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Board Failures: What Makes Boards Effective - An Independent Director’s Views
BloombergQuintOpinion
Nawshir Mirza
December 13 2018, 1:13 PM
December 13 2018, 9:05 PM

Whilst a great deal of effort has been devoted to making boards of directors more effective, the continuing cases of board failure put their efficacy in doubt. That is because all the reforms are aimed at ritualising governance and not at addressing the core issue – board behaviour. There are several factors that powerfully affect behaviour, some of which are unique to hoary societies such as India’s.

Capitalism
This influence is powerful throughout the world. It makes the provider of equity pre-eminent amongst all stakeholders and, in a democratic system of governance, this results in the controlling shareholder being lord and master of his company. This pre-eminence was snatched 400 years ago because it was the only factor of production in the old industrial economy that was scarce. The pre-eminence of the controlling shareholder means that every decision must sub-serve his interest, often to the disadvantage of the other participants in wealth creation. As long as the controlling shareholder rules the roost, the hens in that nest will do his bidding, regardless of the rituals that regulators prescribe for the flock.

A basic failing of capitalism is to measure success by growth rather than by survival. The eight-ton Tyrannosaurus Rex is history. The unicellular Cyano-bacteria is still around after nearly three billion years.
A Tyrannosaurus Rex fossil in California. (Photographer: Michael Short/Bloomberg)
A Tyrannosaurus Rex fossil in California. (Photographer: Michael Short/Bloomberg)
Also Read: Board Failures: A Series Of Columns On Corporate Governance Crises
Groupthink
This is a common behavioural problem and the regulators have attempted to get around it by increasing diversity on boards. Whilst individuals can be classified into genders, castes, religions practiced or colour, what is needed is diversity in thought. As boards generally select directors who have a corporate background, that diversity of thought is absent. The corporate system ensures that a business manager reaches seniority only after he thinks like his peers, regardless of gender.

Managers are trained to be optimists and carry this ingrained trait into the boardroom; even after they become non-executive directors; they cheer-lead rather than critically evaluate. More companies have come to grief because boards did not challenge the hubris of their chief executive officers and controlling shareholders than because of abuse of minority shareholders; the current pile of cases going through the Insolvency and Bankruptcy Code is testimony to that.

The fundamental difference between managements and boards is that the former should bring optimism to their recommendations which must be balanced by the constructive pessimism of the board.
That is the yin and yang of company survival.

Disagreement
All old cultures shy away from open disagreement and they tend to put age on a pedestal. That is how those cultures are perpetuated. The New World has no old culture to preserve and it accepts disagreement far more easily. Indian directors are loath to openly disagree, instead use hints or outside-the-boardroom discussions to express their differences. Because such conduct results in a one-on-one conversation, many critical weaknesses of an idea are not disseminated to the rest of the board and are snuffed out by an opinionated CEO or controlling shareholder. The situation is worse when the CEO or chairman is a legendary, old man; disagreeing with him is unthinkable.

Further, the attitude of many non-executive directors is that ultimately it is the controlling shareholder’s money at stake and if he is keen on doing something, why stand in his way? Even where directors believe that a plan could seriously harm the company, having raised their objections, they will then be content if the CEO glibly assures them that he will take the concerns into account in the plan’s ex*****on. Few will record dissent even if a plan could hurt a company badly because that error will only surface in the future.

Wisdom
If one plots the old hierarchy of data-information-knowledge-wisdom, against a corporate organogram, the corresponding levels are junior employees-junior managers-senior managers-the board. Why? Because the board’s principal function is to appraise strategy that management has proposed. Management develops strategy by extrapolating their business knowledge into the future. It is for the board to bring its experience and breadth of knowledge-beyond-the-business to appraise the proposed strategy. That is wisdom. Wisdom is the ability to peer into the gloom of the future to decipher the vague shapes one sees to compare with the perfect solids that management predicts.

