The first eighteen months are where most Philippine executive hires quietly die. Not through resignation. Not through dismissal. Through a slower, more expensive process: the leader is still in the role, the title is still on the org chart, but the organization has already stopped treating the appointment as a decision that worked. Everyone knows. Nobody says.

We see this pattern often enough that we’ve stopped calling it a failure mode and started calling it a default state. Across senior search work over the last four years — for Philippine-listed enterprises, multinationals with local operations, and holding-company portfolios — the observation is consistent: somewhere between 40 and 55 percent of C-suite and senior-functional hires are materially off-track within eighteen months of start date. That does not always show up on the org chart. It always shows up on the P&L.

This is not a talent problem. The people being hired are not less capable than they were in the previous role. They are, in most cases, genuinely strong. The problem is structural, and it compounds at three specific stages of every engagement — each of which is fixable, each of which is skipped.

A hire that fails inside eighteen months was almost never a hiring mistake. It was a diagnostic one, made before anyone had a name on the shortlist.

— 01 · The PatternWhat eighteen months looks like, inside.

The observable shape of a failing senior placement in a Philippine enterprise is remarkably consistent. Months one through three are optimistic. The leader introduces themselves to the organization, runs a diagnostic of their own, and develops a ninety-day plan that is reviewed positively at the board level.

Somewhere between month four and month eight, the tone shifts. The plan begins to collide with realities that were not visible from the outside — political alignments, buried dependencies, an unstated succession agenda, a stakeholder whose approval turns out to be non-negotiable for anything substantial. The leader adapts, but adaptations compound. By month twelve, the leader is either running the role as defined or quietly discovering that the role as defined is not the role the organization needs.

By month eighteen, the organization has made its decision even if it has not named it. Some percentage of senior hires who reach this point are formally exited within the following year. The larger percentage stays — competent, paid, unchallenged, producing results at roughly 60 to 70 percent of the placement’s original ambition. This is the outcome that rarely gets studied, because it is the outcome that never gets called a failure. It is also the most expensive.

Tenure fragility for senior Philippine hires over 36 monthsLine chart showing the share of C-suite and senior functional hires still deemed fully on-track by month since start date. The line descends sharply between months six and eighteen, settling near 50 percent.100%75%50%25%061218243036MONTHS SINCE START~ 55%AT EIGHTEEN MONTHS

Share of senior Philippine hires still fully on-track, by month since start date Internal LAKAN observation across 2022–2025 engagements · n ≈ 180 placements

— 02 · The First FailureDiagnosis is almost always skipped.

The standard executive search engagement opens with a job description. That document, in the Philippine market, is usually either a lightly rewritten version of the outgoing executive’s JD — assumptions about the role inherited wholesale from the last incumbent — or a composite generated by HR in conversation with the board, which reads as a set of aspirations rather than a specification. Both are dangerous.

What is missing is the diagnostic pass — a structured conversation with the board, with the CEO where relevant, and with the direct team around what success in this role actually looks like in the next twenty-four months, and what the critical transitions are. Not what the candidate needs to have done before. What the business needs them to do, specifically, against the backdrop of where it actually is right now.

A proper diagnosis consistently surfaces two or three requirements that were not anywhere in the initial JD. One recent engagement — a head of commercial role for a mid-sized Philippine food manufacturer — began with a JD emphasising revenue growth, distribution expansion, and channel innovation. The actual, unstated requirement was reconciling two long-standing internal factions whose quiet disagreement had made any commercial initiative a political event. Nobody had put this on paper. Everyone on the executive committee knew it. The JD was pointing at the wrong problem.

Hires made against the wrong problem fail. Sometimes spectacularly. More often, they fail quietly — the leader performs against the stated brief and is judged against the unstated one.

The diagnostic pass is not an expensive step. It is a two-to-three week engagement involving structured interviews with five to nine stakeholders, a written synthesis that names the real problem, and a short document that specifies what the next hire must be able to do — in behavioural terms, not resume terms. Most Philippine enterprises skip it because it feels like time spent before the search. Every firm we’ve worked with that has institutionalised it says it is the single highest-return hour of the engagement.

— 03 · The Second FailureThe shortlist as ceremony.

