Alignment matters when hiring a CEO
Things can take a turn for the worse if an organisation and its leader’s vision are misaligned
LEADERS FAILING TO DIFFERENTIATE BETWEEN PERSONAL AND COMPANY OBJECTIVES IS A REASON FOR MISMATCH
Though he cofounded Apple Company, Steve Jobs’s responsibilities were ‘restricted’ in his company after the second-generation Mac, the Macintosh Office, was launched. Differences with colleague John Sculley over the product, which had got negative reviews, led to the Board siding with Sculley, leaving Jobs without much power, forcing him to leave. At a commencement speech in Stanford later, Jobs had said, “As Apple grew, we hired someone who I thought was very talented to run the company with me, and for the first year or so things went well. But then our visions of the future began to diverge and, eventually, we had a falling out. When we did, our Board of Directors sided with him. So at 30 I was out.” It was “devastating,” Jobs said.
Though he returned later and created history with his iPhones, this story highlights how things can take a turn for the worse if an organisation and its leader’s vision are misaligned.
Alignment is the single most important step while onboarding a CEO. Shailja Dutt, founder and chairperson, Stellar Search, an executive search firm, says this responsibility lies with the board/promoter or, in some rare cases, with the HR leader.
She feels it’s imperative for the CEO to hear the same narrative from each board member. Alignment issues are usually a result of crossed communication wires. If the board members/ promoters are communicating differing objectives, it’s most likely that the CEO will align with the objectives communicated by board member he most identifies with. Differing communication on organisational objectives damages the process in another way – it shakes the confidence of the CEO coming on board, in the organisation itself.
Dutt recalls facing a similar situation when her company was involved in hiring a leader for a large Indian transnational. The candidate in question was a senior expat global leader extremely enthused about working in Asia. He met the board, but heard almost contrarian views on what the organisation needed to achieve in the next three to five years. He disengaged completely with the process. “He told me that ‘when the organisation is divided in its objective, the only thing this role will do is set me up for failure’,” she says.
Often a mismatch happens between an organisation and its leader. In those rare cases, some companies work with executive coaches who work with the CEO and his direct team to bring alignment amongst them. It is then cascaded downwards, but a majority resolves such a crisis through discussions and brainstorming, says Yogesh Sood, CMD, Blanchard Research and Training India LLP.
There could be a number of reasons for the mismatch. Leaders fail to differentiate between personal and organisational objectives. Sometimes, those who have not been involved in the decision-making process but expect to carry the baton till the finish line can also lose track of their company’s mission.
A mismatch between longterm objectives of the organisation and the current challenges can lead to misalignment between what a leader wants and how he aims to get it.
Lack of alignment in the long term usually leads to a way out of the door (for the CEO), says Dutt. Short-term alignment issues are usually well addressed by a coach or a senior board member mentoring the leader. A coach is usually a good idea as he is seen as a neutral, nonthreatening third party where it is easy for a CEO to confide and share his thoughts, ideas and concerns. However, the merit of involving the board should not be overlooked as board members understand the business objectives and deliverables better and may be in a more strategic position to identify alignment gaps, give more meaningful advice with a stronger reference to context. Mentoring is definitely useful, says Sood, in certain cases where alignment has to be built. It has to be done at the following levels: establishing linkages between personal and organisational objectives wherever possible and helping the leader concerned visualise the direct benefits and linkages between what he or she does and how the change will positively impact him or her and the teams.
Organisations need to spend considerable time in aligning CEOs to their mission and objectives while onboarding them. It is the responsibility of the board to find the right leader who may help align the short-term objectives of the organisation with the long-term goals.