Management is medium-term tactical, the board long-term strategic.
A crew member uses binoculars on the bridge of an oil tanker. (Photographer: Ali Mohammadi/Bloomberg)
A crew member uses binoculars on the bridge of an oil tanker. (Photographer: Ali Mohammadi/Bloomberg)
If boards are to function effectively, there are only two purposes that the non-executive directors need to serve:

1. Be the voice of those not in the boardroom.
The equity shareholder is adequately represented in the room through the controlling shareholder and management generally speaks for the employees. Customers are usually respected, though their exploitation is not uncommon.

But when have boards discussed the fair treatment of vendors or the effect of the company’s business on society, the community or future generations?
Being their champion is now the principal role of a non-executive director; the protection of minority rights is relevant only if the controlling shareholder is oppressing them.

2. Challenge management and the controlling shareholder.
Cultural conditioning means that lions outside the boardroom morph into sheep once they sit at the board table. Persons who come from the professions are generally better at constructive criticism in a group setting than are those who have been indoctrinated to applaud the boss.

In order to do this successfully, directors must possess three attributes:

They must have wisdom. To paraphrase Churchill’s words, to look back far into the past to be able to look far into the future.
They should possess integrity. To say what they think and to do what they say. CEOs and controlling shareholders can exploit a hypocrite.
They should have courage. Courage to speak up, to challenge the controlling shaholder. If necessary, to make public a serious wrong. They must be ready to face a very cold and uncomfortable situation without fear.
Some believe in expressing extreme dissent by quietly resigning. On boards, silent resignation is the coward’s way out.
For those directors who are classified as independent, the key is independence from emotional dependence on a directorship. If a directorship brings prestige to a director and he is afraid of losing that status, he will not be independent. This cannot be legislated but it is the biggest shackle to very competent independent directors continuing to sit when they must stand-up.

Good boards foster a culture that enables good behaviour from their members. As much depends on the individual directors as on the chairman or controlling shareholder to bring about such an atmosphere. A single courageous and wise director can bring change in a boardroom. The key is to foster such individuals and get them into a board.

Nawshir Mirza is a professional independent director, and serves on the boards of a number of large Indian companies.

Very relevant article by Mr Srinivas Phatak

Leverage technology for Business Impact, Role for CFOs
Published on November 24, 2018

Srinivas Phatak
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CFO at Hindustan Unilever Limited
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Every company is a data company, and this is indeed the new reality. I will stop short of calling ‘Data is the new oil’ given everything that has happened to oil markets over last 8 weeks; a very muddled picture out there.

We live in interesting times. A Capgemini linkedin publication states that in the last 12 months about 7500 fintech companies have raised more than Euro 110bn funding. Recent investments by large companies into cloud, AI, cyber security and marketing (precision) have been upwards of Euro 75bn. You read more about data, technology and analytics today than any other topic. So, I read, continue to increase my connect with the larger eco system, all to leverage technology for business impact. However, this means that I just can’t find time to read some quintessential classics or quirky modern literature! You can’t have it all I guess.

Recently I moderated an interesting round table discussion at the CII CFO Conference in Mumbai on leveraging technology for business impact and role for CFOs. Representation was broad based across the industry, consulting and fintech start-ups. I am summarizing some key messages which finance teams may find useful as they progress this exciting space.

Start with consumer and customer opportunity as you think of technology and solutions. It is still about how you are creating a customer delight or solving his / her problem.
Fin techs are re-defining the financial services customer journey. FinTech firms’ primary competitive advantages are their agility to launch and pivot, their laser focus on customer experience, and their freedom from the burden of legacy systems. However, they also face challenges in scaling their business due to a lack of trust, absence of a known brand, an established distribution infrastructure, capital, and regulatory compliance expertise that, historically, are the strengths of incumbent firms.
CFOs have dual responsibilities
Drive and support digital transformation of the customer journey and hence broader digital transformation in the business. Bring the outside in, champion the digital agenda along with the CEO and adequately / appropriately fund the digital experiments.
Transform the finance function to partner for value i.e. unlock growth and margin potential across the value chain (effective partnering). This means connecting various data sets using analytics and information and making the journey from hindsight to insight to foresight. One can also call it the journey from insight to intervention.
In many cases CFO are still trying to come to grasp with the change (i.e. what is digital transformation) while some are focused on driving efficiencies in finance and reducing finance costs. This unfortunately means that only a few are driving the required end to end business digital transformation and partnering for value.

