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.
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.
To The Candidates I Will Offend Next Week
December 3, 2009
As a condition of being released from custody, the brilliant yet troubled title character in the movie Good Will Hunting must meet regularly with a counselor. Determined to sabotage the process he torments and is dismissed by a series of psychologists until he is sent to ‘Sean' played by Robin Williams.
The Talent Game in Venture-Backed Firms
November 13, 2009
Last week I met the CEO of a recently funded tech firm (yes, it still happens) who described at length his plans to build his business. As he spoke of his young executive team, its successes to date, and his plans to lever the new funding round to conquer the world, he exuded the sense of invincibility that comes with youth and the validation of funding. Afterwards, as I reflected on our meeting, part of me hoped that underneath the bravado was an individual who was as least a little frightened, for if he bothered to peruse his new venture partners' playbook, he would know that he is anything but invincible.
What it takes to Climb to the Top – The Case for Grit
October 14, 2009
If intelligence is the best predictor of achievement what accounts for the wide range of achievement among individuals of equal IQ? Professor Angela Duckworth studies this question for a living and believes she has the answer
Why Recruiting from the Best Companies is Perilous
September 26, 2009
If you long to be taken to Shangri-la, that fictional, mystical, utopian oasis of harmony and love, what kind of person do you hire to help you get there? Do you recruit a lifelong resident, intimate with the ways of the land, or someone trained in navigating the treacherous jungles to the western end of the Kunlun Mountains where it is said to be located?
Creativity: Hardwired or A Skill We Can All Develop?
September 17, 2009
This week the Globe and Mail published an article titled "How to Shine Again After A Year of Gloom" in which employees as well as candidates looking for jobs are urged to emphasize their creativity as a means of differentiating themselves in the marketplace. This appealed to me as great advice, provided you are one of the few people who actually are creative. For everyone else it is a waste of time.
Why Best Practices Can Be So Dangerous
September 10, 2009
I recently dusted off Jim Collins' book Good to Great. For those who have forgotten, the book compiles a list of companies that have achieved ‘greatness' over a period of 15 years and then analyzes them in order to "discover the essential and distinguishing factors at work". The resulting best practices of these best companies has been a bestseller since 2001.
This Week's Leadership Changes at OLG and NHLPA
September 3, 2009
Two high profile firings took place this week. Both shed light on how boards of directors and the big-named international headhunters who advise them make questionable decisions.
The first involved the CEO of Ontario Lottery and Gaming Corporation who was dismissed along with the majority of the firm's board of directors. Published reports suggested that topping the list of Kelly McDougald's purported transgressions was her failure to deliver wholesale culture change at the government run monopoly. If this was in fact her primary mandate, it is reasonable to look at her credentials going into the job.
Hiring Leaders – Nortel’s Board of Directors
June 9, 2009