Thursday, January 15, 2009


It's easy to spot a bad chief executive once the damage is done -- a plunge in company earnings, a failed product line, a corruption scandal. But how do you spot the flaws before it's too late, before that person is given the job of leading the company?

Here are some warning signs that board members and search committees can look for in a prospective CEO's character, and measures they can take to reduce the likelihood of hiring a dysfunctional CEO.

Here are some of THE WARNING SIGNS ...

• An overt zeal for prestige, power and wealth. A manager's tendency to put his or her own success ahead of the company's often is evident long before that person is ready to assume the CEO post.

• A reputation for shameless self-promotion. Executives and managers who constantly seek publicity, are always looking for a better job or trumpet their successes while quickly distancing themselves from setbacks are sending strong signals that their egotistical ways may eventually cause major problems.

• A proclivity for developing grandiose strategies with little thought toward their implementation. These executives may assume that others at lower levels will magically turn strategy into reality.

• A fondness for rules and numbers that overshadows or ignores a broader vision. This is the flip side of the preceding problem.

• A reputation for implementing major strategic changes unilaterally or for forcing programs down the throats of reluctant managers. CEOs have to be consensus builders.

• An impulsive, flippant decision-making style. CEOs who approach decision-making with clever one-liners rather than with balanced, thoughtful and informed analyses can expect to encounter difficulty.

• A penchant for inconsiderate acts. Individuals who exhibit rude behavior are apt to alienate the wrong person at the wrong time.

• A love of monologues coupled with poor listening skills. Bad listeners rarely profit from the wisdom of their associates.

• A tendency to display contempt for the ideas of others. Hypercritical executives often have few stellar accomplishments of their own.

• A history of emphasizing activity, like hours worked or meetings attended, over accomplishment. Energy without objective rarely leads to improved organizational performance.

• A career marked by numerous misunderstandings. There are two sides to every story, but frequent interpersonal problems shouldn't be overlooked.

• A superb ability to compartmentalize and/or rationalize. Some executives have learned to separate, in their own minds, their bad behavior from their better qualities, so that their misdeeds don't diminish their opinions of themselves. An important internal check is missing. Others are always ready to cite a higher purpose to justify their bad decisions.

NOTE:This article was taken from "Keys to Spotting a Flawed CEO -- Before It's Too Late" By TERRY LEAP.

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