4. CFOs / Finance function can take the below approach to partner for value while taking out transaction costs. I am not covering the broader subject of broader business digital transformation here.

First understand how much of your CORE ERP can you leverage without making significant investments. There is a 15 % -25% upside here. We lose it ‘excel-ising’ data
Define your ‘automation index’ and this goes along with ‘elimination index’ i.e. how much can be stopped, done better and faster without manual intervention. Solutions include Robotic process automation and go up the value chain. Solutions with process changes give higher and better value.
Build a funnel of projects and then prioritize using size of prize and ease of implementation. Digital projects by definition need to have a short time to value criteria i.e. secure returns within 12 months.
Information and analytics is perhaps the ‘multi bagger idea’. You can drive growth, take costs out, enhance controls and do much more. Think in terms of descriptive (what happened), diagnostic (why), what will happen (predictive) and how can we make it happen (prescriptive analysis) as a framework.
5. Culture and talent : CFO needs to be the visible face of digital transformation. Deploy your best people or get the best people to lead the digital agenda along with you.

Start small, land successes and scale up. Kill projects which don’t work and bet big when you see success. Finally, it is all about ROI and total value creation.
Transform the finance team. We need more people with data skills, statistical and mathematical background to complement finance professionals.
A lot of I & A will come by using external experts. So, time to buy and buy a lot. Don’t become slaves to a ‘black box’.
First get going, land successes and celebrate. Once it is reasonably pervasive, celebrate failures as many projects by nature will be experiments.

Never Punish Loyal Employees for being Honest
Published on July 18, 2018

Brigette Hyacinth
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My new boss told me to never be afraid to give feedback. The next Monday morning in a meeting, I happily shared my viewpoint on a new policy. Thereafter, I noticed my boss's disposition towards me changed. He stopped talking to me. I was shunned. I even felt the effects of this in my monthly performance appraisal, where he noted, I was not supportive of the organization, and I needed to be a better team player. The picture was quite clear - truthful feedback was not appreciated.

Heather, a co-worker approached me and said, "You are new, honest feedback is just lip service, don't fall for it." I quickly learned loyalists and sycophants were appreciated, while realists were punished. They built a culture of "yes employees." I knew I had so much to offer, yet I couldn't. Six months later, my boss was fired. He made a mistake on a proposal that cost the company its biggest client. This could have been easily avoided if he had just asked for honest input.

Listening is the most powerful skill a leader can master but it requires humility.
"The Emperor's New Clothes" - Promoting honest feedback
Be Humble. Many people think humility is a weakness, but it actually takes strength. It makes you approachable. The more humble you are, the more team members would be motivated to share their suggestions and recommendations with you. One of the best employee engagement tools is transparency. To be transparent requires two-way communication, therefore, feedback from employees is important. Honesty creates a solid platform to building a relationship of trust and loyalty. Employees want to be heard and they want to be respected. Listening shows that you care. Additionally when you receive feedback, act upon it. This helps improve employee morale.

PRIDE - The ego must go. The ego blinds us with a false sense of indestructibility, clouds our judgement thus leading to poor decisions and a break down of relationships. It’s not about you. Build a strong team and surround yourself with smart, passionate and highly competent people. Researchers at the University of Michigan and Northwestern University's Kellogg School of Management in Illinois in one research stated, "flattery and opinion conformity" makes leaders overconfident, resulting in "biased strategic decision making" and an overall disconnect from the ex*****on on the ground.

Developing leadership skills is a lifetime project. It’s too easy, as a leader, to feel like you have to be the one who knows everything. Great leaders recognize that they need to keep learning. Leaders need to be willing to learn and be open to seeking input from both inside and outside their organizations. Feedback allows us and the organization to grow. Additionally, treat everyone you meet with respect, from the janitor to the CEO. Great business tips may come from the most unlikely sources.

