CHI tracks the outcomes of all executive placements for 24 months post-start date. Our data shows that 23% of placements that do not work out — defined as the executive leaving or being managed out — fail within the first 90 days. This is one of the most preventable wastes in business.
What Actually Causes Early Failures
When we investigate early failures, three causes account for 89% of cases:
- Brief misspecification (42%) — the role as described during the search was materially different from the role as it existed in practice. The most common form: the “transformation” mandate that turned out to have neither the budget nor the board support to be deliverable.
- Onboarding failure (31%) — the executive was placed and then largely left to navigate a complex organisation without structure, sponsorship, or clear 30/60/90 day expectations. This is particularly common in family-owned businesses making their first professional management hire.
- Cultural misalignment (16%) — a genuine failure to assess fit between the candidate’s operating style and the organisation’s actual (not stated) culture.
The CHI Approach
We provide all placed executives with a structured 90-day integration framework and conduct check-in calls at 30, 60, and 90 days post-start — both with the executive and with the key client stakeholder. This early warning system has reduced our 90-day failure rate to 4%, compared to an industry average of 23%.