It’s hard to know which does more damage, having a bad leader or having no leader at all. Boards feel an urgency to fill leadership vacuum. But appointing wrong CEO leads to organizational instability, loss of key individuals, lowered morale and poor execution. Two or more failures in a row can send a company into an irreversible tailspin. Complex emotional and political dynamics along with ever-present time constraints complicate and slow selection process. Boards can shift odds in their favor by increasing objectivity during senior leadership selection. Regardless whether an internal or external candidate is called for, using an unbiased, independent consultant as part of selection process provides boards with a way to increase their chances for a better “fit.” First -- Determine What’s Needed Before even initiating a search, committee needs to ask, “What do we need now in a CEO and what are we likely to need in future? What are competencies that already exist in our senior leadership and where are gaps?” “Do we need someone adept at furthering our leadership development program or do we need someone with a track record of successfully integrating differing cultures?” It goes without saying that more precisely you can define your company’s current and projected needs for next 5 years, better. While this seems obvious, it’s striking how many search committees look at candidates first, then go back and determine whose competencies best mesh with company needs. When directors determine criteria initially, they are in a position to drive succession process. Otherwise they are likely to be led by others who have a vested interest.

A complete analysis of company needs considers existing strengths of senior management, current operating environment and strategic framework for future growth. Boards today, pressured as they are with governance and compliance, report having less time to devote to succession preparation.

An independent consultant -- with no vested interest or preconceived formula -- helps board members compress time required to conduct this analysis. The consultant then has firsthand knowledge of nuances of business and can assist with objectively evaluating “fit” of candidates.

External Search Obstacles The executive search industry is a relatively small field, and nature of business is to opt for known commodities. “Star players,” culled from highly visible senior positions, appear and reappear on recruiters’ short lists. Yet hiring a “star” is a poor predictor of success.

Leadership success is highly dependent on context. Without right “fit” executives who thrive in one company may flounder in next. Note recent failure of several CEOs recruited from top ranks of GE – a company lauded as a leadership incubator. These candidates not only offer no guarantee of success, but also frequently require large incentives and guarantees regardless of their performance.

Many start-up businesses fail within first year of existence. This is especially so with businesses started from home, or exist without traditional bricks and mortar structure we are so accustomed to. And, far too often reason many start-up businesses fail has to do with emotional challenge new business owner faces. The challenge of seeing him or her self now as a business owner, rather than a paid worker for someone else's business. It means dressing differently, thinking differently, and talking differently. It means believing that you are already successfully established even if you have a long ways to go on business's balance sheet. To put simply, if business owner doesn't have a firm belief and commitment in business and his or her role as owner, then others simply won't be convinced that this business is place to get what they need.

Then, there is crucial issue of having financial intelligence to keep business going in direction new owner desires. To put it simply, if new business is only taking money to operate and not making money, it won't be long before doors of opportunity become closed. No matter how much motivational self-talk and emotional pump-me-up new business owner does, it is results shown on bottom line that determines future of new business. And, if bottom line is steady generating a negative, business will eventually lose. Far too many new business owner simply don't understand this simple fact and it's incredible impact upon future of his or her business. And, far too many system based business endeavors, such as network marketing, fail to properly focus majority of their teaching on this.