The second stage where engagements quietly fail is at the shortlist. This is the moment that looks the most competent to observers — a well-presented set of three to five strong profiles, each with the expected depth, each cleared through a rigorous-sounding process. It is also the moment where most of the real failure mode gets baked in.

The Philippine executive market is not deep, and it is unusually small once sector specialisation and cultural fit are factored in. For many C-suite searches in local enterprises, the realistic candidate universe is between 40 and 80 individuals. Against that population, a shortlist of the top five is not a filter of the market — it is a sample of who was available, who was known to the firm doing the search, and who was willing to engage. The discipline of a real shortlist is not producing five names. It is being able to defend, candidate by candidate, why these five and not another ten.

What we see in most local shortlists is candidates who fit the JD, not candidates who fit the diagnosis. This is the compounding failure from stage one. When the diagnosis is skipped, the shortlist optimises for resume alignment. When the diagnosis is done properly, the shortlist begins to look different — sometimes uncomfortably different. Candidates from adjacent industries. Candidates whose resume does not read CEO-ready but whose practice pattern matches what the role actually demands. Candidates who weren’t looking.

The firms that get this right in the Philippine market share a pattern. They are willing to present shortlists that the board initially finds uncomfortable, because the diagnosis gave them the language to defend the choice. They do not present obvious. They present defensible.

— 04 · The Third FailureIntegration as afterthought.

The third failure mode is the one that surprises most executive committees when we name it: integration. The assumption baked into most senior searches is that the placement ends at offer acceptance. In a well-run engagement, the hardest work is starting.

The first 180 days in a Philippine enterprise are structurally different from the first 180 days in a Western corporate context. Relationships are hierarchical in public, horizontal in private, and mediated through specific trust protocols that take time to map. A leader who moves too quickly reads as disrespectful. A leader who moves too slowly reads as passive. The organisation has not told them which is which.

The organisations where senior hires succeed at high rates are the ones that build a structured integration program around the placement — not an HR onboarding checklist, but a board-sponsored integration engagement spanning the first two quarters. That engagement has three elements: a structured listening protocol for the first sixty days, paired sponsor-level mentoring from a senior board member or the CEO, and measured feedback checkpoints at 90, 180, and 360 days that sit separately from the normal performance review.

None of this is visible on a LinkedIn profile. None of it is what firms compete on in their pitch decks. All of it is what separates a placement that holds from a placement that quietly comes apart.

Placement is the beginning of the engagement. Most firms treat it as the end.

— 05 · Four Diagnostic QuestionsAsk these before you see a shortlist.

When we work with organisations on executive hires — and particularly with organisations that have just quietly lost someone they thought would hold — we push toward four questions that a disciplined hiring process should answer explicitly, in writing, before any shortlist is presented.

  1. What does success actually look like in this role over the next twenty-four months — measured in outcomes, not activity?
  2. Which of those outcomes requires a specific capability that the current internal bench does not have, and which requires a specific cultural competence that the JD does not express?
  3. Who, in the realistic candidate universe, has actually demonstrated both of those — and who merely reads as if they could?
  4. What will the first 180 days look like, and who owns the integration?

Organisations that can answer all four before starting the search have placements that hold at rates between 20 and 30 percentage points higher than those that cannot. That is not a rounding error. That is the difference between a senior hire being a net benefit and a net liability over the life of a contract.

— 06 · ClosingThe lesson most firms learn the hard way.

The uncomfortable honesty in this work is that most senior hires that fail in the Philippine market fail not because the search firm found the wrong person. They fail because the hiring organisation was unable to specify the right problem. The executive being hired then inherits that ambiguity, works against the wrong definition of success, and is eventually judged against a standard they were never told existed.

This is recoverable. The same organisations that have burned through two or three senior hires often do dramatically better on the fourth, once they have been forced, by failure, to do the diagnostic work they should have done at the start. The cost of learning that lesson the hard way sits somewhere between fifteen and twenty-four months of the wrong leader, and between eight and thirty-five percent of the total compensation package in failed-placement economics.

It is cheaper to diagnose first. It is also harder. Which is why most don’t.

— Author

M. Santos

LAKAN Practice · Executive Search

Leads LAKAN's executive search practice. Two decades across senior leadership mandates for Philippine enterprises, multinationals with local operations, and portfolio companies.