News and Views
February 20, 2019
Posted in: WATSON Views
CEOs can be make-or-break for organizations – results, values and relationships are all at stake.
- Almost half of CEOs fail in their first 18 months*
- CEO failures can cost organizations 40x the CEO’s base salary
- The human aspects of leadership challenge CEOs more than their traditional skills
What would a failed CEO cost your organization? Do your board practices contribute to your CEO’s success?
It’s an honest question. Boards are committed and hard-working. They understand the stakes.
Significant energy goes into CEO recruitment and CEO compensation but what about the rest of the CEO lifecycle? This is where the big wins and the big risks are hidden.
Do you know if your CEO is adequately adapting to a changing business landscape or effectively managing the critical 2ICs? Is the job what the CEO expected, and would you know either way?
Highly effective boards treat the CEO lifecycle as a mindset and a continuous activity, just as the best managers continually engage and guide their teams. The CEO is the board’s only employee; paying attention is critical.
*Research findings from HBR, Spencer Stuart and Egon Zehnder, respectively.