Define your CU’s non-negotiable criteria
Knowing what the organization needs most can help top leadership make key decisions—like who to hire as the next CEO.
At CUES Symposium on Monday, Ram Charan described how a big technology company he worked with chose its new CEO.
When the company’s board didn’t agree with the current CEO’s vision, it announced his upcoming retirement and retained a headhunter, explained Charan, a world-renowned business advisor, author and speaker who has spent the past 35 years working with many top companies, CEOs and boards. The headhunter narrowed the field of candidates to two: an internal one and an external one.
The internal candidate was a division guy who had worked within the company all his life. The external candidate was a highly celebrated CEO. Both were known to the board chair. Each had passed the test on key criteria of energy and character.
When the board chose the internal candidate, Charan asked the chair about the basis for the decision.
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