C-Suite Interview Best Practices Part Three: Assessing Track Record

In parts one and two of this series, we discussed best practices when hiring for the C-suite, including interview panel composition, process optimization for each functional area, and enhancing the candidate experience. In part three, we will address how to reference and what key questions to ask when assessing a candidate’s past performance, especially those lacking transaction or investor-backed experience.  

Assessing Transaction-less Transitions:  

Evaluating executive talent today requires a deeper level of critical assessment than in recent history. Compared to the surge in deal activity and the valuation spike between 2021 and 2023, today’s market is more muted. As a result, many executives who joined companies with the expectation of a transaction-driven wealth event are finding themselves in an elongating hold period. While these leaders are increasingly open to making a transition, they do not possess the traditional markers of success like an IPO or successful exit.  

It is more critical than ever to differentiate market dynamics from a candidate’s capabilities. To effectively do so, consider the following: 

• Diligence the business, not just the executive. When considering a candidate whose most recent business fell short of expectations, it is important to contextualize their performance and take additional steps to evaluate the overall situation. Hiring teams should consider asking: How did the business’s competitors perform? What were some of the baseline assumptions within the value creation plan? What is the company’s reputation in the market? What major headwinds were encountered and how did they impact company performance? While there is no question that business performance is the ultimate accountability metric for the Board and its Operators, strong leaders do exist even within underperforming businesses.   

• Assess the leader’s ability to adapt and lead through change. Did the executive effectively pivot the strategy? How do they communicate vision and create alignment? Did they make decisions based upon a data-driven approach? Were they able to keep the team aligned and engaged through challenging times? Did they create a transparent leadership culture? Did they make swift and rational decisions regarding talent? Were they able to create followership as a leader? Knowing the answers to these questions is important for evaluating whether a candidate is a competent and capable leader and a potential fit.  

Ultimately, referencing and assessing transaction-less transitions is about distinguishing between executives who were simply present during flat periods and those who actively created enterprise value under constrained conditions. In today’s market, where exits are scarce and multiples are leaner, battle-tested leaders, who were able to maintain or add value in challenging conditions will be well-equipped to drive the desired value creation outcomes in the cycle ahead. 

Readiness to Operate Within an Investor-Backed Opportunity  

Not all Operators are cut out to thrive in sponsor-backed situations. Gauging a candidate’s readiness to succeed in an investor-backed business is critical for both the individual and the hiring team. Success in these environments requires a unique blend of intellect, agility, decisiveness, and resourcefulness, which is often a steep learning curve for someone coming from a public or private company. Hiring teams should closely probe for:   

• Examples successfully operating within fast-cadence, performance-oriented situations. The pace of play within an investor-backed business is simply faster. Value creation targets need to be met swiftly as delays create risk and raise tensions among stakeholders. Digging into a candidate’s past experiences delivering and remaining agile while operating in high-visibility, high-pressure situations is core to referencing. If references tell you the candidate performs best when under the spotlight, you may have a winner.  

• Over-index on the decision-making process and communication. Does the candidate make data-driven decisions? Executives who embrace metrics and lean on data to inform strategy can often be a strong fit in an investor-backed business. Additionally, investigate how they work and communicate with multiple stakeholders – do they know when to push back vs. when to align?  

• Repeatedly getting the job done with limited resources. Constrained resources are a constant reality for investor-backed businesses. Investigate team sizes and associated budgets with which the candidate has done their job. Ask references: how did you see the candidate lead? What actions did they take? Did their leadership style change? The answers may provide you with valuable insight into projecting future performance within your environment.  

As today’s market continues to evolve, assessing a C-suite candidate’s capabilities and fit requires more than and cursory scan of their track record. It demands a deeper understanding of the context in which they performed. By asking the right questions and looking beyond the surface, you can find the right leader to drive meaningful outcomes. The goal is to build a comprehensive picture of fit beyond the resume.