Insecurity of Success

Success often ushers in an unexpected and contradictory companion – insecurity.

A recent study of workplace leadership dynamics, featured in the '2023 CHRO Trends' report by Talent Strategy Group within Fortune 200 companies, reveals a perplexing correlation between the elevation of a new CEO and a notable increase in CHRO turnovers. 33% of CEOs replaced CHROs within 12 months, and within 24 months 54% made such changes. This revelation, coupled with the disconcerting findings of the 'CEO Turnover Report' for the United States—a remarkable 47% surge compared to the previous year (resulting in 1425 exits by Q3, 2023)—paints a disquieting picture of the adverse effects accompanying transitions in top leadership. The ripple effect extends far beyond the confines of HR leadership, setting off a chain reaction throughout the organizational leadership hierarchy.

Throughout the annals of recent history, the transition of leadership at the upper echelons has consistently reverberated with consequential aftermaths. Analogous to the fallout of an explosion, not all structures in the proximity emerge unscathed. A significant portion of the leadership team within the coveted 'inner circle' of the former CEO becomes casualties—primarily victims of the insecurities harbored by the new leaders. The apparent strategic maneuvers or initiatives used to justify their displacement cleverly conceal the prevalent low-trust atmosphere at the organizational summit. Given the substantial autonomy granted to new CEOs, these anticipated top-level shake-ups have not only become commonplace but have also been normalized. To a somewhat lesser extent, this seismic disturbance also displaces many further down the organizational hierarchy. Considering that nearly 50-70% of new CEOs falter within their initial two years, the consequential long-term impact on the organizational fabric is both profound and debilitating.

The tenure of jobs at all levels within organizations has undergone a significant transformation in tandem with the accelerated pace of globalization in recent decades. The truncation of job tenures exerts a deleterious effect on organizational culture, eroding its resilience and resulting in an overarching atmosphere of ‘low trust’. Paired with the cutthroat nature of modern businesses, workplaces continually grapple with a succession of challenges emanating from a low-trust environment. Piecing together a coherent sense of purpose aimed at achieving common business objectives becomes a trying task. Thanks to the pervasive low-trust atmosphere, organizational loyalty, once an unshakable cornerstone, has now become a relic of the past for the majority. Organizations, in turn, exhibit a diminishing concern for employees, readily issuing pink slips en masse at the first sign of impending trouble. The prevalence of low trust is more widespread than our collective willingness to acknowledge or confront.

At the heart of most contemporary organizational predicaments lies this fundamental issue of a low-trust environment. Individuals find themselves habitually vigilant, watching their backs to safeguard their positions. The recent and unexpected departure of the OpenAI CEO, accompanied by a significant exodus from his critical inner circle, is a poignant illustration of the endemic nature of a low-trust work environment even in high-performing global organizations. Importantly, this issue transcends cultural, geographic, demographic, and gender boundaries, emerging as a global phenomenon with far-reaching consequences. Yet, the collective response to this debilitating general low-trust business environment seems more ambivalent than curative.

Businesses today are in flux. It has become imperative to recognize the pressing need for transformative measures that address and rectify the prevailing low-trust work environment. The status quo is a sure-shot way to oblivion. The younger workforce demands it, and they don’t seem to shy away from asserting their demands.

Author Profile:?Writes about life. Consults on human potential and workplace HR. A keen observer of emerging trends and technologies that enhance workplace productivity. AI and advanced technology and its effective and ethical usage at the workplace is the current preoccupation. Over 25 years of broad experience developing Leadership/Human Resources in large global organizations and start-ups. Enjoy analyzing and going beyond the hype. Admire the word ‘holism’.