As the most senior and influential leader in an organisation, the promotion to CEO is considered a career pinnacle for many executives. While there is no set path to the top job, the journey typically combines a formal education with:
- Gaining experience across diverse and progressively senior roles
- Refining the necessary technical and leadership skills
- Building and maintaining strong professional networks
For CEO appointments, the Board will often consider both internal and external executive candidates. Therefore, despite the commitment and preparation that goes into preparing for CEO, there are no guarantees of success when you put yourself forward for this role.
“You must factor in the real possibility of missing out on the CEO appointment, as it’s not uncommon for executives to be overlooked at their first or even subsequent attempts,” explains Geoff Curran, Partner at Gerard Daniels. “If you are unsuccessful, this setback needn’t define you, limit your growth or mark the end of your career aspirations and it certainly doesn’t preclude you from stepping up at a later stage. In fact, many previously unsuccessful candidates go on to enjoy highly successful CEO careers.”
“If you have been with the same organisation for some time your next step may need a rethink, but with the right approach there will be other external opportunities to progress,” says Geoff. “You just need the right mindset to move on and embrace what comes next.”
Lessons learned: Building on your bid for CEO
Once you move past the initial disappointment, missing out on promotion becomes an opportunity to learn and grow. Actively seeking feedback is an important part of this process, as it allows you to adapt and adjust your approach for future CEO roles – particularly where it relates to gaps in your skills and experience, your interview technique and other steps you can take towards being more CEO-ready.
“Decision making for senior appointments is rarely black and white, with a range of factors beyond technical competence at play,” says Geoff. “For example, you may miss out on being promoted to CEO if the Board decides to move in a new direction and requires a very different style of leadership to do so.”
“To learn and grow you must understand the broader context for this decision and be open to honest feedback on why you were unsuccessful,” says Geoff. “Honesty and transparency around the future leadership requirement in your organisation and the factors that shaped the CEO appointment, gives you the insight you need to move forward.”
Should I stay or should I go?
When you are unsuccessful in being promoted to CEO, you may be faced with the decision to stay or move on from your current role and organisation. It’s what you do next (not what you did last), that matters most.
“In any leadership role, job satisfaction is largely about doing what you enjoy, working to your strengths, contributing in a meaningful way and helping your organisation to grow and stay competitive,” says Geoff. “As such, deciding what to do next is often shaped by perceived career prospects within the organisation and by whether you have been able to deliver on what you set out to achieve.”
Continuing to perform and grow in your substantive role can set you up for future success, sending a message on your commitment to the organisation and delivering on its current organisational strategy. For others, this situation is a catalyst for change, whether it involves gaining experience in a different role or part of the organisation or choosing to resign and look for opportunities elsewhere.
“When your sights are set on CEO, this can be a difficult decision to make,” says Geoff. “If you continue on in your role, you bide your time knowing this opportunity doesn’t come along very often, while if you choose to move on there are no guarantees that the grass will be greener on the other side. The arrival of the new CEO could also create an environment that naturally shapes your decision.”
Seeking counsel from trusted individuals within your professional network can inform the process and help you to navigate your important decision.
Retaining unsuccessful candidates
The way in which the recruitment process is managed – before, during and after a CEO appointment – is critically important for organisations that want to retain key internal candidates. “An unsuccessful CEO candidate is likely to want some assurance, because on a very basic level people need to know that they are valued and that they have future prospects for growth,” says Geoff.
To retain talent, organisations must prioritise proper debriefing and provide quality feedback to internal candidates that miss out on the CEO role.
“If you really don’t want to lose someone that you pass over for promotion, you must facilitate honest and open discussion about what the future looks like for that individual, also developing a clear plan for ongoing development and career progression,” Geoff continues. “Engaging in these conversations is a shared responsibility as it impacts the support and opportunities the organisation provides and what it means for an individual’s future within the business.”
Building relationships to future-proof your career
Building and maintaining a strong professional network that includes current and former colleagues; mentors; and individuals across diverse industries, is one of the best ways to progress future CEO opportunities. Building a relationship with an executive search consultant will also help to extend your professional network and shape your career by connecting you with specialist advice and guidance on how best to present yourself for new opportunities.
“Regardless of how busy you get and how invested you are in your current role, it’s really important to develop relationships and have regular conversations with a trusted group of people that are privy to your future plans,” says Geoff. “Doing so allows these individuals to understand the direction you want to head in and to facilitate opportunities where they can.”
“Other good reasons for investing in your network include building industry knowledge, staying connected with what's happening outside your organisation and knowing what this means for you,” says Geoff. “Because to stay relevant, you must understand and be able to offer what the market needs.”
To grow your network, build your career or learn about new leadership opportunities, connect with Geoff or reach out to your local Gerard Daniels team.
