It is not an easy task to pick the right CEO to lead the firm for the next lap. A bad selection can be devastating for the performance of the firm. On the other hand, the right pick can lead to extraordinary financial results. Picking the right CEO is less daunting when you understand what specific capabilities are needed for the firm’s next lap. Narrow in on those key capabilities, skills or personality traits that the new leader should ideally possess in order for he or she to thrive in the role, pivoting the company to where it needs to head. Keep an open mind about where candidates may come from; they may be internal or external candidates. Sometimes the right candidate may appear a few levels below the CEO. In any case, allow for shortcomings in the candidate, ensuring that gaps can be closed through coaching or covered by other executives.
Source: Havard Business Review