CEO Search Case Study

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Leadership

The specific attributes that I think will be best for a CEO during this of transition are as follows: Innovation leadership, vision, motivation. The CEO is going to be expected to be a leader, but there are different types of leadership. Transformational leadership is something from which Yellow Company will benefit. There are a few reasons for this. The first is that we have new products and businesses coming on stream, and these need to be integrated with the vision. In addition, we have expanded through mergers and acquisitions of late, and we need to integrate these other organizations into our own, under a common corporate culture and banner. It is important, therefore, that the leader is able to establish a long-term vision that transcends this short-term period of change. Then the leader needs to get the company, including the new acquisitions, to buy into this vision. The vision will feature innovation, since that is a core part of our mission. Thus, the leader needs to be able to create an environment that encourages creativity and innovation rather than stifling it. The combination of innovation leadership, grand vision and ability to motivate is compelling and will be what I look for in a new CEO -- the soft skills to go along with all of the technical constraints.


With respect to the questions, I would actually ask each candidate the same question. It's a two-part question and gets right to the heart of the matter. What's your vision for Yellow Company, and how will you execute this vision? I want a CEO candidate who has done his or her homework and knows this company well enough to have coherent answers to these questions. I'm not interested in a vague answer that any business school undergrad could give -- I want specifics. I am not looking for somebody who is uncertain about their vision, and I certainly don't want to hire a CEO who needs to learn on the job for six months. This company needs leadership and it needs it now.

In this answer, I'm also curious to hear what the candidate says, or doesn't say, about shareholders and share-based financial measures. The reason is simple -- if they start going on about shareholder returns, EPS and that sort of thing I'm not interested. Great vision doesn't start with worrying about pennies per share over last year's quarter. My job is to make the best choice on behalf of the shareholders and I imagine the shareholder to be a long-term shareholder. I don't care about value for day….....

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