Why are some boards great at hiring company leaders, while others get it wrong? Make the right choice by following these four key principles.
Some boards still pick chief executives who aren’t right for the job – repeatedly. The revolving doors at HP before Meg Whitman, at Apple before Steve Jobs’s second tenure, and at Yahoo during the past decade are a few recent examples. Writing in Harvard Business Review, Ram Charan says you can make the right decision by following the example of successful boards.
Board members who are adept at picking CEOs do four things others don’t: they’re clear about the essential qualities needed; they keep an open mind about where the best candidate will come from; they understand who is the best fit; and they fill any gaps in the chosen candidate.