By: Paul Croteau
Date: October 10, 2010
The Winnipeg Sun

It is a well known fact that a new chief executive officer (CEO) in any organization typically has about 18 months to develop trust and to demonstrate change and progress toward stated objectives.  When this doesn’t happen, these senior executives are often sent on their way. In fact, approximately 25% of executives are shown the door due to poor performance. Others see the writing on the wall and willingly resign and fade quietly into the sunset.

Unfortunately, in many cases the situation is really one of the wrong skills at the wrong time. In other words, the individual just wasn’t right for the job in the first place yet somehow got through the recruitment and selection process. And the damage created by hiring the wrong person can be tremendous. Not only can a termination such as this cost the organization three to five times the position salary, it will also negatively impact many other areas of the organization.

The potential of CEO turnover also then raises the important issue of how to select the right executive search firm to conduct your next search assignment. Whereas anybody can hang out a shingle and call themselves an executive recruiter, or link themselves to an affiliate to make themselves look “global”, it is important to fully evaluate the capabilities and experience of the search firms before assigning the search project.

The following guideline provides you with assessment elements that should be considered.

Consulting team – be careful to ensure you know and trust the consultant who will be working on your behalf. Learn as much as you can about their professionalism.  Inquire if they personally have a reputation for being successful or whether their own career consists of disjointed moves.

Check the track record – don’t let the list of clients on a website fool you. Check to determine if positions were actually filled or whether another consulting firm had to be called in to finish the job. Ask for client references, especially for those assignments that were particularly difficult.

Confirm the sourcing process – finding the right CEO for an organization requires in-depth research and marketing of the opportunity. Determine if the search firm has research capabilities so that hidden candidates can be approached with the opportunity.

Confirm the interview process – if your search professional is meeting the candidate face to face for the first time in front of your client interview panel, then the search process is flawed. Every potential candidate needs to be thoroughly interviewed, not simply by telephone but in person, face-to-face prior to being recommended to the client.

Insist on client partnership – search consultants who work as lone wolves and who resist client involvement typically have preset views of your candidate qualifications and salary requirements. They rarely listen to client needs.

Watch for hidden costs – some search consultants charge an hourly rate for candidate research over and above their consulting fee. Look for an all inclusive rate. Know what you are buying so that there are no surprises.

Seek local market rates – don’t let a big firm perception lull you into paying bigger fees than you need to. Search has in fact become a commodity and so prices are quite standard. Check out the cost with all your potential search firms; ask for a definition and rationale for each expense.

Build a relationship – the most effective way to utilize the services of an executive search firm is to build a long term relationship. You need to trust the search professional that your interests are being served and that conflict of interest is nowhere to be seen.  Help the search professional to fully understand your organization so that he/she can help build your teams, rather than simply focusing on a singular appointment.


Research and review by Candace Weselowski, Legacy Bowes Group.

Paul Croteau is Managing Partner of Legacy Bowes Group, Manitoba’s leading Talent Management Solution. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .