These high-level positions don't require the know-how to set up an e-commerce business anymore. A comfort level with technology is still extremely important for any CEO, but having specific Internet experience is not quite as valuable as someone who can look at the existing technology and figure out how to improve what's already there. Neff says that companies are asking for people who have demonstrated that they know how to use technology in the service of business. Translation: Know your stuff, and know how to wring more dollars in savings out of it.
Last year, says Neff, hype was the rule rather than the exception. But with employee morale down, a dismal stock market, and tough decisions in store, one of the key qualities companies are looking for in CEO candidates is the ability to speak clearly and honestly. "There's much more of a premium on being able to communicate," he says. "The worst mistake for CEOs is to miss earnings guidance. And they need to be able to deal effectively with the board. There should be no surprises."
Even more critical is being able to talk to employees, who may be insecure and demoralized. "Particularly if you're asking people to go through a period of sacrifice," says Neff, "employees need to know why and they need to know what the expected outcome will be. You can't ignore the internal constituency when you're managing in a period of transition."
These days, Neff is spending a lot of time making sure his CEO candidates have proved that they can keep a team together. In these times, it's downright critical. When checking references, he makes sure that he talks to people who have worked for the candidates and asks them about the candidates' ability to attract good people and to motivate, challenge -- and ultimately -- retain those good people. "Was the candidate the first to congratulate you when you did something, or was his door always shut?" asks Neff. "Chief executives have to keep employees together, to put an arm around them. Employees have to understand what's mission-critical, and they need to be motivated and reassured."
Jennifer Reingold (jreingold@fastcompany.com) is a Fast Company senior writer. Contact Tom Neff by email (tneff@spencerstuart.com).
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