The process of selecting and hiring a CEO, especially a first CEO to follow a founder, is a critical and long process. Good models for leadership selection exist. Churches often take more than a year before selecting their primary clergy. Symphony orchestras will use guest conducting assignments to interview prospective musical directors. There are many other examples of structured search procedures to find quality leadership. Yet often a business board of directors will feel pressure to act and make a hasty selection of someone who is known and available. There is a reluctance to use an interim CEO strategy to carefully select a CEO.
The board of directors should consider an immediate appointment of an interim CEO (even where the founder is hanging around) to take the time pressure off. The interim CEO may or may not be considered for the permanent position depending on the circumstances. Candidates need to be recruited from all sources including advancement of existing executives, recruiters, and open advertising. There needs to be a selection group comprised from all levels of the business employees. That group can conduct initial interviews and develop a short list. From that short list, after a number of careful interviews, the board can narrow the selection and begin to address the terms of the executive compensation and employment agreement. This process is difficult and time consuming, but when the new CEO is confirmed the energy from the confidence in the process of the appointment will surge through the business. The process will also stand the board in good stead when it comes time to formally review the performance of the CEO (another process that is often omitted).
