Who Makes the Best CEO?
Many of our clients are in the midst of succession planning –if not searching–for their next CEO. For us, that means we have been exploring several interesting—and vexing—questions associated with this topic. Probably the most common question is this: What makes a great CEO?
I love this question because the answer is exactly what an organization needs to determine to be able to compare candidates to that image. On the other hand, I hate this question because I know that the answer depends on who you ask and what unique circumstances an organization or industry is currently facing. And, on top of everything else, the answer is typically influenced by bias, unconscious and otherwise.
Naturally, there are many individual experts, consulting companies, and researchers who have perspectives on this. Those perspectives can be based on both real-world experiences over time and/or rooted in “research” (though the research can be anything–from small client surveys, to academic studies).
For example, sometimes experts report on the “latest” survey findings of what makes a great CEO. I read those surveys because I am curious. However, I then ask myself, how valid and reliable was the survey? How big was the sample size? Were the samples randomly selected or self-selected? Who answered the survey…CEO’s? Board members? Employees? Or were actual outcomes (e.g. financial results) correlated with CEO characteristics?
And furthermore, what kind of company are we talking about? Non-profit? Fortune 500? Entreprenuerial? Family-owned? International? Local?
So, who do you trust and who really knows?
Like many of my colleagues, I stay as current as I can about what other experts say. I have noticed some similarities across the different experts when it comes to identifying key competencies. But, when some of the details do differ between expert opinions, it’s hard to argue that ANY of the competencies identified are NOT important and critical. Then yet another survey by yet another expert comes out, and it reveals new characteristics and eliminates past ones. Geez.
I tell my clients that certainly, there is some general agreement about some characteristics and competencies that are typically important (e.g., drive for results—financial and otherwise; open-mindedness; curiosity and genuine interest in the perspectives of others; inspiration and the ability to mobilize a workforce; strategic thinking and ability to describe a vision of where the organization is going; humility; self-awareness.) However, the odds of finding one candidate who possesses them all is unlikely. And, my clients need to determine if these characteristics fit their specific needs.
Another vexing reality is that these characteristics, while important, are not the only things a Board will need and want to know about a candidate. What about the nature and breadth of past experiences, and subject matter expertise? Some individuals have been CEO’s before, some haven’t. Some have been CEO’s in several different industries, and some have only been in one. And what about the organizational culture? Will a particular CEO “work better—or worse” for the current culture?
Clients also should consider where the organization is now. Where is it in its life cycle – are they looking for a turn-around of direction or maintenance? What is your culture? What talent exists or is missing in your organization?
My clients are aware of these complexities—at least intellectually. However, they are also somehow still hoping for that “magic” answer that will allow them to predict with confidence that they have the “right person”.
Despite careful consideration and identification of “what we need in a CEO”, despite spirited dialog, feedback, and/or assessment data, lack of agreement and ambiguity can lead to a dangerous reliance on unconscious bias about who makes the best CEO.
As an example, time and again, I see clients choosing the person who has the most charisma and/or confidence. When that quality exists in a candidate, unless there are other clearly disqualifying criteria, that person is believed to be the most leader-like and competent. And, I am sad to say, it is often a male candidate.
I suggest that before you do your next search, read these 2 articles by our friends at Hogan Assessments
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Dig deeper into your own bias about who seems to make the best leader among your final candidates. Are you falling for charisma and what appears to be confidence? Or are you truly considering what your organization needs right now? Send me an email, I would be glad to talk with you about what you discover.
