My golden rules for hiring the A-team for your business - Sunday Times
Richard Harpin Sunday Times: Sunday December 03 2023
The world’s greatest teams have one thing in common: they are filled with exceptional individuals, the best at what they do, consistently outperforming to remain at the pinnacle of their chosen field. A recent survey from the management consultancy McKinsey found that high-performers are 400 per cent more productive than average ones, while high-performers in complex corporate decision-making roles — the 5 per cent who deliver 95 per cent of the value — are an incredible 800 per cent more productive.
Steve Jobs, Apple’s much-missed leader, understood what accelerates business growth: “Go after the cream of the cream. A small team of A-plus players can run circles round a giant team of B and C players.”
Finding and recruiting this A-team, especially chief executives, is vital if you want to stay one step ahead — particularly if your business has grown to such an extent that you need to supplement your current team with new inspiration.
HomeServe was a success because of the quality of leaders I hired to run the different countries and businesses. In my entire career, I’ve got about 80 per cent of the big recruitment decisions right and have learnt a lot.
First, look for what business guru Jim Collins called Level 5 leaders — incredibly ambitious, resilient, persistent and curious people, whose self-awareness and desire to learn mean they put the needs of others and the business above their own. When things aren’t going well, they take responsibility and eschew political game-playing; when things are, they have low ego and give others credit. In a world beset by unpredictability, they provide stability and direction — determined to do what is right, not what is easy.
Like Zillah Byng-Thorne, Auto Trader’s former finance chief. When the publisher Future hired her to become its chief executive in 2014, few predicted she would transform the company into one of the UK’s most valuable media assets. When she took over, the shares languished at 78p; when she announced in September 2022 that she was stepping down, they were about £16.50, with estimated annual profits of more than £270 million.
Second, note down every Level 5 leader you encounter. Whenever I meet or hear about someone who impresses me, I write their names in my little black book. I might not have the right role for them at that moment, but hopefully I will one day.
Third, if you don’t already know the perfect candidate, hire a top headhunter. I’ve had great success with Agnes Greaves at Russell Reynolds Associates, Korn Ferry's Hilary Attenborough, and Liz Corrigan and Joe Haim at Egon Zehnder — all with different sector specialisms and their own black books filled with candidates with whom they have built close relationships. Get two firms to pitch for your business by providing sample candidates to judge if they are on the right track.
Next, take control of references rather than delegating them to HR or the headhunter. Have ten-minute phone conversations with two people who will give you an “off the record” view of the candidate.
Past performance is a key indicator for me because second or third-time bosses can often be the best — people such as Octopus Energy's Greg Jackson, who is on his third chief executive role and has been highly successful.
Once you have a good selection, it’s time for the interviews. I use a simple technique gleaned from the consumer goods giant Procter & Gamble — Has Done, Can Do, Will Do. It helps you find evidence that the candidates have already been successful in areas relevant to this new role.
I also have my own ten “killer” questions that reveal a candidate’s character — such as asking them about a significant achievement or adversity conquered during childhood, or how they responded when things went wrong in their career because of something they did or didn’t do. I’d love to hear your own killer question.
Put them through to a final interview if you are already excited about working with them. If not, keep looking. For me, that final interview is all about candidates presenting a compelling business strategy for an existing market problem. I want them to tell us how we can run our businesses better, suggest ways of scaling bigger and faster, and outline the resources required and timescale needed to secure success. That’s exactly how Ross Clemmow became HomeServe’s outstanding new chief executive.
Next, don’t ignore internal talent. It can be a safer option because they know the company so well. Kevin Rountree joined Games Workshop as an accountant 25 years ago, rising through the ranks before becoming chief executive in 2015. Revenues at the company, which makes and sells the Warhammer fantasy war-game figurines, recently exceeded £200 million for the first time, and in the past five years, its shares have risen almost 250 per cent.
Finally, don’t ignore non-executive members of your board. Roger Whiteside was a non-exec at Greggs for five years before being asked to become chief executive in 2013. It was an inspired decision, as his strategy — focusing on food-to-go, particularly in travel locations — led to revenues doubling to £1.5 billion and a fivefold increase in its share price.
So often, #entrepreneurs and leaders tell me that one of their biggest regrets — one I share — is not having moved more decisively in getting in the right talent or releasing the wrong recruits. Because if you do so, and hire the right team of direct reports, whatever the circumstances, your business will succeed and grow.
Ten Killer Interview Questions
• Describe a significant achievement or adversity in childhood
• What has gone wrong in your career because of something you did or didn’t do?
• Are you a vision or detail person?
• What are your best business results from prior roles?
• What have been the two biggest achievements in your career?
• What are your strengths and weaknesses?
• How do you build a high-performing team?
• What is your favourite business book or theory?
• Tell me the two businesses you admire most, and why?
• Why do you want this job?