Highly talented people who have been successful in every previous assignment in their career sometimes spectacularly fail. This comes as a surprise, to friends, colleagues, bosses, above all to the individual concerned. Public examples include Carly Fiorina at Hewlett Packard, Bob Nardelli at Home Depot, and now, to all appearances Paul Wolfowitz at the World Bank. In organizations all over the world this fall from grace happens regularly, often under the public gaze. Each situation is different, but I think there are some common themes:

  • Excessive confidence. If you have never had a career setback you tend to develop a pretty elevated opinion of your ability. The leader who has always been conspicuously successful tends to hold his or her abilities in excessive esteem, and is also likely to underestimate the complexity of unfamiliar situations and the intricacies of new organizations.
  • The wrong priorities or substantial strategic mistakes. It is possible to bet an entire company on a particular strategy, and some leaders do exactly that. In 1996 GEC plc, the UK company that had existed since 1886, appointed one George Simpson, who proceeded (presumably unintentionally) to destroy the company by selling its core businesses and investing heavily in telecommunications, just as the boom was reaching its peak. This resulted in one of the largest destructions of shareholder value ever. Westinghouse and Enron perished similarly.
  • An over-developed ego. During the Fiorina reign I saw a framed photograph of Herself in the lobby of an H-P facility, arms crossed, hair coiffed, poised to take on the world. A photo of the senior team might have sent a more inclusive message. Ego and immaturity tend to go hand-in-hand, and the symptoms can be the same. Investing in and becoming very attentive to lavish corporate offices and unseemly perks are signs of a oversized ego that will alienate colleagues and customers alike.
  • Lack of genuine qualifications. I don’t mean lying about diplomas or degrees, but inadequate real preparation for the role. In our honest moments we admit that we sometimes get better marks than we deserve. People with glowing track records didn’t always do such a great job. Sometimes markets were favorable, or the problems to be addressed not overly challenging. Outsiders remember the results, not how difficult it was to achieve them. Some people do well in a variety of assignments that on close examination weren’t really so challenging. With promotion come tougher jobs. When the tide turns the incumbent may find that he lacks deep experience of tough challenges.
  • An inability to form a relationship with the organization. (See my advice for Mr. Wolfowitz’s successor ). A new leader needs to build an effective team, largely from within the organization, and must make some form of bond with the whole entity. This doesn’t mean cozying up or accepting the status quo, but it does require that he or she is seen to invest some time and effort in communicating his or her ideas and supporting the people who have to put them in practice.
  • Of course, in some cases the job is impossible. Some leaders are doomed to failure, and no matter whom you put in there you re going to get the same result with the resources available.