There is a new rift in American business, between boards
and their CEO. According to Jeffrey Christian, Chairman and CEO of global
search firm Christian & Timbers, "It is all adding up to be the
toughest time ever to be a CEO or a board member."
Mr. Christian explains, "Just two years ago, the
problem was finding the right person out of hundreds that wanted to serve
on boards or be a CEO. Now the issue is finding people that can do the
job. People are still interested. But, they are also leery of a company's
numbers. Before taking a board seat, they must know that they can really
trust the balance sheet. In today's environment, most CEOs are over-committed,
or too busy on their own company to take on any additional responsibilities.
They have seen too many casualties in the past year. It takes incredible
enthusiasm and belief in a company today to get a world-class executive
to take on the responsibility of board member or CEO."
Problems Besetting Board Member Search Committees:
- 60% of prospective board members turn down positions (73% citing
lack of time as the reason)
- Public company board positions demand 100-150 hours per year
- The Blue Ribbon Panel guidelines recommend no more than 2 public
board positions for sitting CEOs.
- Due diligence exercised by board candidates is at an all-time high.
Mr. Christian points out that "Great candidates
really realize that the responsibility and exposure far outweighs the
opportunity in most board seats. And, the same holds true for CEO candidates.
Candidates realize that they are putting their life and reputation on
the line. It is a different world than even a year ago.”
Advice for companies about to embark on a board or
CEO search:
- Know what you have to do to attract the best candidates and be ready
to act on it.
- Outline and deal with company "skeletons" head-on.
- Understand the problems your company needs to resolve and be able
to clearly articulate them.
- Build awareness and gain buy-in from your board.
- Outline a clear plan.
- Tell all.
Advice for board and CEO candidates:
- Develop an understanding of the company's corporate governance,
strategy and vision.
- Review the state of the company, its core business and financial
position, and the competitive landscape.
- Discuss the current board composition and membership, reviewing
each of the current director's background, experiences and perspectives.
- Review today's dynamics and styles of contribution, and discuss
the current as well as desired level of individual engagement.
- Detail present and projected challenges over the next 12-24 months
(growth, globalization, M&A, etc).
"The final step in the search process is to ensure
that the chosen candidate feels connected to, and interested in, your
organization and vice versa. Take the time to create an emotional link,
build rapport and develop a relationship with the candidate. These steps
will help to ensure that your organization secures its first-choice board
director," concludes Christian.
For additional information on Christian & Timbers,
visit www.ctnet.com
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