Philip Anderson’s article on the INSEAD web site has a provocative title: “How to Stop CEO Failure.” Here’s the teaser copy.
“Boards often think the person in the corner office doesn’t need more development, but this couldn’t be further than the truth. To prevent CEOs from flaming out in the top job, they should build frameworks to help them learn.â€
That’s true, but it’s not the whole story. Learning frameworks will help, but only if the CEO choice is right in the first place.
Leadership development starts with the choice of the CEO
If you don’t have a person with the right knowledge, skills, and abilities, you can come up with all kinds of learning frameworks, but they won’t help much. It’s a bit like trying to put a spit shine on an athletic shoe. No amount of effort or best practices will help.
So, what are you looking for? Ideally, a CEO will succeed if he or she shows up with company knowledge and relationships and industry knowledge and relationships. The further outside the company you reach for those, the less likely you’ll have a good fit.
Leadership development demands a deeper look
If your candidate has the knowledge and relationships you want, take a moment and look deeper. What’s the biggest challenge your CEO will face? Is it cutting costs? Expanding outside your national borders? What about increasing innovation? Whatever it is, if he or she hasn’t faced that kind of challenge before, the result probably won’t be what you want.
The CEO’s job is different from every other job in the company. The CEO is the decider of last resort. The CEO represents the company to the outside world and the outside world to the company. Choosing a first-time CEO may be the right move, but think twice before you do it.
Now you’re ready for leadership development for the CEO
If you’ve chosen a CEO who has the right stuff for the challenge, create a leadership development plan that will help them do better.
