Choosing Your Organization’s Future
One of the most critical junctures in an organization’s life occurs when it has to choose a new CEO. Significant change is inevitable, and board and management need to make a number of important decisions. Depending on the organization, these decisions might include:
- Reviewing/renewing/updating the strategic plan – deciding the organization’s direction, goals and objectives for the future;
- Reviewing the role of the CEO – is the status quo satisfactory or is there need for adjustment, or even transformation;
- Updating the CEO’s job description – if the existing JD has been around for donkey’s years, maybe it needs a tune-up, particularly in the area of qualifications and abilities;
- Reviewing the organization’s structure – is the organizational chart and reporting structure all it should/could be?
- Assessing—and preparing for—the impact of the change in leadership on the organization;
- Coming up with a plan to source and attract suitable applicants, screen and interview them, and choose the perfect candidate.
As smart managers, you begin this process at least a year—preferably 18 months—before the existing CEO’s retirement date. You establish a search committee that recognizes its limitations when it comes to #6, above, and decides to hire a search firm. With their guidance, the committee develops a timeline and materials that describe both the position and your organization and, with some trepidation, turns the search company loose.
The search company provides regular progress reports, and builds an impressive list of potential candidates who meet your criteria. Then comes the day when the rubber meets the road and you have to develop a long list of interviewees. The search company makes this process as straightforward as possible, but it’s not easy to pick “the best”. Finally you narrow the list down to 6 – 8 candidates who you’ll actually meet in person and interview.
As you meet the chosen few, you realize your choices are going to be even more difficult than you anticipated; the candidates present themselves very well and you’re impressed with the questions they ask. But, when push comes to shove, you agree on two front runners to interview again, this time in greater depth. You collaborate with other committee members about questions that should be/need to be asked. At the same time, the search company is doing all the background checks and other necessaries. You may decide to introduce the final choices to your senior managers and/or your board before the final interviews to get their input.
Finally, you meet with the candidates on the short list, and you make sure you cover every possible aspect of their potential relationship with your organization. You also ensure they have the opportunity to clarify any issues they may have. You don’t want any questions or doubts remaining on either side at the end of the interviews.
If you’re lucky, the committee will agree on the preferred candidate, and if you’re really lucky, any managers/board members who met the individuals will agree with the committee. If you’re not so lucky, it’s time for dissection, analysis and negotiation. By the end of the meeting, you’ll either have to decide on the new CEO or decide who to recommend to whoever will make the decision. Then, of course, the search company (and thank goodness for the search company, which made the whole process manageable!) makes the offer on your behalf and you negotiate a remuneration package with the successful candidate.
And there you have it, 12 to 18 months of preparation and work that culminates in essentially choosing your organization’s future. Granted there are no guarantees, but you feel confident in your choice and your anxiety level has diminished significantly. Going forward, however, only time will tell…
— Lyn Policha, Policy Analyst, WJS Canada