Have you ever watched a sports team where the coach just seems... out of sync with the team? It's not that they're not skilled or knowledgeable. It's just that something isn't clicking. That is what we call "Leadership fit". Hiring and retaining top leadership talent remains a challenge for many organisations. 

So, what is this Leadership Fit, and why is it the secret sauce for retaining top leadership talent?

Understanding Leadership Fit

It refers to the compatibility between the leaders and the organisations they work for. It's the harmonious symphony that happens when a leader's values, career goals, and behaviours are in tune with the organisation's culture, objectives, and ethos as well as with the team they engage with. When this alignment is off, even the brightest leaders can flicker and fade. But when it's on point, it's like magic. The leader thrives, their teams are engaged, and the organisation soars.

A classic example is Sarah, a CFO who moved from a manufacturing firm to a fast-paced start-up. Despite her impeccable credentials, Sarah felt out of place due to a mismatch in organisational culture and personal values. While Sarah had the right skillset and transferrable competencies, the environment and its culture didn't align with her expectations of with her team, colleagues and leadership as well as her way of operating.

This lack of alignment is not based on skillset but rather on organisational values, structure and culture. Sarah had accomplished wonders in a large environement where there was strong process and structure as well as people decidated to support with all the different aspect of a business. She had great vision and leadership in that context.

Moving forward to her new appointment as the CFO in a start-up, while  she struggled to adapt to an environment that didn't have the resources and  processes to operate at the level she used to.

Such cases highlight the importance of Leadership Fit beyond just professional qualifications.

A recent survey conducted by the Organisational Behavior Institute found that businesses with a high Person-Organisation Fit among their leaders experienced a 45% increase in retention compared to those that didn't prioritise it.

Practical Steps for Organisations to address Leadership-Fit

1. Organisation and leadership assessment: Identify the organisation unique attributes and challenges as well as the type of leadership that thrives in that environment.
2. Role assessment: Crafting a position description that highlight the skills required as well as the challenges it will face. 
3. Recruitment campaign: Designing a campaign that target the right leaders and balance your communication between the benefits of the role as well as its challenges
4. Holistic onboarding:  Designing an onboarding experience that immerses new leaders in the company culture and connects them with cultural ambassadors.
5. Executive Coaching: Supporting your new leaders in navigating their new environment through executive coaching. Programs such as LeaderShift executive coaching have been designed specifically to support new leaders during their transition period, a period that is a highly stressful and uncertain period for new leaders.
6. Feedback loop: Encouraging open dialogue about values and objectives ensures alignment. Regular workshops and training sessions can also help reinforce the organisation's values.
7. Exit Interviews: Conduct exit interviews to understand the factors contributing to leaders' satisfaction and dissatisfaction.
8. Flexibility and Well-Being: Offer flexible work arrangements and well-being initiatives that reflect the organisation's commitment to work-life integration.

The Bottom Line

Hiring and retaining leadership talent is not just about competitive salaries and fancy titles. It's about the less tangible, but incredibly powerful, sense of fit between the leaders and the organisation. When leaders feel like they're in the right place, they're not just employees—they're advocates, innovators, and the kind of leaders who create legacies.

If you need further support, feel free to contact KTalent to learn how we use organisational psychology best practices to address leadership fit. Visit https://www.ktalent.com.au/ to learn more.