Case Study:

CEO Selection

Situation

A national firm in the financial services industry sought Hyde & Lichter’s assistance in the selection of their next CEO. The incumbent CEO of fifteen years and the Board of Directors wanted to build a fair and objective process to select and on-board the next CEO of the organization.

Client Solution

  • Conduct an organizational study to acquire a truly keen and in-depth understanding of the business challenges facing the next CEO, including immediate, near-term and long-term issues. This consisted of interviews and focus groups with a broad cross-section of the leadership team and an electronically delivered survey to reach a wider number of key leaders within the firm.
  • Identify a framework of critical competencies required of the next CEO in order to successfully address the organizational and business challenges facing the company.
  • Develop a CEO competency model tailored to the key organizational opportunities and challenges. Facilitate discussion with the Board to ensure alignment on these issues.
  • Conduct individual assessments with the “short list” of finalist internal candidates, customized to measure behaviors and attributes identified within the CEO competency model.
  • Generate a written profile for each candidate assessed to characterize the individual, identify goodness-of-fit to the role of CEO, and provide recommendations for further executive development.
  • Conduct assessments for external candidates, including initial verbal feedback to the Board sub-committee and a written profile for each candidate assessed.
  • Conduct a feedback session with the new CEO to discuss the results of the assessment, and to design an executive development plan as it pertains to the running of the business, leadership of the executive team, and the ongoing relationship with the Board.
  • Provide follow-up feedback sessions with all internal candidates to discuss the results of the assessment and to design an executive development plan that will address essential development areas for each individual (i.e., relevant to the running of the business and effective membership within the executive team).

Outcomes

  • The Board gained a common understanding of the current and future challenges facing the organization, and agreed upon priorities for the next CEO
  • The Board agreed upon a model of well-defined competencies required of the next CEO, which it used in its selection process
  • The organization carried out a thoughtfully planned succession process in a disciplined and orderly fashion
  • The Board, Executive Team, and field leadership achieved alignment on the talent management processes and ongoing team dynamics that will be required to accomplish strategic objectives and business performance metrics.
  • Board members voted unanimously on a CEO candidate who possessed the critical core competencies deemed necessary for achieving the organization’s short and long term strategic objectives. The Board decided to contract with Hyde & Lichter for a six-month executive coaching process to assist the new CEO in making a successful transition.