After more than two decades of practice as an executive search consultant, I know a great deal about the importance of putting the right people in the right jobs. But the findings presented in the 2006 Harvard Business Review article "Are Leaders Portable?" still managed to surprise me.
Authors Boris Groysberg, Andrew McLean and Nitin Nohria looked at the impact that 20 former GE executives had had on the value of the companies they subsequently went on to lead and found that it ranged from an abnormal return of more than 60% per year to a yearly value destruction of 30% (adjusting for industry, size, and stock volatility). The message was clear: a strong pedigree and track record in one organization does not guarantee great performance in the next one if the executive doesn't match up to the strategic, industry, relationship and company-specific challenges he or she will face. This was solid, relevant research, with practical applications, presented in an accessible way — completely in line with HBR's tradition.
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