Jarrod McLauchlan not only recruits CEOs, but he sits on a board himself and is a member of the Australian Institute of Company Directors (AICD).

He knows first-hand the traps that directors can fall into, despite their best intentions.

With over 16 years’ experience supporting and partnering with Boards in their search for their next CEO, Davidson’s Senior Partner, Jarrod McLauchlan, knows a thing or two about the process.

‘Arguably, it is one of the most important decisions a Board will make’ he says. ‘And while many Directors have had careers in executive management roles and made hundreds of appointment decisions over their executive careers, it’s important they understand that the search and selection process for the CEO role is different.’

He goes onto explain. ‘As a Board appointment, the selection doesn’t sit with any one Director or decision maker. It’s a collective decision often made more challenging by multiple views and opinions.’

Jarrod not only recruits CEOs, but he sits on a Board himself and is a member of the Australian Institute of Company Directors (AICD). He knows first-hand the traps that Directors can fall into, despite their best intentions.

Here are his top 7 tips for a successful CEO recruitment process:

1. Collectively agree on the type of CEO you’re looking for.

One of the most critical parts of the process is the beginning. Take the time to agree on the success measures and accountabilities of the role, and to develop succinct statements about the most important qualities, knowledge, experience, motivations and aspirations of a preferred candidate.

‘Creating the ‘candidate brief’ as a collective in an open forum, and not as individual Directors or even as a selection sub-group is critical,’ Jarrod says. The Board acts as a moderator of itself, so voicing opinions opens discussions and allows others to hear what others think is important.

2. Clarity avoids disappointment.

‘It happens more than you think. Two Directors having opposite views or opinions on the priorities of the next 12 months, the essential experience for the role, and the appetite for an untried CEO vs someone with runs on the board, to name just a few. It’s better to have that discussion upfront than at the final stages of the process when you have active candidates.’

Additionally, being clear on candidates’ notice period, remuneration and expectations, location and working arrangements from an early stage avoids wasting applicants’ time and avoiding disappointment at the final stages.

3. Form a sub-committee to expedite the selection of a preferred candidate(s).

Whilst highlighted earlier the importance of the entire Board getting involved in the briefing conversation, forming a Board sub-committee (typically 3-4 members depending on the size of the Board) makes it achievable to run an efficient process rather than trying to align the diaries of all Directors.

The field of applicants can be shortlisted and early panel interviews conducted by the sub-committee, who then make recommendations to the entire Board of the top 1-3 preferred candidates for further assessment by the Board.

4.  Remain at arm’s length from applicants.

Board Directors have a significant network among which people who could be suitable and/or interested in the role. Jarrod says, ‘When working with an executive search partner, it is important to have these individuals contacted by your consultant and not by the Director with the relationship.’ Even a director making someone aware of the role can be misconstrued as a ‘tap on the shoulder’ and can raise expectations of the individual and present challenges moving forward if the applicant is unsuccessful.

‘I’ve seen this impact on personal relationships negatively,’ says Jarrod. Best to play a straight bat and refer any names to your third-party independent search partner to manage this objectively. It keeps it clean, allows for an independent, merit-based assessment, and frees the Director of any uncomfortable dealing with their contact.

5.  Maintain confidentiality. Leave the due diligence to the experts.

Having an ‘offline’ chat about a potential candidate and doing your own due diligence can risk confidentiality. Networks are notorious for talking. Don’t risk losing good candidates because of a breach of confidentiality.

Leave candidate due diligence to your executive search partner. They are experts in probity checks and ensuring the values of potential candidates align with the organisation. Avoid the risk of a high-profile appointment without proper due diligence.

6.  Declare conflicts of interest as soon as you become aware.

Once again, this ensures the integrity of the process and protects the organisation’s reputation as well as protects Directors.

7.  Formal and informal meetings lay the groundwork for a strong working relationship.

Before making any final decision, it is strongly recommended that the preferred candidate meet with the full board and with the Board Chair (preferably informally). Use these meetings as a final opportunity to identify any potential misunderstandings, communication difficulties, personality clashes, or other areas of concern.

At Davidson, we’ve managed thousands of successful CEO searches, assessments and appointments for some of Australia's largest public and private organisations. And we’ve partnered with and coached many CEOs as they navigate their first 180 days, equipping them to add value faster and meet the challenges of their day-to-day working role.

To learn more about how Davidson’s Executive Search team can help you, contact Jarrod: