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To learn which skills would translate to future positions, we chose a four-step process to analyze and validate our findings: 1. identify the attributes and behaviors that comprise the language of C-suite job descriptions; 2. summarize the relevant skills and traits of top executives; 3. use that information to develop a set of objective measures to evaluate job descriptions; and 4. test the measures by comparing the descriptions of real executives to the expectations in their job descriptions.
The research consists of an analysis of the job descriptions of 5,000 executives and senior managers from the United States, United Kingdom, and Australia that SOS Group in collaboration with global executive search firm Russell Reynolds developed and then analyzed from 2000 to 2017. The dataset consisted of job descriptions for every job description at every level of the company from every single executive or senior manager position at every single organization. The data was sufficient to study expectations not just for the CEO but also for four other key leaders in the C-suite: the chief financial officer, the chief information officer, the head of human resources, and the chief marketing officer. To our knowledge, researchers had never before analyzed such a comprehensive collection of senior-executive job descriptions. We were the first to do so, and we can replicate this study with anyone interested in this kind of data.
Preparing high-quality future leaders is a key problem for the C-suite. With the rise of disruptive technologies, the emergence of new competitors, increased demands for transparency, and rapid global change, managers are expected to address and solve increasingly complex problems. That means developing leaders who have the technical expertise to work in a tech-enabled world, the people skills to build productive and collaborative relationships, and the leadership skills to lead teams and implement change.
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For this reason, the authors conducted a deep dive into the hiring process to understand how firms are assessing the candidate these skills, particularly as it relates to their ability to function in the C-suite. Over the course of a year, they reviewed more than 5,000 job postings for the C-suite. They further analyzed role-based knowledge and experience required from these jobs in light of current trends and conditions in the jobs market. They also explored what they had seen in recent years from Executive Development Programs designed to prepare candidates for the C-suite.
From a data perspective, we identified the leading skills that firms are hiring for, by job title, and for specific in-the-C-suite roles. We found that the need for a strong set of leaders who can contribute to the functions, activities, and reputation of the company in the public realm – and the need for these leaders to be trained, and positioned, for later promotion – have increased dramatically over the past 20 years.
From 2000 to 2017, the number of board level jobs requiring team skills, communications skills, and business acumen, were relatively low. In 2014, forbes magazine reported that 36% of senior jobs were in the C-suite and that teams were increasingly important. What we found was that the percentage of posts that required particular leadership skills increased over time, by job title, and in relation to the organizational context. We also saw that leaders in the C-suite tend to be business-savvy, with a good understanding of their company’s financial situation, its products and services, and its strategic priorities.
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Finally, we identified a subset of words, phrases, and concepts that represented the most significant differences between the chief executive officer (CEO) and other senior leaders in the database. This set of terms and phrases is the CEO Attributes (CEOA). The CEOA measures the traits that differentiate a top CEO from the rest of the company’s leaders. Our formula, which automatically calculates a CEOA rating from a position’s PDW, KPA, and CEOA scores, helps users quickly see and understand who on their staff is most likely to succeed in a C-suite role. For example, suppose you’ve posted a job for a top-flight COO in a Fortune 100 company. A company that just raised $10 million in a recent deal is normally expected to have named a CEO and a COO.
EPI Suite’s CEOA analysis identified a distinctive CEOA score for only one position — the COO. The COO held a PDW score that was nearly 30 points higher than the other C-suite roles. The CEOA identified a top CEO from the start. It also showed a team of four people in the executive suite:
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