Insights
Spencer Stuart: Predicting CEO Success
Spencer Stuart released a thoughtful article about how the selection of a new CEO is a high-stakes decision for any board. Amid intense scrutiny and pressure, boards must consider extensive information about individual candidates and its relevance to the success of the business. While nearly every experienced CEO (97%) outperformed the market in their first role, only a minority of CEOs (38%) managed to hit the same benchmark in subsequent roles.
Understanding the real drivers of performance can help boards focus their decision-making and select the CEO who is most likely to succeed in light of the opportunities and challenges the company faces. As a product of their prior experience — or lack thereof — CEOs deploy different mental models in how they lead, resulting in different areas of focus and performance patterns.
This article outlines:
- The experience playbook
- Learning from scratch
- Year 4: a pivotal moment
- Experience or potential: the implications for CEO performance