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Started by : Gargi Sinha, Senior Consultant, Hewitt Associates   03 26 2009 13:50:50 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : Change Management(People Management)
Activity:  360 views;  last activity : 07 06 2010 20:18:09 +0000

Entry level or middle level management executive leave the organisation for n number of reasons. But I am not able to figure out why do Top C's like CIO, CEO, Chairman and VP, Director leave their organisation. What is the reason behind it. Is it personal or because company going under loss or something else. ?

I am here to find out, so please help me out with it...

I will be glad if you participate and let me know why they leave and what can be done to retain them.

Reasons for the top management level executive to leave the organisation ?

Please list out various reason...Thank u...

 
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  9 4 2 1 1
 
 
 
 
 
 
 
 
 
 
 
 
 
1 2 3 4 5
1 Business Dynamics and continuous change needs new skills
2 Ownership
3 No standardize reason
4 Higher Risk level of decisions
5 Bcoz of financial crisis....
6 incompatability
7 Unable to cope with the responsibility
8 Fresh challenges and remuneration
9 there will be no leadership qualities
10 Why do CEO, VP, DIRECTOR, CHAIRMAN, CIO leave the organisation or JOB
11 HIgher market demand
12 Early information about company down falls
13 There Inability to produce results as desired by Owner/Management
14 Business Need and Self Fulfillment

Business Dynamics and continuous change needs new skills

idea posted by Raghu Kastury Principal Consultant & Head of Strategic Business Unit - Retail & Distribution, Sundaram Infotech Solutions Limited

In today's world, where business is at the speed of thought, every organization has to be creative, fast and efficient. When things are changing so fast, organizations go through several phases. For each pahse, organization needs people with expertise in specific skills.

So Organizations look for leaders with strength in those skills and bring them on board. Usually they will be given anywhere between 2 to 3 years time to make a difference. After that period, organization moves into another phase. That phase needs yet another set of skills and hence organization looks for people with those skills. This is the only way for the organizations to stay current and young.

It is impossible to find a person with all the skills required to steer the organization forever. It is not possible to continuously upgrade one's skills and become equally efficient like an expert in that skill. So its better for the organization to find who is already an expert in that area rather than spending time on upgrading the skills of exisiting leader.

So the c level guy, usually realizes that the mission for which he/she has been brought has been accomplished (or failed) and tries to look for other organizations where he / she can use his/her strenths effectively.

In some cases (very small nmber) the mission would be very long term or the c level guy foresees the future required skills and makes arrangements accordingly and continues in the same organization.

If we take the average longivity of a c level person in any organization accross the world, the average is coming down from time to time, that is because to beat the speed of competetion.

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by Nitin M Aras, XYZ  | 03 28 2009 07:53:07 +0000

Agree with Raghu, business dynamics plays a major role. Most of the companies do not have long term planning. Major strength of Cs should be the AGILITY to run a business in any kind of environment.

2
  

Yes agree with raghu on his comment that when once objective is finished then its difficult to be there and one usually wants to explore many new things and will go for the new challenge out there.

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Ownership

idea posted by Tanmay Gaur Freelance Software Developer

I think the cause is ownership. Top managers needs to have ownership of their field in the organization. If the company fails to provide ownership to his top manager, he disassociates with it. Competent Top Managers work behind company core selling propositions. They shoulder the risk and the pain onto such developments. If the company gives them the full ownership, they associate with its full life cycle. They get encouraged to bring more value to the company and like to associate with the brand thereby making it a solid brand. Incompetent managers have nothing to own so they seek greener pastures, hoping companies.

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I agree with this reason as cause of leaving job of higher management people.Because after having long years experience in a company,they start to take it as owns.They want to give best effort and make it reach to a highest position,for that they want to take all best possible decision.Bt somehow they couldnt because of not having ownership of that company and they are refrained off from taking significant steps.Which not only hurts their self-respect,also ruin their urge of doing work over there.

