Why Do CEOs Get Fired?

We’re all familiar the mantra: hire for hard skills but fire for soft skills.  This is true for CEOs too.

It’s a popular belief that CEOs get fired (or forced to resign or retire under pressure) because of poor financial performance. But that’s wrong, according to a four-year study by LeadershipIQ.com who interviewed 1,087 board members from 286 public, private, business and healthcare organizations that fired, or otherwise forced out, their chief executive. Below are the five reasons the CEOs were fired and the percentage of board members providing the reason:

  • Mismanaging Change – 31%
  • Ignoring Customers – 28%
  • Tolerating Low Performers – 27%
  • Denying Reality – 23%
  • Too Much Talk, Not Enough Action – 22%

Board members or other hiring managers can minimize mis-hires by focusing on screening for soft or healthy skills.  While it is easier to screen for hard skills, behavior based interview questions and workplace behavioral psychological assessments can provide insights regarding candidates’ likelihood of struggling with healthy skills.

Empower your selection team with the tools to screen for healthy skills and you’ll make successful hires.

Explore posts in the same categories: Leadership, Selection

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