" Listening is crucial to gaining a complete understanding of situations. Without this full understanding, one can easily waste everyone’s time by solving the wrong problem or merely addressing a symptom, rather than the root cause."
Titans as Blackberry, Kodak and Nokia have paid the price for leaders who refused to listen. Their leaders operated in a bubble and engaged in group think. The greater your success, the more you need to stay in touch with fresh opinions and perspectives and welcome honest feedback. Raw truth is needed to make well-informed decisions and steer the organization in the right direction.

As a leader, your job is to encourage others around you to be open and honest without a negative consequence. When employees offer their ideas and differing opinions - be open-minded. Companies that remain strong in this competitive market, understand the need to embrace change and continuous improvement. More than ever, leaders will need to master the skill of “Lead with Listening.” The success of your business will depend on it!

Some interesting tips on how to answer the interview question "why are you leaving your present job?" by Suzy Welch

Suzy Welch: How to answer the interview question, 'Why are you leaving your current job?

If you're on the hunt for your next job, you'd better be prepared to talk about why you're trying to leave your current one.
When a hiring manager asks, "Why are you leaving your current job?," you might be tempted to respond honestly with something like, "I don't like my boss," or, "I'm not getting paid enough."
But that type of negative response will almost certainty ruin your chances of landing the new opportunity, according to bestselling management author and CNBC contributor Suzy Welch.
So how do you respond positively without being dishonest?
"Look, this question can be awkward. I get it," Welch tells CNBC Make It. "But the antidote is to avoid ruminating on your unmet wants or needs, and to focus instead on the opportunity ahead."
Here's how to strike the best possible tone:
1. Don't give a fake response
Hiring managers are generally pretty good at sensing when an applicant is being dishonest.
"Don't make up a story," Welch says. "I've said it before, and I'll say it again: Lying is never good."
Don't avoid answering the question, either — that will make you look untrustworthy.
2. Avoid looking like a boss hater
You may have legitimate reasons to be dissatisfied with your current manager, role or compensation, but in order to move forward in your career, you need to move on personally, too.
"If you're hurt or bitter, let it go," Welch says, "before the interview."
"Your interviewer is trying to assess if you're the problem, not the job," Welch says. "They're looking for signs you're a boss hater, or a job hopper, or in my house, what we call a 'whining, moaning complainer.'"
You want to come across as a mature and positive person, not someone who holds onto grudges or creates problems.
3. Show you're forward thinking
Instead of lying or speaking negatively about your current situation, give a response that shows you're forward looking.
"Make your answer about the future," Welch says.
"Turn the conversation towards why you want to join the new company," she adds. "Explain why this job is so right for your skills, your values and your career goals."
You should acknowledge that you're currently dissatisfied, but in a way that's broad and succinct.
Highlighting "slow growth" or "lack of opportunity" at your current company is a good way to summarize what you're feeling, Welch says. And after you explain why you're currently unhappy, move on.
"After your quick and courteous explanation, quickly pivot to what excites you about the new company's values, mission and culture," Welch says. "Talk about its people and its products."
This type of response will show the hiring manager that you're both honest and positive.
"Let them know you aren't only about 'you' and 'your,'" Welch says."You're about 'them' and 'us.'"
Suzy Welch is the co-founder of the Jack Welch Management Instituteand a noted business journalist, TV commentator and public speaker.

Companies spend so much money on the cost of "wrong hires" it is necessary to invest a great deal of time on the interview process.

The following article by Lou Adler lists the 10 mistakes to avoid in interviews.

10 Hiring Mistakes You Must Stop Making Right Now
Lou Adler
July 20, 2017



Most recruiters I know are guilty of at least one of the hiring mistakes below. It’s not their fault, either: these bad habits have become the norm in today’s recruiting world.

Nobody’s perfect. Fortunately, the fixes are easier than you think. A few simple tweaks here and there can make a huge difference in the quality of your hires.

Read on to see if you’re guilty of any of these common mistakes and learn how to fix them quickly and effectively.

hiring mistakes

1. Your job description is all about the “skills” and “experiences” required, instead of the work that needs to be done

Most job descriptions are preoccupied with sets of skills and years of requirements, like this:

Must have 5+ years of logistics and supply chain management experience in high-volume consumer durables, plus 3 years of supervisory experience.

