| "Oh yeah, I definitely feel out of my depth | | | | charter.... Is it just a wall-hanging, or a |
| at times. But I think that if you don't | | | | code they live by?A. Quiz board members on |
| occasionally feel out of your depth you're | | | | their knowledge of the charter and answers |
| either not growing anymore, or you're kidding | | | | will provide your first clue.Q. Do board |
| yourself, or you're not pushing the | | | | members seem "tenured" or do board members |
| organization hard enough." Comment in | | | | change according to the skill mix needs of |
| Unlimited from Grainne Troute - CEO | | | | the organization's life-cycle?A. Very easy to |
| McDonalds. Grainne has an HR | | | | see how long each board member has |
| background.Potential CEO's come from a much | | | | continuously served and whether board members |
| wider range of business disciplines than even | | | | have to retire by rotation and offer |
| five years ago and perhaps CEO applicants can | | | | themselves for re-election, and whether after |
| benefit from my real-world, in-the-trenches | | | | say two terms they have to stand down for one |
| questions and experiences on both sides of | | | | complete term.Q. Does the Board go through a |
| the CEO fence. If you have had a career | | | | formal evaluation process? |
| largely in one discipline to this point then | | | | |
| these questions will enable you to think of | | | | Whole Board? |
| the CEO role in broader terms.Questions, many | | | | |
| of which are in the considered "soft" areas, | | | | Chairman? |
| have potential answers that will help you | | | | |
| make a balanced decision as to whether your | | | | Individual Board members?A. If not, why not? |
| potential career move will be a good fit, and | | | | Perhaps it has never occurred to them, |
| if so, increase your chances for success in | | | | perhaps the Board is too new or perhaps it is |
| the role. | | | | considered too threatening by individual |
| | | | Board members.Q. What are the sacred |
| The alternative?I describe it as the | | | | cows?A. I am pleased to report that in most |
| "eighteen-month club." You are hired, the | | | | cases there are none. However, understand |
| board has great expectations on sales and | | | | whether there are any sacred business |
| profit growth..... you make the right noises, | | | | processes, unprofitable/low-profit customers |
| six months go by, twelve months and the board | | | | you are "requested" to retain, or any |
| starts questioning "Where are the results?" | | | | untouchable personnel.Q. Why did they |
| and by eighteen months you are in the | | | | consider making the job offer to you?A. Job |
| departure lounge along with 15-20% of the | | | | descriptions are broad and so what |
| CEO's from the Fortune 1,000. You have | | | | specifically out of your background is it |
| joined the eighteen-month club!So it is time | | | | that they think you will do?Were they looking |
| to start probing:Q What stage in the business | | | | for a celebrity CEO, someone who will build a |
| life-cycle is the organization in?Initial | | | | leadership team, a consensus builder or |
| high-growth; maturity; decline or the start | | | | someone who will drive change? Roles are |
| of the 2nd growth cycle? Is there widespread | | | | broadly characterised as growth navigators; |
| recognition and acceptance by individual | | | | execution maestros; turnaround surgeons or |
| board members of the life-cycle stage?Q. | | | | business model transformers.Do you think they |
| Does the company strategy have a long-term | | | | will want you over the longer term, or will |
| sustainable competitive advantage? How do | | | | they transition to someone else once their |
| you know?A. Instead of just relying on | | | | initial goal with you is met?Q. Have they |
| information provided, have you completed a | | | | structured your proposed compensation package |
| S.W.O.T? Talked to customers and | | | | for growth or stability? Do they want you |
| ex-customers? Talked to competitors? | | | | for the long term?A. An easy way to determine |
| Searched the internet? Found industry trend | | | | the answer to the first question is to look |
| information? Looked at benchmarked | | | | at what percentage of the package is at risk? |
| data?Q. Has the business model passed its | | | | Twenty to thirty percent probably means that |
| "use-by" date?Aggregators, e-commerce, new | | | | they are looking for high growth. That said; |
| competitors or technology may all have had a | | | | make sure you can control all KPI's. For |
| major negative impact on the business. Does | | | | example if there is a percentage related to |
| the board truly recognise it or are they | | | | EBITDA growth and you are in a service |
| still in denial and in the mode of trying to | | | | business will they let you change staffing |
| make a silk purse out of a sow's ear?Have | | | | ratios to improve profitability?A balanced |
| they considered a Greenfields approach to the | | | | approach is to weight a portion for sales and |
| development of a business plan?"If I were | | | | customer growth, net profit improvement, plus |
| starting the business today would we do | | | | a percentage for business reinvestment. BP |
| business the same way?"If not, then the board | | | | is the best example of this balanced approach |
| should have directed the development of a | | | | to senior executive compensationQ. Is there a |
| business plan recognising: industry trends, | | | | stock option component?A. How will it be |
| new technology, competitors, factors | | | | triggered? After KPI's are achieved, after a |
| impacting on the business model, geographic | | | | set time period, or at the discretion of the |
