The CEO is the apex decision-maker in an organisation, facing pressure from the board, investors, employees and the market, while trying to stay aligned with the company mission. It’s the CEO’s job to work and communicate effectively with all these stakeholders to drive the company forward to achieve its goals. They are responsible for hiring, firing, retention, company culture and making difficult choices. The CEO is ultimately accountable for the company’s success or failure, which is why it is crucial to hire the right person. In the life sciences, selecting the wrong CEO is not only expensive but also impacts the lives of patients everywhere. Here, I outline five key factors when choosing the right CEO for your company.

1. Carefully evaluate your situation

The need to hire a CEO usually arises from a crisis. This can create a temptation to act in haste and to select the easiest, most risk averse option. However, it’s important to think about why you are focusing on a specific type of person. For example, an internal candidate could seem to be a low-risk promotion into a CEO role and, whilst this may in fact be the case, it is imperative to evaluate whether they will be able to push the organisation in the direction it needs to go. No two hiring situations are the same, so it’s crucial to evaluate what the organisation actually needs in the current market and how different stakeholders will respond to a new CEO.

2. Do your due diligence

It’s crucial to be honest about where your company really is in order to get the right CEO for your company. How is it performing against competitors? How well is it growing and what is its reputation? From there, you can define the due diligence process stating exactly what you want to achieve with a new CEO, their essential requirements and the compensation required to attract the quality you need. Consulting with executive search firms will provide you with an outsider’s perspective and help calibrate your expectations against the current market. An executive search firm should ask the right questions to find out what the ideal candidate looks like and advise on what can be realistically delivered.

3. Avoid common pitfalls

There are many common stumbling blocks companies can run into when hiring a new CEO. For example, being unrealistic about the company’s current performance and situation, and therefore overselling the opportunity. In addition, it’s important to remain open-minded in the selection process and not move too fast with one candidate you think will be the best from an initial evaluation. Any internal candidates must be put through the same hiring process as external candidates. Putting all of your eggs in one basket risks losing other potential candidates who may have been a better fit. It’s important that you effectively communicate with the board, investors and the internal team about the hiring process so that the company can make a good impression on all the CEO candidates. At the end of the day, you must remember that it is the candidate’s choice whether they take on the role.

4. Refine your required skills and characteristics

Realistically analysing how you want the new CEO to lead the company will enable you to compile a list of the specific skills and traits they will need to demonstrate through the process. Relevant characteristics to look for might include clarity of vision and the ability to articulate it to a range of stakeholders. Authenticity will enable a CEO to build rapport and respect with stakeholders. CEOs who can constructively and proactively communicate bad news will ensure the company can move forward in challenging times. A healthy level of curiosity and diligence will enable a CEO to lead an organisation with agility and dedication. All CEOs must be able to motivate the team and help people to do their job more effectively, without doing it for them.

5. Partner with an honest search firm

Partnering with an executive search firm helps ensure that you make an informed decision. A search firm with in-depth market expertise and access to a wide pool of talent will help you find a candidate with the right combination of skills, experience and characteristics to take your company where you want it to go. By selecting a reliable search firm that will perform diligently, you will receive consultative advice and support in building a trustworthy connection with the CEO marketplace. RSA has 43 years’ of experience in the market and puts people first, ensuring the hire is right for both the employer and the candidate.

If you want to talk – please contact me at Nick.Stephens@theRSAgroup.com.

Share this: