The difference between confidence and arrogance is often difficult to detect in CEOs during an interview process. This unfortunate reality plagues Boards since arrogance is, in my view, the single most dangerous trait for a private equity-backed CEO. Let’s consider all of the implications of an arrogant leader.
- Don’t welcome counsel and may not readily accept guidance from the Board
- Have difficulty evolving and improving making them less adaptable
- Exhibit artificially low levels of respect for the competition making them susceptible to market share losses
- Underestimate the difficulty of challenges
- Struggle with self-assessments and therefore self-improvement
- Become susceptible to corner cutting believing their own ability can make the difference
- Find it challenging to recruit A-players
- Don’t respond well to setbacks
- Hesitate to push accolades out to their teams
- Struggle mightily with leadership
Confidence (plus Wisdom) is a Must
In my expeirence, the winning recipe involves CEOs who possess exceptionally high levels of confidence, gorunded in wisdom and humility.
- Setting and achieving stretch goals
- A winning and competitive culture
- The ability to respond to setbacks
For the full power of confidence to be released it must be grounded in humility and empathy…and powered by wisdom.
Assessing the Difference
If you know the tells, arrogance can be identified during an interview process. Look for arrogant signals such as:
- A lack of true self esteem
- Discomfort when answering questions about mistakes and lessons learned
- Lower levels of empathy
- A personal career agenda rather than one focused on the greater good of the business and investors
- An inability to articulate a personal development plan for continuous learning
- A lack of unwavering ownership of all outcomes
Pay close attention whe referencing a CEO. Comments from the team that reported to your CEO candidate will provide valuable insight.
Pay close attention to your perception of each CEO candidate’s general levels of wisdom. Wisdom and arrogance are essentially mutually exclusive so ample wisdom is a very good thing…in more ways than one. A private eqiuty Board’s ability to assess wisdom is often instinctual so search commitee memebers must listen to their inner voice – it will usually steer Boards in the right direction, at least in terms of evaluating wisdom.
Boards should veiw arrogance as a fast-lane to a hiring mistake. Instead, Boards should prize supremely confident candidates while also assessing for humility, empathy and – most of all – wisdom.