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by Radhakrishna Marar, Business Analyst, Oracle  | 03 28 2009 10:50:40 +0000

I would somewhat agree with tanmay's reason for the top managers of the company to leave the organisation. but there are various other factors like their inefficiency to handle the organisation, unable  to have a healthy relationship with the shareholders or BOD etc.which contributes more in their decision to leave the organisation.

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by HASMUKH GANDHI, FILM AND TV PRODUCER, PROFESSIONAL  | 03 27 2009 08:28:14 +0000

I agree with Tanmay Gaur. That exactly what I said. If u r not promoter of the company, u tend to react and think differenly as there is always an identity crisis. If ownership of the company is linked with u, it will impact the decision making process differently. Why the hell, u shud or wud quit your own company?

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No standardize reason

idea posted by Suman Sharma Export Co-ordinator, International Panaacia Ltd

 Well ,in my opinion every individual has different life situations.So one can't standardize that because of this perticular reason top management leave the organisation.There can be so many reasons.But some very common reasons are-Better offer from any other organisation,Some family problems,sometimes they resign when the company caught in to serious fraud etc.

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Higher Risk level of decisions

idea posted by Shaju George Facilities/Construction Manager, IBS Software Services (P) Ltd

Severity of a bad decision by a top manager is much higher than those by an employee at lower level. It can affect the company very badly in case a decision went wrong. Top management very rarely gets a chance to correct themself and their decision, compared to an employee at lower level.

1
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Bcoz of financial crisis....

idea posted by Kalaiselvi HR Executive, Live Connections

I this economic situation, CEO's are coming out from the organisation bcoz, after taking a lot of decision to overcome the economic crisis. Due to the financial deficiency, he cant able to make profit to the organization. CEO's are putting paper come out from the tension. It's the simple reason they leave the concern and carry over his personal life.

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by Kalaiselvi , HR Executive, Live Connections  | 03 27 2009 08:39:03 +0000

I simply agree with this.

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incompatability

idea posted by Inderpal Singh Dy. Director, Institute of Business Studies and Research (IBSAR)

Most CEOs, CMDs or others at the top positions join an organisation only after closely understanding the pros and cons of doing so. Most of them join with a long term vision of leading the organsiation to greater heights. There is enough clarity on their part and the promoter's part as regards the objective and the path that the organisation needs to take to grow.

I would beg to differ with most of the viewpoints already stated in this debate. Agreed that the good top managers are in demand and are well-networked, this is no reason for them to look at another organisation until it satisfies their need of taking up newer challenges. No CEO or other leader would abort a ship because there is a downturn in the market and the going has got tougher. Such people, anyways, are not good leaders and would do more harm than good to an organsiation even when the going is good.

 Movements therefore happen at these levels for either of two reasons:

1) The job has become unchallenging: the challenges that were initially associated with the job have been overcome and the organisation for various reasons is now running on it's own steam or looking at moderate rates of growth. This makes the job monotonous for a genuine leader, who is not content doing a mundane job.

2) Monetary with better working conditions and challenges: There is another offer which is more difficult to refuse due to the challenges that it poses in either setting upa start-up or turning around an organisation.

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Unable to cope with the responsibility

idea posted by Jayant Arrawatia Partner, JRC Solutions

I have  the priviledge of working with some of the top executives. What i have sensed is that the top management leave organization when they feel that now it is difficult for them to cope with the responsibility. They never leave because of money. At that level only two reasons have been found related: 1. Changing for position or company name and 2. Not able to fulfill their responsbilities in the best possible manner.

They leave for the good of company;as they have attained a status, they will leave only  to benefit their company and for others.

This is what i feel for the topic.

Thanks

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by Jayant Arrawatia, Partner, JRC Solutions  | 03 28 2009 12:04:11 +0000

i support

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Fresh challenges and remuneration

idea posted by Jaygopal Raghavan Marketing Manager, Landmark Group

Very often one can see the top C's in an organisation switching loyalties because of the need to have fresh challenges and more remuneration in life.

