For many medium-sized businesses in Australia, the decision to bring in a high-profile executive from the corporate world feels like a strategic masterstroke. These leaders arrive with polished CVs, impressive networks, and track records of running multimillion-dollar budgets. Yet too often, the outcome is disappointment. The executive struggles to adapt, staff disengage, and the business fails to achieve the transformation it expected.
So why do executives who thrive in corporate boardrooms often falter when stepping into the engine room of a medium-sized organisation? The answer lies in cultural misalignment, role design, and unrealistic expectations.
The Disconnect: Orchestrators vs. Operators
In large corporates, executives operate like orchestrators. Their role is to coordinate, strategise, and direct teams of specialists who execute the work. By contrast, in a medium-sized organisation, executives are expected to roll up their sleeves. They are not just setting strategy; they are involved in operations, client relationships, and hands-on problem-solving.
When an executive expects to lead from a distance, but the business needs a participative leader, the disconnect quickly becomes obvious. Staff begin to feel unsupported, while the executive feels bogged down by what they perceive as “low-level” work.
Why Businesses Fall Into the Trap
- Overvaluing big-brand experience
Boards and owners often assume that a leader from a global brand will automatically add value. Yet success in a corporate giant does not guarantee success in a leaner, resource-constrained business. - Confusing prestige with fit
Hiring a “name” executive can feel like a status boost for a medium-sized company. Unfortunately, this prestige often clouds judgement about cultural fit and leadership style. - Failure to test adaptability
Recruitment processes often focus on achievements and strategy but fail to assess how the candidate will adjust to an environment with fewer resources, smaller teams, and closer customer engagement.
The High Cost of a Misaligned Executive Hire
A bad executive hire is not just expensive in terms of salary and benefits. The ripple effects can include:
- Cultural damage: Staff morale suffers when leaders appear disconnected from day-to-day realities.
- Financial strain: Paying a corporate-level salary without getting corresponding value puts pressure on profit margins.
- Turnover of key staff: High-performing employees may leave if they feel undervalued or misunderstood by their leader.
- Lost opportunities: When leadership is preoccupied with internal misalignment, the business misses external opportunities.
What Medium-Sized Businesses Really Need in Executives
Rather than seeking prestige, medium-sized organisations should focus on leaders who demonstrate:
- Adaptability: The ability to work across strategy and operations, switching hats as needed.
- Cultural humility: Executives must recognise that medium-sized businesses often have strong, established cultures that cannot simply be overwritten with corporate models.
- Hands-on leadership: Willingness to engage with teams, clients, and problems directly.
- Entrepreneurial mindset: Resourcefulness and creativity to thrive in an environment without corporate-level infrastructure.
How Recruitment Processes Can Prevent Misalignment
The recruitment of executives into medium-sized businesses must be approached with more rigour than simply scanning for impressive titles. Effective practices include:
- Scenario-based interviews: Present candidates with real challenges from the business and ask how they would respond.
- Cultural interviews: Involve staff from different levels of the organisation to test alignment with team values.
- Due diligence on adaptability: Reference checks should explore how candidates performed in resource-constrained settings.
- Clear role expectations: Job descriptions must spell out operational responsibilities alongside strategic ones.
The Role of Recruitment Partners
An external recruitment agency like Ingenious People can provide critical perspective. Rather than being swayed by big names, they assess:
- How well an executive will transition from corporate to mid-sized operations
- Whether leadership style complements or clashes with the existing culture
- The balance between strategic vision and operational capacity
- Long-term retention risks, especially when salary expectations are high
Their expertise helps businesses avoid prestige hires that look good on paper but fail in practice.
When It Works: The Right Executive Fit
It is worth noting that executives can and do succeed in medium-sized organisations when the fit is right. Leaders who are willing to adjust their style, engage directly with teams, and bring fresh thinking without arrogance can be transformative. They often introduce new disciplines around governance, reporting, and strategy while respecting the agility that smaller businesses value.
Final Word: Hire for Fit, Not Flash
Medium-sized organisations must remember that bigger is not always better when it comes to executive hires. The prestige of a corporate CV means little if the leader cannot adapt to a hands-on, culturally tight-knit environment. By focusing on fit, adaptability, and humility, businesses can secure executives who drive sustainable growth rather than costly disappointment.