| The candidate had a stellar track record at
one of the industry's largest and most highly respected companies. Impressed with his
accomplishments, the Board of Directors of a promising start-up jumped at the chance to
hire him as CEO. They believed his pedigree and high profile would give the company
instant credibility, and his extensive contacts would open doors with potential clients
and partners.
But the new CEO didn't work out.
Removed from the life support system of a big company, he
struggled to get things done. He added unnecessary bureaucracy, spent too much money, and
didn't want to get his hands dirty. He was gone in a year, and left the investors
scrambling to get the company back on track.
Stories like this happen all the time. Like plants that
thrive in one ecosystem but die when transplanted to a new environment, many star players
at big companies wilt in a small company where they have finite resources and little or no
supporting infrastructure.
Candidates who have successful start-up experience are an
excellent and obvious alternative to candidates without it. But it would be a mistake for
start-ups to avoid candidates from big companies. As evidenced by the executive rosters of
countless start-ups, many executives from big companies succeed in emerging companies.
Start-ups that won't consider hiring them are missing out on a large and valuable pool of
talent.
5 Positive Traits to Look for in Big Company Executives
Passion
Look for candidates who are frustrated by bureaucracy and
the glacial pace of change at big companies. They have high energy and want to work in an
innovative environment where they can get something done and create something new.
Undeterred by Possibility of Failure
Good start-up executive candidates are comfortable with
risk. The best thrive on it. No one goes into a start-up planning to fail, but good
candidates do not dwell on the possibility. They know that if things don't work out they
can pick themselves up and move on.
Team Players
The best candidates are team players who don't need perks
or lots of subordinates to feel validated. They focus on results and work well with their
peers, team leaders and employees.
Focus on Equity
No one joins a start-up for cash compensation. Good
candidates focus on the upside opportunity and, within reason, will trade cash for equity.
Understands the Game
The best start up executive candidates ask savvy questions
about the business plan, team members, investors, board members, and financing. They
understand the goal is a profitable exit, and can put themselves in the investors' shoes.
In addition to the positive traits above, you also want
look out for red flags.
4 Ways to Tell If a Big Company Executive is Not for Your
Start Up
Risk Aversion
Beware of candidates who want a compensation deal that
eliminates risk. They may ask for severance terms or bonus guarantees that are excessive
for a start-up company. They do not have the stomach for risk that is required to succeed
at a start-up.
Naïve
Eliminate candidates who demonstrate poor understanding of
priorities at a start-up. They might show excessive concern for administrative support or
working hours, or pose questions that illustrate ignorance of what start-ups are really
like.
Status Seekers
Stay away from candidates who want all the perks they
enjoyed at big companies. Desire for high-end perks shows a lack of appreciation for the
financial constraints of emerging companies. Granting them their wishes undermines your
team culture.
Bureaucrats
Many big companies and large organizations are so highly
matrixed that it is hard to figure out who is responsible for what. Weed out candidates
who can't point to concrete achievements for which they were directly responsible.
In summary, be cautious and methodical when evaluating
candidates who have never worked at a start-up. If you proceed carefully, you can identify
some great talent, and avoid costly hiring mistakes. |
