Don't Seek Approval When Hiring the Next CFO
Seeking Input Vs. Seeking Approval
As the CEO, you should seek input from others when making important decisions, like hiring a c-suite team member. Although it is critical to listen to other people’s opinions on the candidate, you don’t need approval from them to make the hire.
There is a difference.
Different opinions, some of them quite strong and even in dramatic disagreement, generate dialogue around candidates which is healthy and important before making a hire. After these discussions take place, however, it’s the CEO’s role to make the final decision. The CEO does not need approval, or dare I say, team consensus, to make the hire!
The article, What Sets Successful CEOs Apart, describes four key behaviors and characteristics people should look for when hiring a CEO, but I’d say it applies to any C-Suite hire. One behavior, “Deciding with Speed and Conviction,” strongly relates to my work with A-Player CEOs who are looking to hire A-Player CFOs. As the article states:
“High performing CEOs do not necessarily stand out for making great decisions all the time. Rather they stand out for being more decisive…They do so consistently, even amid ambiguity with incomplete information and in unfamiliar domains.”
The hiring process, by design, means that others involved in the interview process will not have experienced all the touch points that the CEO and the recruiter (me!) have with the candidates. Even the recruiter and CEO will never have perfect, complete information, so it’s my job to help CEOs make decisive decisions!
You may be tempted to follow old adage “Hire Slow and Fire Fast,” but we should modify this. Take all the steps necessary to thoroughly vet a new hire, but don’t take an unnecessarily long time. Speedy doesn’t mean you didn’t think it through.
I want to help lead you to a great hire as quickly as possible to minimize interruption in your business.
Why Do Hiring Managers Move From Seeking Input To Seeking Approval?
Fear of a Poor Hire
There is usually a sense of urgency when a position first opens, but actually going ahead to an offer can be scary. A C-suite hire is a significant investment, not just in terms of compensation, but time to onboard. It can be disruptive if it doesn’t work out (let’s discuss this more below)! The reality that there could be a hiring mistake starts to cloud urgency. We start to hear comments like, “I just need to check with one more person…” Don’t let this be you!
Too Many Cooks in the Kitchen
The more people involved in the hiring process, the more likely that seeking input turns into seeking approval. The CEO may start to doubt the direction when even one interviewer dissents. It’s important to understand what’s behind the dissension to determine the impact/importance. But, it is ultimately the role of the CEO to synthesize the input and take responsibility for a decision.
A-players want to be a part of a company that acts confidently. Candidates who value quicker decision making and movement (a clue about overall culture) pick up on indecisiveness and may lose interest in the opportunity.
The Wrong Hire Was Made. What Now?
As the article points out, “Good CEOs realize that a wrong decision is better than no decision at all.” Although we want to make the right hire the first time, dragging out the process can be more harmful to an organization. If a poor hire is rectified quickly, organizations will usually be just fine!
Let me give you an example:
I made a poor hiring decision years ago. It was my fault and I felt bad. Really bad. But, I figured it out within 90 days.
I ran into another CFO in my industry who shared that he had hired someone from my shop (the person I let go). He said it took them a year to finally let this poor fit go. My decisiveness was a positive for the rest of my team and the organization who endured my bad decision for only those 90 days compared to an entire year. It allowed the organization to move forward quickly and put the disruption behind them!
In the same way that you need to be decisive to make the hire, you need to take decisive action if a change is needed.
We’ve talked about the need to seek input but not approval, why consensus is often sought, and what to do if a poor hire is made. We’ll dive deeper next Tuesday, January 26th on how to find your Decisive Executive that can help your organization thrive!