The selection of a new Chief Executive Officer (CEO) is one of the most critical and strategic decisions a board of directors can make. The right choice of CEO can propel the company to success, while an inappropriate choice can lead the organization down a path of difficulty. Here are a number of considerations to keep in mind so that boards can conduct an effective search and selection of their next leader.
Before starting the search, it is essential that the board clearly establishes the competencies, experiences and qualities that the ideal candidate should have. This includes leadership skills, industry experience, strategic vision, capacity for innovation and adaptation to change, among others. It is very important to reflect on the existing diversity in the team he/she will have to work with, and no less important to be very clear about what is not wanted for the position, as well as possible search alternatives in case of not finding the first option required.
I advise you to dedicate as much time as necessary to this reflection exercise.
It is important not to limit the search to external candidates. Often, the best candidates may already be in the organization, know the corporate culture and have an established commitment to the company. In many cases, internal promotion is the lever that empowers a team and the entire organization. Remember the “Guardiola case”.
Hiring an executive search firm can be a valuable investment. These firms have experience, resources and networks that can identify candidates that the board alone may not be able to find. In addition, these firms can work freely in the marketplace, offer confidence to potential CEOs, operate under strict confidentiality clauses and offer guarantees on their work. At this point, it is worth remembering a classic mistake that many companies make: placing blind ads looking for a CEO. never do it! If you do not work with a headhunter, and before doing something like this, it is preferable that you ask your lawyer or your consultant for a favor, and that they do it under their name.
CEO selection should be a collaborative process involving all board members. Each member can offer unique perspectives and help evaluate how candidates align with the company's values and goals. Board diversity is a key factor in selecting a new CEO and ensuring that no one is left out of the decision-making process is a guarantee of success.
Interviews should go beyond standard questions and seek to reveal how the candidate thinks and acts in various situations. In addition, psychometric, strategic and competency assessments can be very useful, and even necessary, to get a more complete picture of the candidate's potential. This is where the use of professional services becomes more relevant because they know how to do it. As far as possible, the aim is to reduce as much as possible the uncertainty in the decision making process about the person to be hired.
References are an invaluable source of information. Don't just confirm positions and dates; inquire about the candidate's performance, leadership style and accomplishments at previous employers. Even, although it may seem strange, their habits and lifestyle outside the office may be of interest. The important thing is not only to get to know the professional in depth, but also the person.
Once the CEO is selected, the board must ensure that there is a clear plan for the transition. This includes communication to stakeholders, integration into the management team and support during the first few months. It may be interesting at this point to work on an assessment or a group dynamic with the team that will collaborate with the new hire. Let's make the landing as soft as possible.
The new CEO must be able to integrate with and leverage the existing corporate culture. A leader who does not fit with the values and practices of the organization could generate conflicts and destabilize the team. A person's successful past is no guarantee for your company. Really think about who you are and what you are like as a company. In many occasions, the board does not provide enough objectivity, that is why it is important to consider an external view in the search process.
It is important for the board to have a contingency plan in case the selected CEO does not perform as expected or if unexpected events occur that require a change in leadership. In addition to evaluating alternatives in the search, it is interesting to consider the replacement guarantees offered by professional search services (recruiting firms, headhunters, etc.).
Selecting a CEO is a process that demands time, attention and care on the part of the board of directors. Following these tips will increase the chances of finding a leader who will contribute significantly to the success and sustainable growth of the organization.
Undoubtedly, and after many years of experience and having seen many failures, I advise you to reflect on each and every one of these aspects. Of course, our contact will always be at your disposal.
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