One of a CEO’s hardest and most important jobs is building an executive team. Have a great executive team? You can power through the darkest of hours. Have a dysfunctional, less-than competent or highly unbalanced executive team and you’re in for a world of hurt.
• Don’t Rely on a Retained Search Firm: I’ve never been very successful in hiring execs through retained search firms. (We are 0-3 on searches done through retained search firms at BloomReach). That could be because our standards are insanely high. It could be because we are super-sensitive to “fit” – something that is very hard for a retained search firm to get right. Or it could be because retained search firms focus primarily on people in the market, who may by definition be lower quality candidates. I’m not saying you should not hire an outside firm but it is essential that you use your network to identify the absolute best candidates also– then sell them like hell independent of an outside firm. This will result in a smaller pipeline, but a much higher quality one. Remember, it is your responsibility to find the best candidate. Not the firm’s.
• Know when to bet and when not to: The most common comparison point for CEOs evaluating candidates is between the “experienced hire” and the “up-and-comer.” Some companies believe in one philosophy or the other. I think the answer is situational. We have members of the BloomReach executive team for whom this is very analogous to what they’ve done before. We have members that were total bets that worked out. We have people we have promoted from within. We have people that we have added recently and those that have been with us for 4-plus years. A good rule of thumb for me is, if you believe that the job requirements are highly creative, unique to your business, an area you want to “invent” and spend meaningful founder-time on, then hire the up-and-comer or grow the person internally. They will be more open minded, have less baggage and will be more able to think out of the box. If you believe you have more to learn from the best-in-class companies in your industry for that function, or if you as a CEO/founder want to spend a little less time on that function, hire for experience.
• Hire for Raw Smarts and Intense Motivation: Most start-up journeys involve navigating uncharted waters. I have always made mistakes when I have hired based on resume. Every candidate is only as good as the situation they are placed in. And in most start-ups, that situation relies on versatility, intelligence and sheer (street) smarts. The ivory-tower candidates are better served working in larger corporations or universities than in your chaotic start-ups. Motivation counts as much as intelligence. The ideal candidate is one for whom their success at your company is a defining career moment; where their passion and commitment approximates your own.
• Fit Matters: Most unsuccessful executive team members fail because they don’t share the culture or work collaboratively with others on the team. Ask yourself the following question: Would the new exec team member I’m hiring add to or detract from the harmony of the team. If that answer is not obvious, don’t hire them. Run the interview process through your executive team and take the feedback seriously, don’t pre-judge the outcomes.
• Master of One Function, Jack of All Others: The standard for our executive team is a clear one. Team members must be masters of the function they are leading (engineering, product, sales, marketing etc.). They must be able to get down to the level of an individual contributor on their team (and answer your hard, detailed questions) and rise to scale it at the same time. Without that, they can’t do the job. They must also be able to add meaningful value to every (controversial) conversation around the exec table. That means Administrative/Finance people need to understand the business. Product people need to understand customers. Customer-oriented individuals need to understand technology. And everyone needs to understand the culture and the business drivers.
Perhaps as valuable are the qualities that don’t matter (except as they influence the above): You are not looking for your best friend; you are not looking for the best resumes; you are not looking for the “silver bullet” whose magical arrival fixes the business; you are not looking for the best financial deal on your hire; and you are not looking to have it be primarily the group of people that helped you get off the ground (i.e. your earliest employees) since the needs of the business will certainly evolve.
In the two years since we have assembled our core executive team, I can say clearly that this is the best senior team I have ever worked with. And I sleep a lot better at night knowing that.