How to Hire a CEO

🌈 Abstract

The article discusses the author's approach to hiring a CEO for startup companies in their portfolio. It outlines 8 key qualities the author looks for when conducting CEO searches.

🙋 Q&A

[01] Define the Ideal Candidate Through Real Examples

1. What is the author's approach to defining the ideal CEO candidate?

• Instead of writing a generic job specification, the author recommends starting with a dozen top resumes and annotating them to highlight positive and negative experiences and characteristics. This helps create a more realistic and informed candidate profile to share with recruiters.
• The author finds that recruiter-generated job specifications are often too generic and not very useful.

2. Why does the author prefer this approach over a generic job specification?

• A generic job specification can set an unrealistic bar that is "hard to meet" for candidates.
• By using real examples, the author can create a more grounded and achievable candidate profile.

[02] Choose the Right Search Firm

1. What is the author's preference for the type of search firm to use?

• The author prefers to work with smaller search firms rather than large firms that typically staff for Fortune 500 companies.
• Smaller firms often have a better network and instinct for entrepreneurial candidates, which the author finds more suitable for startups and growth-stage companies.

2. Why does the author find large search firms less suitable?

• The author believes the instincts of large search firms for entrepreneurial talent can be "off" compared to smaller firms that are more attuned to the needs of startups.

[03] The Technical Athlete, Not the "Expert"

1. What is the author's bias when it comes to industry experience for the CEO candidate?

• The author prefers to find someone who has not spent too much time in the specific industry of the startup. Too much "veteran experience" can lead to the "old way of doing things" rather than innovation.
• The ideal candidate should have some relevant industry experience, but also significant technical expertise and experience in complex engineering outside of the startup's industry.

2. Why does the author believe this type of candidate is preferable over an industry "expert"?

• The author argues that truly disruptive innovation rarely comes from those deeply entrenched in an industry. Examples like SpaceX and Rocket Lab show innovation often comes from people outside the established players.
• A candidate with a diversity of technical skills and the ability to build strong teams is more valuable than someone with narrow industry expertise.

[04] The Golden Goose not the Golden Egg

1. What does the author consider the most important qualities in a CEO candidate?

• The author prioritizes finding someone who is an exceptional team builder and leader over someone with narrow domain expertise.
• The ability to assemble a "kick-ass team" and adapt to constantly changing startup needs is more valuable than deep expertise in executing a specific job.

2. Why does the author value team building and adaptability over domain expertise?

• In the author's experience, the ability to build a strong team and navigate complex challenges is crucial for startups, where plans and strategies frequently change.
• A CEO who can constantly adapt and build the right team for each new challenge will be more valuable than someone whose expertise is limited to a specific domain.

[05] Growth Velocity Over Experience

1. What does the author prioritize when considering first-time CEO candidates?

• The author prioritizes a candidate's quality of thinking, ability to grow rapidly, and capacity to manage change and adapt to new situations over extensive CEO experience.
• The author prefers individuals who can quickly learn and grow, rather than those with deep experience, especially in new and evolving fields.

2. Why does the author value growth potential over experience?

• The author believes that experience can often be traded off for qualities like critical thinking, rapid learning, and team building, which are harder to develop from scratch.
• In new and evolving fields, the author believes a candidate's ability to learn, adapt, and build a strong team is more important than domain expertise.

[06] Synthesize Diverse Information

1. What key skills does the author look for in a CEO candidate's ability to integrate diverse stakeholder needs?

• The CEO must be able to effectively integrate and relay feedback from various stakeholders, understand their "workflows" and how the technology fits into solving their problems.
• Strong communication skills are essential for the CEO to gain a deep understanding of all involved constituents and address their diverse needs.

2. What level of technical/scientific background does the author prefer for the CEO in the early stages?

• The author states that sufficient technical/scientific background is often preferred but not essential, as long as the CEO can exercise judgment on hard technical/scientific choices.

[07] Prioritize Effectively and Make Trade-offs Wisely

1. What cognitive skills does the author value in a CEO candidate?

• The author believes that the ability to think clearly and critically, break down complex issues into their structural components, and make effective prioritization and trade-off decisions is often more important than experience in new technical areas.

2. Why are these cognitive skills more valuable than technical experience?

• In the author's view, smart individuals can quickly figure out complex issues if they have the ability to analyze, prioritize, and make decisions effectively, even without deep technical expertise.

[08] Raise Funds

1. What key skill does the author consider important for a CEO candidate, even at the development stage?

• The ability to raise funds effectively is crucial, as it can be vital for sustaining and growing the company.

2. Why is the ability to raise funds an important skill for a CEO?

• Developing and selling a vision to investors, employees, and partners is a critical skill for building a successful, large-scale company.