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Advanced SearchThe Secrets of great CEO selection
When it comes to selecting a new CEO, judgment really matters. The
choice may devastate a company or create enormous value. In his work
advising companies, Charan has observed that some board members are
especially great at succession decisions. In this article he describes
how they go about picking the right candidate. Directors who excel at
selection zero in on the two or three distinct capabilities that a CEO
will need to thrive at the firm in question. (Charan calls this the
“pivot” because the succession decision turns on it.) For example, when
IBM was conducting a CEO search in 1993, many thought it should hire a
technologist, but two directors saw that what the company really needed
was an executive with business acumen, a customer orientation, and
execution skills. At their urging, the board brought in Lou Gerstner,
who quickly turned IBM’s $8 billion loss into a $3 billion profit.
Astute directors also keep an open mind about where the best candidate
will come from; they shed assumptions about insiders and outsiders and
may even consider a leader a few levels below the CEO. They go deep to
understand which person is the best fit with the pivot, doing their own
due diligence. Finally, they allow for the imperfections in the chosen
candidate, figuring out which gaps can be filled by other executives or
corrected with coaching. [ABSTRACT FROM AUTHOR]
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Penerbit | Harvard Business School Publications : Boston., December 2016 |
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p. 52 - 59
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0017-8012
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