Many organizations we work with are currently navigating the complexities of CEO succession planning. This critical decision-making process often brings up a fundamental question: Who makes the best CEO?
While it’s a compelling question, the answer depends heavily on the unique needs of the organization, industry, and current challenges. The search for a great CEO is often influenced by unconscious bias, personal opinions, and varying perspectives on leadership.
What Makes a Great CEO?
Experts and consulting firms frequently share insights on leadership traits, but these are often based on different types of research, ranging from small surveys to large-scale studies. For example, many reports highlight qualities like:
- Drive for results (financial and otherwise)
- Curiosity and openness to different perspectives
- Inspirational leadership that mobilizes teams
- Strategic thinking and vision
- Humility and self-awareness
While these are important, not every candidate will possess all of these qualities. Additionally, the type of organization—whether non-profit, Fortune 500, or entrepreneurial—influences the qualities that will be most effective in a CEO.
The Influence of Bias in CEO Selection
Even with extensive assessments and discussions, many boards end up favoring candidates who display charisma and confidence, traits often associated with male candidates. This can lead to unconscious bias, overshadowing the objective qualities the organization truly needs in its next leader.
Key Considerations in CEO Selection:
- Organizational culture: How will the candidate fit within your existing culture?
- Industry experience: Does the candidate have the right background?
- Company life cycle: Is your organization looking for a turnaround or growth leader?
Before making your next CEO hire, I recommend reading these insightful articles:
- Too Much Charisma Can Be Detrimental to Leadership: This article from Psychology Today explores how charisma, while often perceived as a positive trait in leaders, can actually backfire if overused. Leaders with moderate charisma tend to balance vision and execution more effectively than those with excessive charisma, making them more successful overall (Psychology Today).
- The Leadership Traits of Successful CEOs: A recent article from McKinsey outlines the characteristics that separate great CEOs from others. It emphasizes bold decision-making, stakeholder engagement, and setting a clear organizational direction as key qualities. Interestingly, charisma alone is not enough to sustain leadership success in the long term (McKinsey & Company).
For further discussion on leadership competencies and identifying the right CEO for your organization, feel free to reach out.
