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Don't hire the wrong CEO.

W Bennis, J O'Toole

    Harvard Business Review
    |February 24, 2001
    PubMed
    Summary
    This summary is machine-generated.

    Corporate boards struggle with leadership definitions, causing frequent CEO turnover. To combat this, clearly define leadership, improve selection, and assess soft qualities for better executive hiring.

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    Area of Science:

    • Business Strategy
    • Organizational Behavior
    • Leadership Studies

    Background:

    • Corporate America faces a significant trend of "CEO churning," characterized by high executive turnover and short tenures.
    • This trend is often attributed to boards' unclear definitions of leadership, leading to the selection of unsuitable candidates.

    Purpose of the Study:

    • To identify the causes of CEO churning and provide actionable guidelines for corporate boards to improve CEO selection.
    • To offer a framework for boards to define leadership accurately and implement more effective executive hiring processes.

    Main Methods:

    • Analysis of leadership definitions and their impact on CEO selection.
    • Expert recommendations from leadership authorities Warren Bennis and James O'Toole.
    • Guidelines for boards to refine their strategic vision and candidate evaluation criteria.

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    Main Results:

    • A shared, accurate definition of leadership is crucial for effective CEO selection.
    • Strengthening the CEO selection process involves resolving board conflicts and focusing on strategic vision.
    • Evaluating candidates' soft qualities (integrity, meaning-making, leader development) is as critical as economic measures.

    Conclusions:

    • Boards must prioritize a clear understanding of leadership, focusing on candidates who inspire and develop others.
    • Improving the CEO selection process requires internal board alignment and a thorough assessment of both hard and soft skills.
    • Cultivating internal talent and avoiding hasty decisions are key to mitigating CEO churning and ensuring long-term organizational success.