Actually there can be a plethora of reasons why they leave. It could be groupism within the company, a new investor taking reins and hence wanting his own management team etc. But most often it is the saturation level that they attain at the top both in terms of remuneration and future promotions. A CEO of a company can rise higher than that. MAybe they can become a director on the board.

Life stagnates at the top with no forward movement and likewise even in the remuneration part. A top notch CEO or Director in an organisation is given all - car, house, stock option, bonus etc. but at that level his aspirations are obviously a notch higher. Probably he might want to be a Mallya wanting to own an F1 team etc. So money does play an important part alongwith fresh challenge.

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there will be no leadership qualities

idea posted by jairaj shyam prasad Production Manager, BOSCH Ltd

yes, if a top man like CEO, VP has resigned, it should be deemed as he is not the real leader and inefficient team motivator.any top man should have a good team of his own which executes and he shall be the moderator/caretaker of the team.nomally top management/board will give targets that takes some days to years depending on the size of the organisation and its goal.the CEO/VP etc., should see that target will be completed within given timeframe. if he fails then natuarally he will be ousted.and these things are well informed in advance by top management to every one who is going to hold the responsibilities.i just want to say if knowing all these things and simply quit the job for any one reason, definitely there is a lack of leadership in him.

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Why do CEO, VP, DIRECTOR, CHAIRMAN, CIO leave the organisation or JOB

idea posted by Gargi Sinha Senior Consultant, Hewitt Associates

Reasons for the top management level executive to leave the organisation ?

Please list out various reason...Thank u...

0
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by Gargi Sinha, Senior Consultant, Hewitt Associates  | 03 27 2009 10:18:32 +0000

Thank you everyone, it was nice to see so many comments/ideas...

I am very thankful...And yes I do agree with all the reason you all have given.

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by Yash Singh, Coresspondent, Star  | 03 27 2009 06:15:53 +0000

I completely agree with all the things that have been mentioned by hasmukh and it feels good to know his knowledge in this respect.

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by HASMUKH GANDHI, FILM AND TV PRODUCER, PROFESSIONAL  | 03 27 2009 05:03:58 +0000

Well, there cud be number of reasons. Unless, it is promoters' own compnay, there always be an identity crisis, in terms of psychological level. You and your company are not the same. In ultimate sense, u r an employee like anybody else. So, u need a change as after certain period of time, answerability creates fatigue value. Secondly, if the CEO/ED/CHAIRMAN have been able to associate himself with the rise and glory of the company, there can always be a better offfer and since the emotional bonds are not so strong at that level, one can get tempted to venture into new business ventures. There is also certain amount of saturation point of the current company and there is no intellectual challenge left. They move out to prove themselves all over again to raise the new company by his sheer enterpreneurship to the apex level. Normal reasons like office politics, stagantion etc etc...shall always be there...  

I wud like to add that if only v r talking of present time, then becoz of global recession and its impact on Indian economy and liquidity crunch, the vision and forcast for the CEO etc., cud possibly go wrong. To save his face, and keep his reputation intact, he might just move away and chill for some time.

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HIgher market demand

idea posted by Shaju George Facilities/Construction Manager, IBS Software Services (P) Ltd

A good top management person is always under high demand. They will normally have large contacts and experience. Others will be watching at their performance and they may approach this person when there is a requirement. So the market is wide open for a top manager compared to other employees.

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Early information about company down falls

idea posted by Shaju George Facilities/Construction Manager, IBS Software Services (P) Ltd

Top management will get early information about the trend of growth direction and financial status of the company. If they feel that it is not heading in the right direction, they will naturally try to quit at the earliest.

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There Inability to produce results as desired by Owner/Management

idea posted by gurminder dhir Associate Vice President ( Marketing), ISMT Ltd.

There Inability to produce results as desired by Owner/Management

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Business Need and Self Fulfillment

idea posted by Dipayan Sarkar Student , Siva Sivani Institute of Management

I think both the organisations changing Business Need and Top brasses own initiatives for self fulfillment influences them to change the organisation.

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