Good chief executives are tough to find (and tougher to keep)
Good chief executives are in high demand and susceptible to being attracted to new, more demanding and better-rewarded positions. Just when things are going well, a board may face the need to replace an effective chief executive.
Just to survive, let alone thrive, an organisation and its leadership need to be dynamic and adaptive. Many boards have to face the fact that even a chief executive who has served an organisation well historically is not necessarily the best person to take the organisation forward.
When appointing its chief executive, the board should ensure it has canvassed the field to attract the best person for the position. Affordability is often an issue, resulting in the appointment of chief executives who are relatively young and inexperienced in general management. The board must recruit with its eyes open, remaining conscious of the trade-offs it may need to make.
All candidates should be assessed for appropriate skills and experience, compatibility with the organisation’s culture, and an understanding of, and empathy with, the organisation’s core purpose, strategic aims and general business. An ability to develop an effective partnership with the board and key staff and stakeholders is vital.
Boards have no one to blame but themselves if their chief executives disappoint them
In seeking a new chief executive a board should consider adopting a process that includes, or at least considers, the following main steps:
Developing an agreed description of the qualities of the preferred candidate – a clear and agreed description of the type of person it feels will provide effective leadership to the organisation over the next three to five years.
There are four important sources of information for this purpose, of which three are internal: staff, volunteers and board members.
Staff/volunteer perspectives – these provide the board with valuable insights into the type of leadership these two key groups require. It also gives the board a snapshot of the organisation’s internal health. This process should be designed to increase these key stakeholders’ sense of ‘ownership’ of and support for the appointee. Facilitated focus group discussion involving representatives of staff and volunteers is one way to approach this.
District/regional associations’/member organisations’ perspectives – given the structure of many sport and recreation organisations the selection of the chief executive is a critical decision. They play a vital linking role and must be able to influence other parts of the organisation without any direct authority. This requires relationship management skills and emotional maturity.
Board perspective – it is important that the whole board takes an active part in the recruitment process. The desired qualities sought in the new appointee should be discussed thoroughly at the outset, although a working group is likely to do most of the work. Again, a facilitated workshop is worthwhile.
Delegating the recruitment process to a committee is recommended, providing effective liaison if recruitment consultants are used.
External stakeholder perspective – overall success is dependent on the development and maintenance of successful relationships with other agencies. The chief executive is the crucial link with these parties. There is value in gaining input from these stakeholders. This can be revealing for the board, highlighting the current state of the relationship between the organisations.
Which is the more expensive option, a thorough and professional recruitment process, or years of organisational underperformance and/or a messy and expensive termination?
The board might choose to conduct the recruitment process itself or might elect to seek the assistance of a specialist recruitment company. The determining factor is likely to be financial.
If the board chooses to use outside assistance, and within an agreed budget, an external recruitment consultant could be tasked with advertising and/or searching to produce a shortlist of candidates for more detailed scrutiny by the committee. Typically, this process would involve documenting the attributes of shortlisted candidates including psychometric test results.
From these steps it should be possible for the committee to recommend a preferred candidate (or perhaps two) to the full board for final consideration.
Most hiring decisions are made primarily on the basis of easily identifiable or recognisable characteristics. Subsequent ‘firing’ decisions are almost always made on the basis of attitudes and aptitudes.
A recruitment process should go beyond the easily distinguishable.
It is vital that the whole board participates in and owns the outcome of the selection process.
It is recommended that specialist advice be taken on both the employment contract and any performance agreement aspects of the appointment.
The new chief executive, particularly if appointed from outside the organisation, should be well briefed and prepared via a thorough induction.