When a board of directors sets out to find a new CEO, the process often reflects the individual perspectives of its members. Each board member brings their own experiences, worldviews, and expectations to the table, leading to varied interpretations of the challenges of the organisation and the qualities a successful CEO should possess. This diversity can enrich discussions but can also complicate the selection process, making it crucial to understand how personal value systems and worldviews influence decision-making.

The challenge of diverse perspectives

In the quest for the right CEO, board members may emphasise different attributes consciously or unconsciously

  • The experience of the past versus the capability to cope with the future
  • The importance of certain values
  • The desired temperament
  • The focus on short-term or long-term priorities
  • The significance of what those long-term priorities should be about
  • The importance of a candidate’s future potential for succession planning
  • What exactly are and are not the essential challenges of the organisation
  • Does the candidate align with me versus with the challenges of this role

Operational leaders might focus on efficiency and the ability to streamline processes. Visionary thinkers could seek a charismatic leader with a transformative vision for the future.

While these perspectives are valid and contribute to a well-rounded view, they risk creating a fragmented approach to selection. Without a cohesive understanding of what the organisation truly needs, boards can become entangled in disagreements that hinder progress.

Defining the stage of value creation

At VALPEO, we believe that understanding the current and required future stage of value creation at which the organisation operates or wants to operate is essential to defining the qualities a CEO should bring. Each stage of value creation presents distinct challenges and opportunities that influence the complexity orientation and value system required in a leader.

  1. Assess current value creation: Organisations must first evaluate where they stand in their value creation journey. Are they focused on optimising existing operations, driving innovation, or are they confronted with a required transformation of their businessmodel or even the industry? This understanding helps clarify the type of leadership needed.
  2. Align expectations with value creation needs: By identifying the specific challenges and goals associated with these stages of value creation, boards can align their expectations for the CEO. This ensures that the selected leader possesses the right blend of skills and capabilities to navigate the complexities inherent in that stage.

Mental processing capability: the underlying factor

The differences in how board members perceive the ideal CEO often stem from their own mental processing capabilities, or complexity orientation and value system. This term encompasses how individuals interpret information, solve problems, and make decisions based on who they are and the world they like to create or be part of. Here’s how this can affect CEO selection:

  1. Cognitive biases: Board members may unconsciously favour candidates who mirror their own thinking styles or backgrounds, leading to a lack of diversity in consideration.
  2. Varied expectations: Individuals with a lower complexity orientation may prioritise straightforward, tactical skills, while those with higher complexity might seek a leader capable of navigating ambiguity and strategic thinking. This divergence can create misalignment within the board. Their personal value system driven by openness to change, self enhancement, self transcendence or conservation can influence the values they seek in others, independent of what is required to be succesful.
  3. Communication gaps: Different cognitive styles and value preferences can lead to communication challenges. Board members may struggle to articulate their viewpoints or misunderstand each other’s priorities, goals and beliefs, further complicating the selection process.

Bridging the gap: strategies for effective decision-making

To ensure a more effective CEO selection process, boards should adopt strategies that recognise and address these complexities:

1. Facilitate open dialogue

Encourage an environment where all perspectives can be shared and discussed openly. Creating structured forums for dialogue can help board members articulate their views while fostering mutual understanding.

2. Use data-driven assessments

Implement assessment tools that objectively evaluate candidates cognitive and emotional stage of development to help define in what way his or her personal dynamics will fit with the requirements of the role and the culture of the organisation. This can help mitigate biases and ensure a focus on what truly matters for the company’s future.

3. Engage external expertise

Bringing in external consultants or facilitators can provide a neutral perspective on the selection process. They can guide discussions, challenge assumptions, and ensure that the conversation remains focused on the organisation’s needs.

4. Align on organisational needs

Before beginning the search, the board should engage in a collective assessment of the organisation’s current challenges and future aspirations. Establishing a clear and shared understanding of the ideal CEO in relation to the organisation’s stage of value creation will help streamline discussions and decision-making.

Final thought: consider your own perspective

As you navigate this selection process, consider this: If you were the candidate, would you want to engage in an assignment where the level of value creation is unclear? Would you risk being underused or stretched beyond your capabilities? Would you like to work in a culture that does not fit your value system? By understanding this and aligning expectations accordingly, boards can not only select the right CEO but also create an environment where leaders feel empowered to thrive.

Conclusion: embracing complexity for effective leadership selection

The process of selecting a CEO is inherently complex, influenced by the diverse perspectives of board members shaped by their worldview and value system. By acknowledging and addressing these differences, boards can enhance their decision-making processes, ensuring that they select a leader who not only meets immediate needs but also aligns with the organisation’s long-term vision.

At VALPEO, we emphasise the importance of understanding the current and future stage of value creation as a foundational step in this process. As organisations seek to navigate uncertainty and drive growth, recognising these stages and individual perspectives will be key to selecting the right CEO to lead the way.

Richard Vincent

About Richard Vincent

Richard Vincent is Partner & Head of Global Expansion at VALPEO. He helps executives managing complexity & change, in their home country and internationally, with the objective to build future-proof and value-creating organizations to achieve the company ambitions and results.​

About Filip De Cuyper

Filip De Cuyper is a Partner at VALPEO and a trusted HR advisor. Over the course of 25 plus year’s career, Filip has helped organisations grow, transform and excel by aligning people, innovation, and performance.