The time has come for organizations to reconsider how they select senior leaders. Three trends warn that scrutiny of the process is overdue. The job is getting tougher. Information technology, global competition, and a knowledge-based economy challenge organizations to become more flexible, streamlined, and innovative to keep their competitive edge. As the bar for satisfactory organizational performance moves up, so do the requirements for leadership talent.
Many executives fail.
Shareholders, spoiled by the long-running bull market, are impatient when earnings fail to boost stock prices. And when shareholders bark, boards of directors bite. CEOs are resigning, retiring, or getting fired at a record pace. Each failure typically costs an organization millions of dollars. Leaders are increasingly scarce.