There are very few opportunities for a company to improve organizational performance and culture by taking one single, solitary action.
In the six months after Marissa Mayer was hired as Yahoo!'s CEO, the market value of the company increased by $17 billion. Imagine making one decision that created $3.8 million in market value an hour! At nearly the same time Yahoo! began its rapid ascent, Ron Johnson, the new JCPenney CEO, caused sales to plummet—by $4.3 billion. A single decision of his brought losses of $500,000 an hour!
Those are two diametrically opposite examples of how hiring an executive leader can dramatically impact an organization's bottom line. Hire a “star” and you'll win because they'll inspire innovation, invigorate employees, and generate wealth for the company. Choose poorly and you'll suffer serious financial penalties. A bad hire may even mortally wound an organization, with far-reaching consequences. The ripple effect of corporate failure impacts an extensive food chain, from stockholders to customers. These days, no organization survives long without strong leadership.
Organizations today live in a glass pressure cooker with the heat turned on high. An expanding global economy coupled with shareholders who aggressively demand positive financial results at the speed of a Ferrari have driven executive turnover to an all-time high. Not surprisingly, and in exponentially increasing numbers, companies are engaging outside assistance when recruiting senior ...