The Perils of B-Players in Senior Management Roles

It is no secret that leadership quality can make or break an organization. While it's common for organizations to have a mix of A, B, and C-level players due to various constraints, elevating B-players to critical senior management positions or retaining them can have far-reaching and often detrimental consequences, suggesting the critical importance of cultivating and maintaining A-player leadership for long-term organizational success.?

The Attraction of Mediocrity

The attraction of mediocrity is perhaps the most insidious effect of B-player leadership. Research by Groysberg et al. (2004) demonstrates that A-players are six times more likely to recruit other A-players compared to B-players. This tendency creates a self-perpetuating cycle where B-level leaders surround themselves with B and C-level employees, gradually eroding the overall talent pool within the organization. A stark example of this phenomenon was Apple's history during the early 2000s under John Sculley's leadership. This period, often called Apple's "dark ages," saw a significant decline in innovation and market share due to B-player leadership (Isaacson, 2011).

Exodus of Top Talent

Moreover, B-player leadership often catalyzes an exodus of top talent. A-players, who thrive on challenge and innovation, quickly become frustrated under the guidance of less capable leaders. This brain drain further weakens the organization's competitive edge and innovation potential. Microsoft's "lost decade" under Steve Ballmer's leadership serves as a cautionary tale, where the company saw an exodus of top talent to competitors like Google and Amazon (Eichenwald, 2012). This trend is supported by Gallup's (2017) finding that 70% of the variance in employee engagement is attributed to management quality.

Subpar Performance and Missed Opportunities

The subpar performance resulting from B-player leadership is another critical concern. B-level leaders often lack the vision, drive, and strategic thinking characteristic of A-players. This deficiency results in missed opportunities, slower growth, and decreased overall performance. In contrast, McKinsey research indicates that top-performing organizations are 2.2 times more likely to select high-caliber, talented leaders (Barton et al., 2012, Keller, 2017).?

Erosion of Standards

As B and C players become more prevalent within an organization, standards inevitably erode. The bar for excellence is lowered across the board, making it increasingly difficult to attract and retain high-caliber talent in the future. Jim Collins' "Good to Great" research further supports this, demonstrating that organizations that sustain success have a higher proportion of A-players in key positions (Collins, 2001).

Long-term Consequences

The long-term consequences of B-player leadership can be severe and far-reaching. The cumulative effect often leads to a significant competitive disadvantage that becomes progressively more challenging and costly to reverse over time. BlackBerry's fall from market leader to niche player due to complacent leadership and failure to innovate serves as a sobering example (McNish & Silcoff, 2015). A 10-year study by Zenger and Folkman (2019) found that organizations with the highest quality leaders were 13 times more likely to outperform their competition in key bottom-line metrics, underscoring the critical importance of top-tier leadership.

Differentiating B-Players

However, it's important to note that not all B-players are created equal. Some B-players may develop into A-players with the right guidance and opportunities. These individuals often demonstrate adaptability, openness to feedback, and a strong desire to learn and grow. For these high-potential often young B-players, targeted development programs, mentorship, and stretch assignments can be effective strategies for nurturing their talents and helping them reach A-player status before they are tasked with critical organizational leadership responsibilities.

On the other hand, B-players with limited growth potential may consistently demonstrate a lack of visionary thinking, an inability to develop others effectively, self-serving politicking, and behaviors focused on defending their status instead of others. In these cases, organizations must make difficult decisions about reassignment to non-leadership roles or even outplacement to maintain the overall health and performance of the organization.

Conclusion

While promoting B-players to leadership positions may be tempting due to availability or perceived loyalty, the long-term costs far outweigh any short-term benefits. Organizations must prioritize identifying, developing, and retaining A-player leadership to ensure sustained success and growth. This involves implementing rigorous leadership selection processes, investing in leadership development programs, regularly assessing leadership performance, and creating a culture that attracts and retains A-players by emphasizing excellence, continuous improvement, and accountability from all members.

The stakes are high. Organizations that fail to correct staffing mistakes in critical leadership roles risk falling behind more agile and innovative competitors. By understanding the perils of B-player leadership and taking proactive steps to cultivate top-tier talent, organizations can position themselves for long-term success and maintain a competitive edge in their respective industries. It also requires the very top leader’s ability to make difficult decisions.??

References

Barton, D., Carey, D., & Charan, R. (2012). Talent wins: The new playbook for putting people first. Harvard Business Press.?

Collins, J. (2001). Good to Great: Why Some Companies Make the Leap and Others Don't. HarperBusiness. https://www.jimcollins.com/article_topics/articles/good-to-great.html

Eichenwald, K. (2012). Microsoft's Lost Decade. Vanity Fair. https://www.vanityfair.com/news/business/2012/08/microsoft-lost-mojo-steve-ballmer

Gallup. (2017). State of the American Manager Report. https://www.gallup.com/workplace/238085/state-american-workplace-report-2017.aspx?

Groysberg, B., Nanda, A., & Nohria, N. (2004). The Risky Business of Hiring Stars. Harvard Business Review. https://hbr.org/2004/05/the-risky-business-of-hiring-stars

Isaacson, W. (2011). Steve Jobs. Simon & Schuster. https://www.simonandschuster.com/books/Steve-Jobs/Walter-Isaacson/9781451648539?

Keller, S. (2017). Attracting and retaining the right talent, McKinsey. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/attracting-and-retaining-the-right-talent

McNish, J., & Silcoff, S. (2015). Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry.?https://www.google.de/books/edition/Losing_the_Signal/3XzHCgAAQBAJ?hl=en&gbpv=1&pg=PT2&printsec=frontcover?

Zenger, J., & Folkman, J. (2019). The New Extraordinary Leader: Turning Good Managers into Great Leaders. McGraw Hill. https://zengerfolkman.com/books/the-extraordinary-leader/