Due diligence as a key tool in management project changes

A career change in management positions is not simply accepting a new job offer. For a manager, it’s a strategic decision  that can accelerate their career or, on the contrary, become a misstep with a lasting impact on their reputation and career.

In fact, various studies indicate that between 30% and 50% of top-level executives leave the company in the first 18 months of joining a new role (Source: Harvard Business Review). In many cases, the cause is not the lack of managerial capacity, but a poor choice of project due to lack of prior analysis.

In the same way that an investment fund does not enter a company without carrying out an exhaustive due diligence process, a manager should not commit his or her most valuable capital – his or her time, experience and credibility – without having rigorously evaluated the strength and fit of the project.

What should a directive due diligence include?

Unlike a pure financial analysis, due diligence applied to professional careers must cover five main areas:

1. Strategy and future of the business

• Is there a clear and realistic strategic plan?
• Does the company have a sustainable competitive positioning or does it depend on circumstantial factors?
• Is the growth horizon organic, inorganic, or mere survival?

2. Governance and leadership

• What is the management style of the shareholder, board or owner family?
• What degree of real autonomy will the manager have in decision-making?
• Is there alignment between the vision of leadership and the expectations of the role?

3. Financial strength

• What is the liquidity and debt situation?
• Are the budgets consistent with the reality of the market?
• Does the company reinvest in innovation, people and skills?

4. Internal culture and talent

• What level of cohesion and commitment exists in the management team?
• Does the company attract and retain talent or does it suffer from constant turnover?
• Is a culture of collaboration or silos and confrontations predominant?

5. Personal conditions and risks

• Is the compensation package aligned with the market and responsibilities?
• What reputational or legal risks may arise from the project?
• Does the position offer  professional upside (growth, visibility, impact) or is it a lateral movement with no return?

Beyond the numbers: the managerial judgment

The tool does not replace intuition or experience, but it provides an objective framework so as not to be carried away only by the economic offer or by the seduction of the discourse.

The real value of due diligence is in making hidden risks visible:

• A company with solid finances but a toxic culture.
• An attractive project in strategic vision but with interventionist-style shareholders.
• A very competitive economic package that does not compensate for the reputational risk of a sector in decline.

The manager who analyzes these elements not only protects his career, he also makes sure to enter projects where he can contribute, grow and leave a legacy.