The Case for “Strong #2’s” as CEO Candidates

When our clients lack internal bench strength and succession planning does not deliver, they retain executive search firms to recruit the organization’s next leader. Whether it’s a CEO, Executive Director or President role (hereafter referred to as CEO), organizations tend to be favorably disposed towards sitting CEO’s, current #1’s. While this may be a safe and traditional strategy for attracting and recruiting their next leader, we advise and firmly believe that our clients are best served by also engaging and giving serious consideration to “strong #2’s.”

A “strong #2” — whether a COO, CFO or otherwise dynamic direct report to a #1 — can potentially be your next great leader. #2’s who truly aspire to be a CEO, and who possess the grit, determination and drive as well as a demonstrated track record of leadership and positive business outcomes should also be on the radar screen. Oftentimes, these hidden gems find themselves isolated or stuck in organizations with pseudo-succession plans, saddled behind long-tenured leaders. Nevertheless, #2’s who truly have the chops to be CEOs won’t rest and cannot truly be at peace until they get their first shot to achieve their highest career goal and aspiration (HCGA).

Let’s face it, no one was born a CEO. Every experienced CEO had to assume the post for the first-time at one point. They served with distinction in positions of increasing responsibility, delivered consistent operating results, demonstrated a high EQ and excelled in the leadership, management and relationship cultivation aspects of the role. These rising stars strategically managed their careers, developed strong followerships and influenced key decision-makers and power brokers on their way up the ladder.

Not every #2 is meant to be a #1

Before we go any further, let’s be clear: not every #2 is meant to be a #1. As you assess, evaluate and informally reference potential candidates, Boards and their search partners must ensure that these prospects have the requisite aptitude and attitude, passion for lifetime learning and personal growth and a healthy dose of purpose and conviction.

These prospects cannot be living or pursuing somebody else's dream or projected goal for them; it must be something that they viscerally want and truly believe they can do. Oftentimes, #2’s feel external pressure or expectations to become a #1, when, in fact, it may not be intrinsically in them to assume a CEO post. That's not the candidate profile we want our clients to hire. We must catch the right individual at the right time in their life and career, who is ready, willing and able to meet the challenges ahead.

A credible #2 must have superior business acumen, high emotional intelligence, and superior communication (both oral and written), as well as presentation, interpersonal and relationship management skills and great instincts. They must be creative and innovative, strategic and visionary and have excellent negotiation, influencing and persuasiveness capabilities.

Finally, an ideal #2 can make tough, sometimes unpopular decisions, is poised in a time of crisis, has an acute DEI and Belonging lens and is proud to serve as the “jealous guardian” of a positive organizational culture. Whether they currently sit in CFO, COO, General Counsel or other C-Suite roles, in addition to the qualities and characteristics cited above, these particular #2’s also have a charisma and magnetism that is compelling.

As a search firm, we look very seriously at those individuals who have runway and upside, who are determined to reach their HCGA as an executive leader. Often, all it takes is that first opportunity, and they're off and running. A #2 can be a stronger choice than a pre-existing or “recycled CEO,” one who is closer to retirement or who does not bring the same level of energy, vision and creativity to tackle the organizational challenges that await. Ultimately, you don't want a CEO who is simply “marking time;” rather, you want a CEO with a fresh perspective, clear vision and an integrity beyond reproach.

All leaders have gaps

Leaders are not expected to have it all, but they must have a preponderance of it all and must be able to lead it all; any gaps or blindspots they have should be ably and mightily filled by direct reports or related future hires. Go into your hire with eyes wide open. There are no perfect leaders. In fact, Boards must support new leaders by ensuring that they have the resources (both talent and executive coaching) and carte blanche to fill gaps and minimize the impact of the leader’s blindspots.

Remember, the CEO role is not for everyone. Approximately less than three out of ten leaders are truly equipped to serve in a #1 capacity, irrespective of their aspirations. However, many #2’s wait in the wings, hungry for the opportunity to shine. Your goal is to find the next leader who can demonstrate that they have the knowledge, skills, abilities and track record to be an exceptional leader. Whether you serve on the board of a public company, non-profit organization or a fast-paced, middle market growth company, expanding your search to include strong #2’s and not just veteran #1’s, allows search firms to cast a wider net. This opens up a broader and deeper candidate pool, one that can deliver the growth, strategy, change management and results you desire.