Building a high performing executive team is crucial to business success and the creation of value. Most Boards will experience the need to bring in external executive talent at some point during an investment term, but unfortunately recruiting executives is fraught with risk, with research demonstrating that 50% of executive hires fail.
As experts in Due Diligence, we have prepared a series of insights to show you how operating a robust recruitment process can significantly reduce the risk. Initially, there are three big questions to consider
1. What Are We Looking For?
A lack of high-quality decision criteria leads inevitably to poor returns. So at the outset, clear and succinct selection criteria need to be established and communicated. These should cover the core professional knowledge, skills and experience required for success in the role, and the personal values needed for a ‘fit’ with the desired business culture and existing team.
Clarifying what you are prepared to compromise on and what is a ‘must have’ helps decision makers, candidates and third party agencies alike.
Keep the list brief – it’s much better to have six vital elements than twenty!
2. How do we decide on the ‘one’?
Input from a range of stakeholders should be collected using the key selection criteria. Stakeholders involved in assessing a candidate must be skilled in being able to uncover objective evidence of capability, and report back with facts not opinions.
Decisions on any shortlisted candidates should be taken collectively, although a casting vote may be needed. It is critical to set the roles and accountabilities in any decision-making group up front.
Be prepared to reject all candidates if needs be. Executives can make or break a business. The consequences of taking the best of a bad bunch can be dire.
3. How Do We Get A Rapid Return on Investment?
Despite the claims of the deluded, no-one is perfect! Everyone has development needs. No matter how much expertise a candidate has, once they start they will need to adapt to their new context.
Feedback from the insights gained through the recruitment process can increase productivity in the first few weeks. The very best performers will expect a personal development plan that spans their first 100 days and beyond – everyone will benefit from this approach.
Whilst executive recruitment cannot be entirely free of risk, a well-structured approach can reduce error and improve the likelihood of a positive outcome.
If you want to de-risk your recruitment process then contact Continuum Group, a firm of Human Capital Experts who support investors, Boards and businesses in clarifying selection criteria, assessing accurately and developing high performing executive teams.
