to build on. No position is more difficult than disputing the expensive consultant’s solution on Day 1.
- Does GBS strategy align with corporate strategy? All too often, GBS is a thing in and of itself. If the enterprise hasn’t aligned its GBS strategy’s mission and goals directly, the two will move in parallel, unaligned universes.
- To what extent is the GBS program funded? One of the most dangerous sentences muttered in the heat of GBS leader recruitment is, “We will do whatever it takes.” Discount that declaration by half. None of us fell off a turnip truck yesterday; transformation programs are high-investment, complicated, multi-year endeavors. Funding won’t magically appear.
- What’s the role of the Chief Transformation Officer? Increasingly, CTransOs are showing up on the org chart? What is their mandate? Will they see GBS levers as “theirs” and go to battle with the model? Or will they work collaboratively?
- What’s the time frame for change? Are expectations unreasonable?
- How many major transformation programs have been attempted in the past 10 years? It’s important to know whether the enterprise is suffering from change fatigue, and if GBS is considered just another program destined for failure.
- What’s the company’s experience implementing ERP? There is a correlation between successful ERP implementation and the success and sustainability of a GBS; after all, they are intertwined.
- Are all transformation levers on the table? Most enterprises have sacred cows. Is outsourcing deemed counter-culture? Is legal off-limits? Is self-serve a no-no? Can regions or business units opt out?
- What has the business historically thought of GBS? Does the enterprise believe in the concept? The answer to this question will shape the new leader’s approach to stakeholder management—educate and start from scratch, build upon existing strengths, or spend time re-directing and re-educating.
Are people, the organization, and culture supportive or stacked against you?
- What’s the power structure? Is the enterprise center-led, giving the GBS model sufficient support, or distributed amongst regional or segment leadership requiring the GBS leader to manage a complex matrix in order to get anything done?
- Why did the last leader leave? Of their own volition? Exited because they were too aggressive/too slow/not a good cultural fit? Moved elsewhere in the business? Retire? Each one of these situations has different implications for the new leader and may foreshadow their own enterprise career trajectory.
- Does the enterprise take well to outsiders? When a corporate denizen introduces themselves, is the second statement, “I’ve been with x company for y years?” it suggests the enterprise may have a not-invented-here approach to problem solving and becoming “one of us” will take a very long time.
- Was an internal leader considered for the role? Beware of the passed over leader. At times, they can sabotage the new leader’s agenda. Ask why they were not appointed—the reason will likely be very telling.
- Does the company believe in internal rotations? Has a leader rotated out of GBS? Does the enterprise look at GBS as a talent hub? Or the graveyard of ambition?
- Who has GBS reported to previously? Heard the stories about GBS leaders with four bosses over five years? GBS reporting can be a management hot potato—and it’s difficult to execute a complex program without consistent direction.
- How competent is the team? Wholesale replacement is not only not likely in the cards, it won’t respect the DNA (Respect the DNA – Sourcing Change). But a base understanding of capability before joining is critical.
- Who is out to torch the model? Not all stakeholders are created equal or have the same impact on GBS program success and sustainability. Ask about the CHRO. Believe it or not, the CHRO can be GBS’s (and its leaders’) biggest endorser or enemy. Do any of the enterprise’s key leaders actively or quietly oppose the concept?
- What are the enterprise’s career-limiting moves? Every enterprise has unwritten codes. As an external, the GBS leader must get up to speed quickly.
What’s the upshot? Be discerning, folks. One short stint in the wrong role may not derail a GBS career, but serial missteps ring alarm bells for hiring officers. Make sure you are forearmed when you take up a new role. It will pay off for your career in the long run.