CEO Selection
The selection of a chief executive officer is the most expensive human capital investment a modern organization will ever make. It is essential to look beyond the candidate’s technical expertise and assess cultural fit and the behaviors required for success.
Before: Board Tackles the Problem of Selecting Best Candidate for CEO Position
"We were less than one year into a CEO succession program when our founder and current CEO suddenly died. The top three candidates at the time were two layers down in the organization. In the trio was a very bright, thorough young leader with an impressive academic pedigree. Already looking the part – tall, well-dressed and articulate – he had successfully turned around one of the company’s business units in the previous five years. An additional asset was a fine appreciation for the financial aspects of the business – something that had been lacking in the previous CEO.
"This candidate immediately looked good to a lot of the board members, but a few had reservations. We decided to call in RHR International to review all three candidates and make a recommendation on which one would be the best fit for the position."
After: Thoughtful CEO Selection Process Determines Key Success Factors
"We immediately conducted in-depth interviews with senior management and the board members to identify factors critical to the success of the incoming CEO. While capturing obvious attributes such as financial acumen and strategic thinking in this profile, we also delved deeper to identify more subtle psychological attributes. Interviews clearly indicated that some thought the lead candidate lacked humility. In talks with an RHR consultant on developmental programs, the rising star argued about how he was assessed. We did not recommend him as a good fit for advancement.
"After we presented our recommendations to the board, they selected the candidate who had most closely followed our developmental advice. The other aspirant was given additional responsibility and a vote of confidence. The new CEO remains with the organization to this day and is acknowledged as one of the reasons for the company’s success."