100 Days Rule in New Management Role – Myth or Reality?

Both my Captain!

Any leader, whether in politics or business, knows this. At the time of his nomination or a new mandate, he will be very much expected. Scrutinized continuously, in the age of social networks and the sacredness of speed, he is often judged well before three months.

We are talking here about the famous 100-day rule in a new management role.

Synonymous with the state of grace (which is also becoming shorter and shorter) that accompanies taking up a new position or renewing a mandate, the 100-day rule makes it possible, above all, to define the axes of the collective game and to drive change. The first impressions that company directors give are very important. So much so that many of them start working as soon as possible.

We see more and more top managers settling down even before their nomination in their future position to get familiar with the field in which they will have to perform quickly.

In 90% of cases, if the chemistry is not there, time will not solve anything

It is important to listen to all the stakeholders: customers, suppliers, shareholders, and owners ... Because if you don't go and see everyone, and listen to everyone, you are sure to miss something. Some managers even hire consultants, especially when the business sector is new to them.

Humility and listening, which are essential, do not prevent the leader from setting up a dynamic and creating electroshock so that he or she can quickly feel which team members will follow or not. In 90% of cases, if the chemistry is not there, time will not solve anything. The key lies in the talent surrounding the CEO.

People are always too slow to choose the people on whom to rely. But once you give them a sense of purpose, they are much more ready than you think.

While some new CEOs advocate a complete turnover of teams, others try to work with the existing forces or change only a few positions. For many leaders, the right philosophy is the requirement that everyone, especially those at the top of the hierarchy, must do their part. Once trust is established, people follow and small victories can quickly be achieved with them.

The 100-Day Rule: Myth AND Reality

Hence the importance of the alignment of the members of the executive committee, who put their stamp on the leader. This is the case for the heads of the business units, as well as for the human resources or communications director. The latter two functions are highly cross-functional and osmosis with the CEO is essential.

Under diffuse pressure, things are accelerating. From the halfway point of the hundred days and without ever breaking contact with the stakeholders, the leader tends to already express an argued conviction: a partial strategic vision. A good CEO, who is both conductor and sky marshal, must be able to play the score of the moment and anticipate the one to be played in a few months.

More and more leaders are making a diagnosis in the first year and taking action in the second. Then, in the third year, when an external phenomenon, positive or negative, necessarily occurs, they are already on their way to doing the same thing elsewhere... They do not take the time they need to take possession of their role.

At the end of the 100 days, the leader has given a new impetus and, at 80%, has documented a clear but not completely quantified strategy. He knows where to take the company in the next three to five years. This is necessary but not sufficient.

Certainly, a hundred days or even less will confirm, or not, the position of the leader. But he still needs to be judged on the main thing: his ability to execute a strategy. And how?

For many, the stock market price is not enough. There are other parameters to look at for a CEO position in a large company: the value created over 3 to 5 years in terms of Ebitda or the evolution of cash flow compared to comparable data.

The key is probably to have the discipline to highlight what the CEO is expected to do and find the right allocation of his own time and that of his teams. All of this with the necessary distance to not get burned in the short term and never lose sight of the long term.

Thus, the 100-day rule is both a myth and a reality. A myth in the sense that it is only the beginning of something that will take much longer, but also a reality because it is necessary to approach these first three months well to then have the confidence of the teams and to implement new projects with their support.