CEO Success Factors

We've been re-evaluating a bunch of CEO hires and looking at patterns. Who made it, and who did "just OK?" Early results are surprising. Bottom line? The up and comer, first timers seem to be performing right in line and possibly better than the "veterans." For example, I'll take Larry Page over Carol Bartz any day of the week. I'd even take Zuckerberg over a turnaround, slash and burn "operator" in the digital media world, any day of the week.

A big hit for us was Frank Slootman at Data Domain ($2B exit). He was a first time CEO and the two things he has really going for him: incredibly smart and incredibly competitive. Isilon exited at $2B recently, same story. Smart, intense guy running it, wouldn't strike you as a "usual suspect" CEO type. CEO of LoopNet, Rich Boyle, was promoted from head of engineering and sold LoopNet recently for $850M or so. The list goes on and on.

Boards need to think long and hard about risk. How do you define risk? At what point do you say "I'm betting the company on this person?" As opposed to, "how do we avoid a shareholder lawsuit if we get it wrong?" The risk aversion in public company Boards is shocking, disappointing and yet another handicap to US company competitiveness over the long term. That culture of risk aversion needs to end, yesterday.

As for startups, the "usual suspects" orientation really needs to change in my view. When will a return to inspired hiring occur? There are only so many usual suspects running around, many with very questionable "leg drive" after coming off a nice exit, and it's time to re-think the qualities that make up excellent CEOs. Every situation is unique and custom. But the basic thinking should be "who" and not just "what" are we looking for?