Leadership in Action - In Focus - CEO Selection - Room at the Top for Wise Choices

In Focus/CEO Selection

Room at the Top for Wise Choices

George P. Hollenbeck

The failure of any executive is costly, for both the organization and the executive. But CEO failure is so disruptive in terms of time, money, and lost opportunity that it can take years for the organization to recover—and that's if the damage is not fatal. Recent examples at Enron, WorldCom, and other corporations offer perhaps the most spectacular stories, but less publicized cases of the drama of CEO failure occur every day.

It's not difficult to make the case that choosing a CEO is the most important decision an organization makes. Historically, the outgoing CEO has made this decision, but boards of directors are finding that an advise-and-consent role is no longer ...