This tactic seems like a good way to screen out unqualified candidates: someone with that experience is more likely to be a good fit. But it’s actually a roundabout way to get to the real question you care about: “can they do the job?”

Instead of focusing on qualifications that suggest competence, go straight to what the job actually entails. A performance-based job description defines the position through a half-dozen performance objectives, like this:

Complete the detailed project plan for the new automated warehouse in 120 days

Not only is this more engaging and informative, it’s also more accurate. Traditional descriptions unfortunately w**d out non-traditional candidates who can do the work, but have a different set of skills and experiences. Performance-based descriptions get to the heart of the job and open the door to more diverse applicants.
2. You run candidates through a series of 30-minute surface-level interviews, instead of diving deeper with a panel

Short, 30-minute one-on-one interviews waste everyone’s time. You barely get past pleasantries, which forces recruiters to lean on their first impression biases. Even if you have several of these quick interviews, you’re just retreading the same surface-level stuff. Quantity doesn’t equal quality: imagine how little you’d get from giving a candidate 100 interviews if each one was only a minute long.

Instead of a shallow one-on-one, give your promising candidates a 90-minute panel interview with multiple people at once. Not only does this give you time to drill down past the pleasantries, but it also minimizes bias, since interviewers can check each other’s subjective impressions for a more objective consensus.
3. You accept yes-or-no votes from the hiring team, instead of focusing on specific factors

When it comes time to decide a candidate’s fate—reject, move forward, or hire—many teams confer with a quick thumbs-up, thumbs-down vote, gladiator-style.

The problem is that it’s rarely that simple. The biggest thumb, i.e., the highest-ranked hiring manager, almost always wins. Voting like this is way too susceptible to groupthink: it’s always safer to vote no or just go along with what the leader says.

Instead, assign each member of the hiring team a specific factor to assses, like ability, fit, and motivation. And don’t just take their assessment point-blank: each team member should be able to share evidence that supports their assessment. That way you’ll get a clearer, fact-based picture of the candidate.
4. You rely on biased first impressions made within the first 30 minutes, instead of collecting evidence for a more measured decision

First impressions easily become self-fulfilling prophecies: if you decide you like a candidate within the first few minutes, you’ll see everything they say through that lens. When you go with your gut, you’re making an important decision based on biased emotions.

Instead, follow a semi-scripted plan to ask objective interview questions and intentionally try to challenge your first impressions. If you find that you’re really excited about a candidate the moment they walk in, try convincing yourself of their faults. If you instantly want to reject a candidate, try giving them the benefit of the doubt.

Above all, don’t rush to any decisions. You want to use the interview to collect evidence to support a hiring decision—you don’t want to actually make the hiring decision in the moment.
5. You focus on whether a candidate checks the right boxes, instead of looking at their achievements

At the earliest interview stages, it’s easy for recruiters to focus on eliminating people—and the quickest way is seeing if a candidate checks off a pre-ordained box, like X years of experience.

But you might end up cutting out the best hire—the most effective employees often have less experience than their peers, since they rise faster.

Instead of making sure candidates check all the boxes, ask them one revealing question: “What would you consider the most significant accomplishment of your career?”

By digging into real, concrete experiences, you’ll learn a lot more about a candidate than you would relying on oversimplified criteria.
6. You spend tons of time on employer branding, instead of branding the job itself

There’s no doubt that employer branding is worthwhile, especially for younger candidates. But when it comes to top-tier passive candidates, they’ll be much more interested in the job itself.

Talking about a generic, high-level company culture might entice candidates looking to make a lateral move, but it won’t be as magnetic for high-performers trying to make a career jump.

