Executive Mis-hires: Avoid the High Cost

In the past 20+ years I've spent helping healthcare organizations build high-performing leadership teams, my firm has been brought in to replace executive mishires on countless occasions. The cost of such hiring errors has been well documented: The Cost of Executive Mishires.

In my experience, mishires fall into the following categories:

Pedigree Hires: The executive had “A list” organizations on their résumé (often key competitors) and/or eye-catching academic credentials. Through this, much was assumed but, not vetted, about their actual performance track record or fit. These hires are also tempting as they’re good (short term) public relations wins for the organization. Unfortunately, the press release announcing the hire is often the pinnacle of the executive’s tenure.

Aspirational Culture Hires: The candidate was vetted & matched to the culture the organization aspires to, not the actual way the organization operates. If an organization is seriously committed to cultural transformation, these hires can be a good thing. But, too often, aspirational cultures remain just that – aspirations.

Role Misrepresentation: Often not intentional but, incredibly common. An executive is hired to deliver objectives A, B, and C but, is not empowered with the levers necessary to be successful. This can be due to budgetary limitations, silos/bureaucracy, threatened vested interests, unrealistic expectations, cultural risk-aversion, or any combination of these factors.

Consensus Hires: The anecdotal & empirical data is overwhelming – when every member of the leadership team has to unanimously agree on the hire, the quality of the selected candidate is sacrificed. Yes, input from all key stakeholders is critical but, ultimately the hiring manager (often the CEO) has to have the ultimate say & accountability for the hire. Only the hiring manager has a granular understanding of the position’s deliverables & strategic objectives. Consensus is not inherently bad but, it often results in hiring the least objectionable candidate.

Personality Hires: Yes, we’re all human and we gravitate toward charismatic & charming individuals. But, in our experience, the most universally well-liked healthcare executives are not always the most effective when it comes to performance. Obviously, we want leaders who are inspiring and collegial but, the other experiential/technical and soft skills required can’t be overlooked

Tenure Promotions: Internal candidates should always receive priority consideration for leadership roles – it’s good for morale and organizational continuity. But, tenure cannot take precedence over performance and leadership soft skills. A great Director doesn’t always make a great VP. A great VP doesn’t always make a great CXO.

If your organization has suffered from any of the above missteps, I invite you to schedule a complimentary, strategy call with me in which I will outline the 4 Best Practices to Avoid Healthcare Executive MisHires guide that we’ve developed to help our clients optimize their executive talent acquisition & management process.

Thank you, as always, for reading. I welcome your feedback.

© Steve McGovern and Executive Search Insights, 2024. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Steve McGovern and Executive Search Insights with appropriate and specific direction to the original content.