Understanding and Minimizing CEO Failure
Why do CEOs fail? How can someone who has had great success in a previous position have such a high failure rate as a CEO? How can a successful CEO suddenly lose his or her edge?
By understanding the reasons for unsuccessful appointments, we can take steps to prevent—or at least minimize— the failures.
In a study of more than two dozen cases where the CEO was terminated, RHR International found four basic causes for failure.
- Poorly Defined Position Requirements.
- Improper Assessment of Candidates.
- Changed Business Context.
- Changed Individual.