A company’s hard-earned fortune, reputation and culture can be squandered at the hands of the wrong executive.
Take J.C. Penney for example. Ron Johnson, who had been credited with the success of Apple’s retail stores, became J.C. Penney’s CEO in 2011. His first order of business was to forgo coupons. Within one year, the department store experienced a 25 percent drop in revenue. A Huffington Post article reported, “Sales plummeted by an astonishing $4.3 billion in the first year of Johnson’s turnaround plan.” In April 2013, J.C. Penney invited the preceding CEO, Mike Ullman to return.
The right executive can add significant value to a company, but this value (and then some) is detracted when the wrong person is picked for the job. While financial costs can be detrimental, residual consequences like loss of work time, company culture and brand identity can lead to a company’s ultimate demise.
The best way to avoid these troubles and stay on course with business success is to hire stellar executives.
The Most Admirable Traits of a Business Executive
Alice Au Miu-hing is no stranger to C-suite headhunting. She is the managing director of executive recruitment for Spencer Stuart in China. “Hiring a wrong CEO is a serious matter,” she warns. “The costs can include loss of time, fees, training resources, disruption to business, low morale and most importantly, you have to start the hiring process all over again.”
To avoid this, Au recommends looking for a particular trait that is the “cornerstone” of a good executive. Integrity. Merriam-Webster dictionary defines integrity as the quality of being honest and fair; the state of being complete or whole.
In addition, Au shares some other qualities to look for in executives.
- Keen self-awareness
- Good problem solving skills
- Likeable
There are not many measurable tests that can prove such integral traits. The only way to identify whether or not a person has these qualities is to get to know him or her.
Unfortunately, more often than not hiring an executive seems to be a time sensitive task. Damian Babis, the director of Achieve Asia reports that employers are prone to make “hasty” hiring decisions when inviting a c-suite candidate to lead a company. He says employers aren’t, “…digging deep enough into the performance record and background of the candidates, as well as not taking into account feedback from all stakeholders….”
When Hiring an Executive…
Babis tells South China Morning Post that there are increasing demands for executives in industries like information technology, financial services, medical and pharmaceutical companies, environmental protection services, agriculture and food endeavours and so on. With the important roles these companies play in the global economy it is vital that strong executives are chosen to fill these positions.
When setting out to hire a company executive, be sure to first identify the integral traits he or she ought to exemplify. Is he good with people? Does she have exceptional problem solving skills? Does he recognize his weaknesses? What strength will she leverage to counterbalance this character flaw? In spending time with the candidates, and counting on the help of trusted recruitment advisors, it is possible to find a candidate with a strong sense of integrity and so much more.
With these traits executive leadership can thrive and businesses will hopefully thrive, too.
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