Many privately-held technology companies are defined by their ability to attract the right leaders to deliver their vision. Hiring processes are pivotal moments that often define future trajectories. Despite the critical nature of such hires, we find many companies embark on this journey without the requisite level of planning or internal collaboration, a shortfall that often can be identified as the root cause of failure and the division that sets in within teams from the wrong hires during periods when many companies are striving for growth. We consistently find that Founders, Executives and Investors look for comparators outside their company to set the benchmark or expectations for a hire versus bringing together a common view internally that can unify teams on the actual requirement for an executive. Without this view, hiring processes can typically become biased toward the hiring manager, unrealistic and take too long.
That said, how do you overcome this challenge effectively? We have developed a methodology at Faraday Partners to clearly set and measure the expectations for a key executive hire. It starts by covering fundamental questions and getting multiple stakeholder viewpoints documented on the key parameters for the success of the desired candidate. We want to share these questions publicly to enable those looking to set up an executive hiring process to do it with the right preparation – removing the defects we see time over that limit value creation, inhibit the impact and tenure of expert talent and reduce the ability for companies to deliver their vision.
The Ten Crucial Questions
- What is the most critical outcome of this position for you?
The critical goal is to reveal stakeholders’ priorities and expectations and see how this aligns with the company and market context. We rarely find this question has been fully developed.
- What is the second most important outcome of this role for you?
Asking a stakeholder to rank their second most important outcome can reveal the directional and strategic differences amongst teams on the journey ahead. It can help prioritise the list of candidate experiences and goals and drive alignment between hiring teams.
- How does this candidate need to operate to be successful in the role?
Clearly articulating the behaviours of the candidate to be hired can expose the appropriate mindset and approach to unify team expectations. Reducing the risk of friction and going beyond the ‘culture fit’ quagmire is the outcome here.
- What would make them a great fit for the team?
Unearthing strong opinions from the hiring team about the fit to the function and wider organisation is vital to determine how the hired candidate could be most accepted and deliver success.
- How could they most effectively complement the wider organisation?
Broadening and checking the points revealed in the question above can extend the input of stakeholders to evaluate the leadership profile and candidate mindset to deliver overarching goals.
6. What would be the most valuable piece of prior experience they could have to be successful in the role/organisation?
Identifying experiences that directly contribute to the candidate’s potential success in the unique organisational context is key. This exposes the missing expertise and experience most desired by the hiring team.
7. What aspect of their professional or functional expertise would enable the candidate to have an increased impact?
Isolating the executive and functional expertise that could amplify the candidate’s effectiveness within the role is critical. This can target the search for candidates but also drive alignment in the hiring team on what is needed and how to assess that in the hiring process.
8. What do you consider to be the biggest challenge to overcome for the candidate to be successful in the role or organisation?
Anticipating potential obstacles, allowing for proactive planning to support the executive’s success and bringing issues into the open are extremely important and far too often concealed or forgotten. This question can prepare the organisation to address these changes in advance and set up candidate success.
9. What would be clear red flags for you in this candidate for this role?
Identifying deal-breakers before starting the process and addressing strong views or potential roadblocks is the responsibility of the hiring team. These issues are often left to the decision stage, but setting clear boundaries in the hiring design is the hallmark of the most talent-centric businesses and CEOs/Founders.
10. Is there anything unusual or anything you need clarification on about this hire?
Opening the door for addressing any hesitations or unique concerns that could impact the hiring decision is a worthwhile final check. Giving a point of closure where all points should be considered is a healthy way to move forward and ensures everyone has been heard and due diligence is in place.
Why do these questions matter?
The best companies are defined by their people. The best companies have the best people because they constantly remove the ambiguity of hiring expert talent. If you don’t plan hiring in a structured way and tackle the core questions you are inherently increasing the variation in a process and limiting the candidate’s ability to deliver to the expectations or market opportunity. A rigorous set of questions, as we have shared, is the starting point for the process of having the best leaders. When we meet companies struggling to attract and hire leaders or those who have had failed executive appointments we nearly always find that the majority of these questions were never even considered. Research also supports the efficacy of such an approach:
- Strategic Alignment: A study by McKinsey highlights that companies that align their hiring strategies with their business goals are 1.5 times more likely to report organisational success than those that do not.
- Cultural Fit: According to research from the Society for Human Resource Management, executives who are a good cultural fit are up to 30% more productive and have significantly longer tenure.
- Operational Success: Data from the Corporate Leadership Council indicates that executives whose operational styles align with the company’s strategic needs are 70% more likely to achieve their performance targets.
Hiring an executive leader carries profound implications for the future of privately-held tech companies, both good and bad. By embracing a collaborative question-based planning process, stakeholders can substantially reduce the ambiguity and misalignment that often plague executive hires. The ten questions shared serve as a starting point to help bring teams together to attract, assess and hire leaders to deliver strategic objectives at the core of value creation. We hope they are useful to your evaluation of your next executive hiring campaign. If we can help assist in the definition of the right leader for your organisation please do get in contact with us.
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