Business Problems We Solve: Win The War For CEO Talent In A Cyber-Secure Organization

According to a new review by our friend, the business psychologist Derek Lusk, 50% of new CEOs fail. He explores why this happens, and summarizes his thesis as follows:

"What happens in the early months between a new CEO and the board drastically influences the long-term outcome. A board that is simply an evaluator of the CEO will plant seeds of failure early on. In contrast, a board that steps into the role of partner and coach can help transform the CEO's psychological turbulence into clarity and, by extension, leadership effectiveness.

In other words, CEO transitions don't succeed because of a single great leader. They succeed when the group of people at the top is an effective team. And no part of the team is more influential in shaping the CEO's transition than the board."

There are two pieces to this, and they are both important for new leaders who are transitioning to corporate governance.

First, the board creates the context within which the CEO learns the organization and its culture, its boundaries and options, its possibilities, and its values.

Second, teamwork at the top of the organization requires active attention and oversight. It is not about harmony and getting along. Our friend, the business psychologist Gordy Curphy, has a fantastic explanation for this phenomenon in one sentence: Are we a group or a team? He puts it this way:

"Feedback will get the attention of C-suite teams but by itself will not improve performance very much. Critical additional steps include actively working on areas of improvement and implementing accountability mechanisms to ensure team agreements stick."

Let's reflect on these findings. We'll also be so bold as to provide direction to speed things along.

From the perspective of an executive leader, boards are critical to creating the context for success. Executives need to know what the board knows and expects in terms of cybersecurity. The new executive must make this cybersecurity discussion part of the onboarding and development process. If no one talks about it, there thus lies an opportunity to fail because of cybersecurity overspending and misalignment with values and expectations. Then, the executive leader needs to create an executive team expectation that cybersecurity is now part of the team's regular discussions, not something that gets mentioned only by the audit committee when something bad happens or more money is needed.

From the perspective of an investor, you need to know how the prospect incorporates cybersecurity into its operations and value proposition. Do not accept fogging or hand-waving or technical mumbling or boilerplate marketing as an answer. If the leadership team cannot explain how the organization creates value and innovation within a cyber-secure environment, you are buying a ticking time bomb.

The board selected the new CEO instead of alternatives who were thought to have less potential. In the new cybersecurity environment, the board needs to set the CEO up for success and then the CEO needs to create a successful leadership team. Expect more from them by holding them accountable for cybersecurity.

Simple. Real. Effective. 

That's the cybersecurity advising we provide.

50% of new CEOs fail. Increase the odds of success by asking us how we will work with you to set the new leader on the right path for a cyber-secure organization.