Everyone has a theory on the Nortel’s descent from first to worst. Many start and end with the murderer’s row of CEOs at its helm.
I cannot even offer an opinion on the degree to which Nortel’s demise was a function of any one of a hundred different factors. But to the degree that the last three or four CEOs played a role, the board of directors has to take a shameful bow.
It is remarkable how many boards of directors lack visibility into the companies they govern. And when these firms struggle these same boards have no real insight into the issues let alone how to address them. Such inconvenient truths invariably push boards to seek solutions that are the safest and most defensible. Thus, when appointing a new CEO, they look for unassailable ‘name’ players from within their industry or from a company known for breeding great leaders. As a book I recently read stated, ‘there is a substantial incentive for boards to select the candidate with the highest reputation regardless of the match between the candidate’s abilities and the company’s needs because of the uncertainty of the outcome and the limited ability to assess fit’. By picking a ‘name’ boards bullet-proof themselves from negative repercussions should the candidate fail.
Leadership is contextual and I do not really know whether Mike Zafirowski had any real experience in the kind of turnaround situation he faced when he joined Nortel. But I do know that he worked for Motorola and GE, and as a result was a safe, unassailable choice for Nortel’s board of directors. Today, as his report card on righting the good ship Nortel reads ‘bankrupt’, he is being measured against a number of change management attributes which almost assuredly were ignored when he was hired.
The man who selected Mike Zafirowski for the CEO role is Nortel chairman, Harry J. Pearce. And while one would think that guiding Nortel in its journey to oblivion would be the defining stain on his career, it may not. You see Harry J. Pearce also served on General Motors’ Board of Directors for 8 years including five as its Vice-Chairman.
One Reason Interviewing Candidates is So Difficult
July 13, 2010
I was browsing in my local bookstore on the weekend when I came upon a small book titled ‘Toughest Interview Questions'. Always interested in this subject I quickly leafed through it and put it in the pile to buy.
Strategies for those wanting to make a career or sector change
June 23, 2010
Many transitional executives contemplate career changes. It may be a career auto or general manufacturing sector executive questioning its future, or a large-company type who covets the chance to work in a smaller organization. Often, it is simply individuals longing to shed unfulfilling careers for exotic destinations as yet unknown.
Executives in Transition- Why a rifle beats a shotgun in nabbing that perfect job
June 21, 2010
As a headhunter I am an obligatory stop on the networking circuit of many executive job seekers. I hold the promise of a barometer on the employment market, contacts, ideas, and even suitable ongoing searches. I am always happy to participate in courtesy interviews as I neither envy the job seekers' circumstances nor take lightly their courage in reaching out to me.
The Perils of the Successful Matchmaker
June 14, 2010
What is a successful matchmaker?
Last week, the Wall Street Journal published an interview with Patti Stanger who runs The Millionaire's Club, a Los Angeles-based "elite" matchmaking service and reality television program.
Interviewing: The Quest for Patterns and Themes
May 14, 2010
Last week, two seemingly unrelated articles caught my attention. The first was a magazine obituary on C.K. Prahalad, the management thinker best known for his work on core competencies. The article spoke extensively of his ‘big ideas' and noted his habit of traveling the world "prying useful information out of everyone he met…always looking for connections and patterns, hoping to predict change".
Checkers vs. Chess: Why Candidates Play The Wrong Interview Game…and Pay the Price !
May 4, 2010
I often join my clients when they conduct candidate interviews. I moderate, participate, listen and learn. They are fascinating glimpses into how candidates and companies alike play the complex game of talent acquisition.
The superhero hiring game and why everyone loses
April 5, 2010
When it comes to recruiting leaders, companies continue to search for those Steve Jobs-like characters that can single-handedly turn around a company's fortunes, blaze paths of innovation and market their wares like no other before them.
Why candidates should expand and prep their references
February 3, 2010
As headhunters scramble to match candidates with their shapeshifting clients, process and painstaking due diligence rule the day. To some candidates such rigor may feel intrusive or simply unnecessary. It shouldn't. In fact, rigor should be embraced and used to all candidates advantage. Consider the use of references as an illustration.
The Unwanted CEO Job …and the one individual who thought otherwise
January 8, 2010
Several recent articles have lauded the success of Ottawa-based Bridgewater Systems. With skyrocketing revenues, a growing market, and money in the bank, the firm's prospects have never been better and the street appears to love the story. It was a much more difficult story to sell in 2003, with one notable exception.
Hiring Executive Talent: The Sheepish Canadian Startup
December 26, 2009
Much is written about the state of the Canadian tech startup sector and why it lags the US, Israel and other countries in producing a richer community of world-class companies.
While I am not qualified to comment on many of the contributing factors I am witness to how Canadian startups hire and lever talent at key points in their growth. I would argue that for many of these firms the bar excellence is set so cautiously low that to expect anything but mediocrity is laughable. Let me provide a recent example.
Hiring Leaders – Nortel’s Board of Directors
June 9, 2009