| factors related to sales and support and | | | | board? Are they just holding out a "future |
| traditional and non-traditional competitors. | | | | promise" or is it a genuine offer? What is |
| e.g., in the check printing business | | | | their track record in this area?Q. Finally, |
| considering the impact of credit and smart | | | | what is the board attitude to people? Do |
| cards.Q. Has the board gone through the | | | | they have a view that "people are our most |
| cost-cutting phase, or are they locked into | | | | important asset" or do they view staff as a |
| ongoing cost-cutting?A. No-one ever downsized | | | | "cost of business" or some point in between. |
| to greatness. During the process of | | | | Do they believe in investing in |
| downsizing trust and morale typically are | | | | people?A. Unless you have the ability to |
| destroyed. Unless the board is focussed on | | | | hire, motivate and retain the strongest team |
| re-growth strategies and not further | | | | then the business is likely to remain a "me |
| cost-cutting, then I would suggest that your | | | | too" company with higher than average staff |
| tenure will be short-lived as you will not be | | | | turnover usually accompanied by low customer |
| demonstrating additional profit from new | | | | satisfaction.This implies the right culture, |
| business acquisition.Q. Is the board focussed | | | | values and at least being in the top one |
| on the short or long-term?While the board may | | | | third in compensation bands for your |
| talk about being "in it for the long-haul" | | | | industry.The first 103-daysThis is the most |
| look at what shareholders and board members | | | | critical time following your appointment and |
| have done in other situations. Are they | | | | certainly sets the future culture under your |
| long-term players or typically just looking | | | | regime. Clearly before you start your new |
| for a quick return?Q. Will there be a | | | | role, and with your now good knowledge of the |
| business reinvestment strategy or is there a | | | | company time should be spent on your Action |
| single-minded focus on shareholder returns | | | | Plan for the first 90 days at least.This plan |
| right now?A. To this point there may not have | | | | will include further fact-finding, meeting |
| been calls to reinvest in the business. A | | | | personnel, understanding production and |
| leading question to ask then is: "What has | | | | distribution processes or service offerings, |
| been their track record either in this or | | | | meeting both current and former customers or |
| other business interests?"Q. Is it a public | | | | clients and suppliers. Good information on |
| or private company?If private, who are the | | | | which to base your plan.However, do not |
| key shareholders? It is important to meet | | | | underestimate the need to create a support |
| one-on-one with each of them to consider such | | | | network and build a coalition around your |
| things as: | | | | strategy and implementation plans. No single |
| | | | person can successfully grow a business. |
| - is there a dominant personality? | | | | Identify and groom your motivated |
| | | | torch-carriers.Conclusion:Your success as a |
| - will they let the chair do their job? | | | | CEO is not totally dependant on positive |
| | | | answers to these questions.In addition to |
| - has the board been "stacked" or are there | | | | being experienced, well-educated and |
| the right disciplines to take the | | | | intelligent and articulate you must have the |
| company forward? | | | | ability to inspire others.This involves a |
| | | | highly developed social quotient to move |
| - will directors do what is right for the | | | | quickly and successfully in a complex, |
| company, or dosome board members pursue | | | | multi-layered and fast-paced environment. So |
| personal agendas? | | | | it is now time to hone your skills of |
| | | | empathy, integrity, stamina and flexibility |
| - will primary shareholders continually | | | | in a variety of business and social |
| second-guess theCEO by calling in regularly | | | | situations.After all, you must become the |
| at offices or taking staff tosocial events | | | | passionate torch-carrier for your new |
| etc? | | | | organization.Denis Orme Founder Performance |
| | | | Leader of the Leadership Success Institute, |
| - Is the owner or dominant shareholder an | | | | he has been heavily recruited by start-up |
| entrepreneur?Typically they are short-term | | | | businesses through to Fortune 500 companies |
| players, not interested somuch in planning | | | | to analyze operations, develop and implement |
| and have a "Do it - fix it" mindset.Q. Does | | | | change management and repositioning |
| the board truly understand their role?A. My | | | | strategies, and return organizations to |
| experience with private corporations in | | | | sustainable profitable long-term growth.Cited |
| particular is that the board does not stick | | | | in Who's Who in Emerging Leaders, Who's Who |
| to strategy design, and then evaluate the CEO | | | | in Sales and Marketing and Who's Who in |
| on his or her execution of that strategy. | | | | Industry and Commerce. |
| Too much time is spent debating operations. | | | | |
| This discussion does little to ensure the | | | | He has received leadership awards from the |
| long-term profitable operation and market | | | | American Lung Association, Business |
| superiority of the business. Again, using my | | | | Volunteers for the Arts and the Greater |
| experience this is not such a factor in | | | | Houston Partnership. |
| public corporations.Q. Governance | | | | |