CEO Succession: The Role of Executive Search in Ensuring the Right Choice
Choosing a new CEO is a decisive moment for companies. It has a positive or negative impact on the organizational culture, employee productivity, reputation and trust in the market and society. Hiring this senior leadership is not just a matter of filling a key position, but of defining the company’s direction for the coming years, highlights Rui Guedes de Quinhones, a highly prestigious international headhunter and leader of EMA Partners Portugal. In an interview with Dnews, he talks about the crucial role of executive search in avoiding risks in what is one of the most strategic processes for a company.
Rui Guedes de Quinhones
is the CEO of EMA Partners Portugal.
There are many particularities that are part of the process of hiring a new CEO, such as the company’s current situation and vision for the future, but one dilemma is almost unanimous among companies: choosing between internal talent or looking outside the company? What are the positive and negative aspects of each of them – internal or external talent?
In fact, this is a recurring issue in companies all over the world, not just in Portugal or Brazil. The choice between promoting an internal talent or bringing in an external profile depends on the strategic context of the organization.
Promoting an internal talent has the advantage of ensuring cultural and operational continuity. This executive is well-versed in the structure, processes and culture of the company, which allows him/her to be more agile in decision-making and implementing changes. In addition, he/she reinforces the positive message to the team, encouraging internal development and talent retention. However, there may be a risk of a limited vision, as this is a professional who is too immersed in the current culture of the company and less able to lead disruptive transformations.
On the other hand, recruiting externally allows you to bring in new perspectives and experiences, accelerating changes and implementing a fresh vision. An external CEO can question the status quo and lead a deeper transformation. However, their integration may be more challenging and the risk of misalignment with the organizational culture is real.
In short, there is no single answer: it depends on the strategy, the organization’s current situation and the maturity of internal talent.
Regardless of whether an internal or external executive is chosen, what skills, in addition to traditional soft and hard skills, are essential for the CEO to maintain the company’s growth, sustainability and longevity?
Today, the role of CEO goes beyond traditional technical or interpersonal skills. I believe there are three critical areas:
Ability to adapt to change. It is essential for the CEO to know how to anticipate trends, respond to crises and adapt to new economic, technological and social contexts.
Systemic awareness. A leader must have an integrated vision of the business, the value chain and the social and environmental impacts of their decisions, promoting sustainability and corporate responsibility.
Inspiring leadership. More than managing, the CEO needs to mobilize teams, align purposes and generate trust in all stakeholders, fostering a resilient organizational culture oriented towards long-term results.
Hiring the wrong executive comes at a high price, especially a CEO. In this sense, how can executive search consultancies avoid this loss and what are the benefits generated for the company?
Hiring a CEO is not just about filling a key position, but also about defining the direction of the company for the coming years. The impact of a wrong choice goes far beyond the direct financial cost; it affects the organizational culture, investor confidence, business performance and, in many cases, the company’s very sustainability in the market.
The true value of an executive search consultancy lies in its ability to act as a strategic partner. More than simply identifying candidates, an experienced consultancy helps to bring clarity to what is most important in a leadership change. Our role begins with the alignment between the desired profile (an aspect that is often “tuned” by us, reconstructing appropriate role-specs) and the specific challenges of the company: digital transformation, international expansion, restructuring or sustainable organic growth.
The executive search methodology goes far beyond the analysis of technical skills or the candidate’s previous experience. We carry out an in-depth analysis of the culture, the dynamics of the executive team and the strategic objectives of the organization, ensuring complete alignment between the CEO’s profile and the specific context of the company.
Additionally, executive search allows for a broader and more impartial market mapping, ensuring access to high-performance talent that is often not available or visible through traditional channels. The confidentiality of the process also protects the organization during sensitive phases of change.
The ultimate benefit for the company is the reduction of strategic risk: we exponentially increase the probability of finding the right leader, who not only has the necessary skills, but also has the vision, resilience and ability to influence and mobilize stakeholders in favor of the organization’s long-term goals.
