CEO selection advice from the Harvard Business Review

This Harvard Business Review article on CEO selection is worthwhile reading for Nominations Committees.

Once credentials are established – the part of the CEO selection process that focuses on the candidate’s CV and career track record – interviews should then primarily focus on how the candidate would apply themselves to the hiring organisation.

Our experience is that the candidate presentation, followed by Q&A, is the most effective CEO selection tool. The title of the presentation should be simple and open. For example, “My 1st year plan as CEO of your organisation”.

As the HBR article suggests, the presentation serves to check broad alignment with the board on the approach. It should also check alignment on expectations, i.e. what the CEO expects to deliver and achieve, by when, and what they need to deliver on those expectations. A good CEO will also identify to the board what s/he expects from them.

The presentation will also demonstrate how well the candidate understands the business and the market, and how structured s/he is in their approach.

Critically, it will highlight how much the CEO candidate wants the job – the best prepared, best researched, most comprehensive presentations are typically accompanied by a real appetite for the challenge. Clients often neglect candidate motivation.

Candidate presentations are best performed in person at the last stage in the CEO selection process, by which time s/he should be sufficiently informed about the business to prepare a credible plan. Clients may wish to share information under NDA to ensure that this is the case.

In addition to the presentation, a well-rounded set of verbal references and completion of a psychometric profile to uncover any weak spots – there are always weak spots – should help ensure, as much as possible, that the CEO appointment will be successful. A structured, scored selection process is preferable. Look for evidence that:

  1. The candidate can do the job. That they have the skills, experience, and personality required
  2. The candidate really wants the job. That they have the motivation, often best demonstrated by the quality of their presentation
  3. The candidate is broadly aligned with the board in both approach and expectations

To discuss CEO hiring in confidence, please contact the Managing Partner, Daniel Osmer.