Instead, focus on job branding—the process of tying the job to a candidate’s intrinsic motivation to be part of something bigger. Top performers aren’t as concerned about the employer brand: they care more about their personal career track. You don’t need to be a well-known employer if you can appeal to a candidate’s deepest desires for personal achievement.
7. You alienate candidates with sterile behavioral interviews, instead of letting them tell their own story

Some people swear by behavioral interviews, those “Tell me about a time…” questions. To be fair, this method does reduce some bias, mostly because it requires recruiters to stick to a strict script.

That said, focusing solely on past behaviors isn’t the best option. It completely ignores questions of motivation and fit, which should be a key factor in any hiring decision. Perhaps the worst part of behavioral interviewing is that it makes for a terrible candidate experience: it often feels sterile, demeaning, and cold.

Instead, allow candidates to speak to their own experiences without strict prompts. Ask them to describe major accomplishments relevant to the actual job—they’ll be more eager to share and won’t feel put on the spot.
8. You bring up compensation in your very first discussion, instead of emphasizing the non-monetary benefits of a job change

There’s a time and a place to discuss salary and benefits, but bringing it up at the beginning of your first phone call isn’t a great idea. Doing so emphasizes the most transactional aspect of the job, when a great hire will be more interested in the opportunity as a whole.

So when a candidate asks what’s the money too soon, just say, the pay doesn’t matter if the job isn’t a career move. Then go on to say a career move requires a combination of job stretch, faster growth, more satisfaction and more impact.

Done properly the compensation will become a negotiating factor not one to filter the conversation. Building a relationship upfront is what good recruiting is all about and if the candidate’s compensation needs are out of your range, you still have the opportunity to get referrals.
9. You leave the Apply button as your only call-to-action, instead of inviting passive candidates to reach out more casually

90% of professionals are open to new opportunities, but you’re missing most of them if the Apply button is the only obvious way to learn about the job. That option is great for active candidates, but most passive candidates aren’t going to go through the trouble of applying.

Instead, make it clear that candidates can reach out other ways to learn more, whether that’s via email, InMail, or even giving you a call. The best candidates are often happily employed and won’t apply directly—but that doesn’t mean they wouldn’t entertain a casual conversation to discuss the position and a possible move.
10. You hire people interested in the job for short-term reasons, instead of finding a candidate with long-term passion

If your new hire is only in it for the money or other short-term concerns, they probably won’t be your employee for long. Before the offer is formally extended you should ask the candidate why he/she wants. If the person’s answer is vague or revolves around convenience and compensation, there’s a good chance they’ll develop job-hopping syndrome again in short order.

Instead, look for candidates who aren’t just competent and motivated—they should also see the job as a real, long-term career move. Retention is one of the most important metrics for recruiters, and candidates plagued with short-term thinking are bound to disappoint.

We all make mistakes, but not all recruiters set out to fix them. By attending to these common pitfalls and doing your best to make sure you don’t repeat them, you can make hires who are in it for all the right reasons.

Excellent talk on why not to procrastinate :)

My TED Talk - Wait But Why Everything you need to know about why procrastinators procrastinate

Useful article by James Citrin !

