Why Selecting Leaders Is So Difficult In Practice – Reason #3: Companies Obsess With The Destination While Overlooking The Journey
September 7, 2016 at 9:00 AM
The most common variety of this tendency is when organizations hire skills for where they plan or hope to be while overlooking those required to get there. Consider for example the venture-funded $2mm per year company with aspirations to be a $50mm company within the next few years. Funding is tied to their lofty business goals and everyone is steadfast in their resolve. The firm identifies the need for a high caliber VP of Sales to drive revenue growth and, convinced of the inevitability of their targets, hire someone experienced in leading sales in a $50mm per year company.
A variation of this is when a company shines a light on the future at the expense of the present state. It was not that many years ago that Computer Associates was described as “the most dysfunctional big company in America”. The leadership team was ‘resigned’ and plans were made to hire a new CEO. The company’s chairman described the plan as follows, “I figure I can clean-up whatever needs to be cleaned before the new CEO arrives letting him or her focus on the strategy and growing the business”. After a formal search, the company hired Canadian John Swanson, a 26 year sales and marketing veteran from IBM.
In both of these cases the firms’ rose tinted glasses refracted the light towards the future at the expense of the tasks required to realize that future. In the case of the ambitious start-up, by hiring a resident of their destination, they overlooked the arduous hands-on work required to get there. A process-oriented professional manager may have little experience leading from the front and putting process in place on the fly. The motivation to get this hands-on may also be missing.
In the case of CA, two years after he was hired the war weary Mr. Swanson stated, “I sort of perceived, perhaps naively that I would spend only a little time cleaning up the problems and a lot of time focused on growth and strategy. I was very wrong”. They hired a goal scorer who could not get out of his own end. While in this instance Mr. Swanson proved to have the versatility to deal with the situation at hand, for others the reality is that they hire someone skilled for tomorrow’s job, not today’s.
The lesson is that selection is about the journey not the starting or end point.
About the Author
Robert Hebert is the founder and Managing Partner of StoneWood Group Inc., a leading executive search firm in Canada. Since 1981, he has helped firms across a wide range of sectors address their senior recruiting, assessment and leadership development requirements.
Contact Robert by email at firstname.lastname@example.org or call (1) 416-365-9494 Ext. 777