Four rules for hiring a CEO who doesnโt suck:
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Hiring a CEO is an unusual skill.
Successful entrepreneurs usually do it poorly due to overconfidence and inexperience. (Me included)
Warren Buffettโs greatest skill was not investing - it was CEO selection and compensation. It was the one thing he focused the most on.
Successful entrepreneurs usually do it poorly due to overconfidence and inexperience. (Me included)
Warren Buffettโs greatest skill was not investing - it was CEO selection and compensation. It was the one thing he focused the most on.
Iโve hired 12 CEOs in my life. It is my most important job at Enduring Ventures.
Iโve noticed some patterns.
Great CEOs are:
1. Domain experts.
2. Masters of their budget.
3. Macro & Micro Managers.
4. Generously greedy.
Letโs go through each.
Iโve noticed some patterns.
Great CEOs are:
1. Domain experts.
2. Masters of their budget.
3. Macro & Micro Managers.
4. Generously greedy.
Letโs go through each.
1. Domain experts.
Many businesses are started by smart generalists. They often recruit someone like themselves.
Problem is, generalists learn the industry at your expense for years, then get bored.
Hire a CEO who knows everything about your industry before they start.
Many businesses are started by smart generalists. They often recruit someone like themselves.
Problem is, generalists learn the industry at your expense for years, then get bored.
Hire a CEO who knows everything about your industry before they start.
2. Masters of budget.
You need someone who has run a P&L for minimum 5 years. This means that they were personally responsible for making hard trade offs.
Usually a VP of Sales/Marketing has a very hard time transitioning to CEO, for example.
You need someone who has run a P&L for minimum 5 years. This means that they were personally responsible for making hard trade offs.
Usually a VP of Sales/Marketing has a very hard time transitioning to CEO, for example.
3. Macro & Micro Managers
You need a CEO who can see a big vision, but knows the small steps to get there.
Big company CEOs often make poor small company CEOs because they donโt understand the details.
CFOs often make poor CEOs because they donโt see the big picture.
You need a CEO who can see a big vision, but knows the small steps to get there.
Big company CEOs often make poor small company CEOs because they donโt understand the details.
CFOs often make poor CEOs because they donโt see the big picture.
4. Generously Greedy
The best CEOs I work with have a personal financial goal in mind, and it usually isnโt small.
They are motivated, however, by making sure everyone wins.
I offered one CEO a generous bonus package. He immediately split it 3 ways with his two VPs.
The best CEOs I work with have a personal financial goal in mind, and it usually isnโt small.
They are motivated, however, by making sure everyone wins.
I offered one CEO a generous bonus package. He immediately split it 3 ways with his two VPs.
When you hire the right CEO, everything starts getting better every day.
They make you wish you hired them years ago. They recruit the best people theyโve ever worked with.
I hope everyone reading can experience the joy of this.
They make you wish you hired them years ago. They recruit the best people theyโve ever worked with.
I hope everyone reading can experience the joy of this.
Anyone currently on the hunt for a CEO or has experience with a hiring process? Would love to hear what you learned.
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