How Boards Interview CEO Candidates – James Citrin
Jan 29, 2016
When we work with boards of directors to help them prepare to interview CEO candidates, we develop an interview guide that will organize the conversation, which typically runs for 90 minutes. While interviews are only one step in a CEO hiring process, along with in-depth referencing and executive assessments, it is not an over-statement to say that they are the lynch-pin in the process.
Boards and search committees will always put credence in analyzing track records and relevant experience, reviewing written reports, and talking to referees. But it is in the interview where chemistry is established and essential intangibles like passion, energy, and fit are determined. As a result, at the CEO level, as well as at every step in your career, being a strong interviewer is a major advantage.
In conducting CEO candidate interviews, many questions posed by a search committee are, of course, customized to the company’s particular situation. But many of the questions are based on the essential areas in which a CEO needs to demonstrate capability: strategy and vision; growth, financial, andoperational management; leadership and team building; and Culture.
Here is the interview guide that we recently created for a board as part of a public company CEO search.
If you are an active or aspiring CEO candidate, it will serve you well to be prepared to answer these types of questions. Even if you’re not yet at the CEO level, reflecting on these questions will give you an edge when you prepare for your next big job interview.
INTRODUCTION
The typical CEO interview begins with the chair welcoming the candidate, thanking them for coming and inviting the members of the search committee to introduce themselves. He or she will then tell begin with what I believe is the best opening question:
“You have had a chance to begin to get to know our company. Why do you think this could be the right opportunity for you at this point in your career and why do you think you might be the right leader for us?”
The best candidates will answer this with a crisp 4 to 6 minute narrative about their career, their relevant experience, their professional interests and aspirations, and a top-line assessment of the opportunity. Often times this is the most important question of an interview, because as we all know, first impressions are lasting impressions. It is in this questions, along with the hellos, handshakes, and introductions, where those all-important first impressions are made.
INTERVIEW GUIDE
From that point, each area of CEO capability are probed, with selections from the following questions (all of these questions would require several hours of discussion):
Growth, Financial, and Operational Management
• Describe an instance where you have driven a company or business to accelerate growth, expand EBITDA and profitability, increase efficiency and enhance shareholder return. What was the vision and what needed to change? How did you get the organization to respond? What was the outcome?
• Describe your experience managing significant budgets and P&Ls. How did you prioritize your investments? What process did you use to gain support? What have been your experiences with tough decisions regarding budget cuts, restructuring or reallocating resources?
• With an example or two, tell us about how you have grown or changed a business or an organization through strategic partnership, joint venture or acquisition. What was the long-term effect on your business?
• Have you ever created and/or launched a new product or business that resulted in a new revenue stream?
Strategy and Vision
• What do you think are the most-important strategic priorities for our company over the next three years? What would you do as CEO to achieve success against these priorities?
• How have you developed strategy when your business faced new market entrants and competitive threats? What were the short- and long-term goals that you put in place? How did you involve others in designing and implementing change? What was the result?
• Describe your experience managing an organization as it creates new business models, products, content or initiatives that are essential to the company’s growth. How did you develop a vision and a strategy to support it? How did you communicate and gain buy-in from key constituents as the organization evolved? What were the results?
Leadership and Team Building
• How would you describe your management style? How would your staff and peers describe you? What would they say are your major strengths and/or weaknesses as a leader or manager? Where do you think you might improve?
• Explain some of the different environments that you have worked in. Where have you been at your very best? Describe the environments in which your leadership style is most effective. Where have you been frustrated and less successful?
• With an example or two, tell us something about your communications style in the workplace with your direct reports, your superiors and your staff more broadly? Also with the external community – clients, and investors?
• Tell us about a time when you took over a team that had been under the leadership of another person for a long period of time. What did you do to build support, rapport, trust and followership quickly?
Technology
• Like many companies we are experiencing changes in our operating environment due to continued digital transformation, the shifting patterns of content consumption and aggressive competitors. What have you done to implement technology improvements, e.g., platform integrations, new enterprise management systems?
• Can you share a time when you have had to expand a core product set through innovation, and particularly in a mobile environment?
• How would you bring greater innovation to our company? What innovations have you led at other businesses that are most germane?
• What business that has adopted new technology and evolved their business model do you admire most? Why?
Culture
• What is most important and valuable to you? What serves as a guiding principal in your life?
• Think back and share a story about a personal life experience that defines who you are today. What was the value/lesson?
• How have you changed cultures to facilitate innovation?
Other Questions (if not previously addressed)
• What is your assessment of where our company stands today? From your vantage point, what is the company doing right and what needs to change?
• What do you believe would be your biggest obstacles to succeed as the next CEO? What development needs and gaps in skill/experience will you need to pay attention to, and how will you address them?
• Can you give us an example of where a gap in skill/experience led you to be less effective than desired? What have you done to ensure you do not fall into the same trap again?
• Describe one or two specific accomplishments that you are especially proud of over your career and why.
• How would you approach your first 100 days in the job? How would you learn the business, build trust, generate buy-in, and develop a plan?
And finally, the all-important concluding question:
“What questions do you have for us?”
* * *
Be prepared to answer these types of questions and you will maximize your chances of acing the interview and getting a step closer to your next big job.