Do I Hire a First Time or Veteran Executive?

Do I hire a First Time Senior Leader or a Seasoned one?
Often, I get asked this by Boards of Directors and CEO’s, and my answer is always: it depends. This decision is dependent on the business hurdles you want to conquer, and what stage your company is at. Are you on a public exchange? Are you turning around an organization? Start-up? Backed by Private Equity or Hedge Fund? What are the circumstances of the business? Is it well run and now needs to grow? How involved is the board and the CEO?
I recently had the opportunity to interview several Private Equity people and CEOs and ask them what worked for them. It was interesting to hear that their more successful portfolio companies have first-time CEOs and executive teams. I then asked them what that could be attributed to. They told me they felt that first-time C-Suite and VP level Leaders came with an open mind, collaborated with the board, and worked harder to prove themselves. In small, upstart companies, these executives also courageously roll up their sleeves and participate in whatever project needs to get done ( even if it is brewing a pot of coffee to keep the team going). These Leaders came to work with “a beginner’s mind.” It is also interesting to note that 80% of the PE and Board people I interviewed also did not have products that have any sales yet.
I thought I might interview a few more Board Members to learn more. That included publicly traded companies with significant revenue (over 50M) and products on the market. Interestingly, these people feel differently. They want a proven executive. They believe that they de-risk the hiring decision by hiring someone who has handled a similar situation, in a similar market, with similar or the very same customers. They want someone familiar with the intricacies of speaking
with the public markets and fostering relationships with the board of directors and leading teams.
This sentiment also shared for private equity investors, hedge fund boards, and people on the board of a turn-around organization. Managing a similar challenge successfully is what they are looking for. This is critically important, as this board of directors is looking to maximize the value of the company in a short period of time. There is no room for failure. It is also important that the C-Suite has experience in this specific market, too.
We work with companies to identify their business needs before looking for the best CEOs and their teams. We specialize in placing CEOs and Vice Presidents who perform to or beyond the expectations of the board that hires them, and we guarantee it. You can call for a free consultation regarding the hiring of your next executive.