Are You Hiring a CEO or a Leader? Here Are Seven Critical Tests for Leadership Success

Are you still hiring your leadership team the old-fashioned way—basing decisions on what’s listed on a CV, the companies they’ve worked for, and the schools they attended? If so, you’re hiring managers, not leaders. Managers might keep operations smooth, but a true CEO must inspire, innovate, and lead transformational change. When you rely solely on surface-level qualifications, you risk missing the qualities that define long-term leadership success. To avoid this trap, consider these seven essential tests that every great CEO must pass to leave a lasting legacy.

1. Crafting and Communicating a Clear, Actionable Strategy

The most critical responsibility of a CEO is to set a clear strategic direction for the company. A great leader not only defines where the company should go but ensures that every employee understands their role in achieving that vision. Yet, according to Gallup, only 22% of employees strongly agree that leadership effectively communicates company goals. This gap demonstrates the frequent failure of many CEOs to articulate their strategy clearly.

When you’re hiring a CEO, don’t just focus on their past achievements. Ask: Can this person translate a vision into clear, actionable steps that everyone in the organisation can rally behind? Strategy without communication is a missed opportunity.

2. Building and Sustaining a Purpose-Driven Culture

Culture is the invisible force that guides how decisions are made, how employees interact, and how innovation happens. A strong, purpose-driven culture can make or break a company. In fact, Deloitte’s research shows that companies with a strong sense of purpose experience 42% higher retention rates and 30% more innovation. Leaders who focus on culture create environments where employees feel connected to the mission, not just their tasks.

Instead of asking about a candidate’s past company cultures, ask: Can this individual foster a culture that drives both purpose and performance? Culture is not static, and it requires constant nurturing.

3. Leading Organisational Transformation

In today’s fast-paced business environment, the ability to lead organisational transformation is essential. Whether it’s a digital pivot, navigating mergers, or responding to disruptive market forces, transformation is inevitable. However, McKinsey reports that 70% of transformation efforts fail, largely due to leadership shortcomings. The right CEO will not only manage change but will lead it decisively.

Take Satya Nadella, for example. When he became CEO of Microsoft, he embraced a transformative culture that reignited innovation, pushing the company into cloud computing and significantly boosting its market value. Instead of relying on past experiences with transformation, ask: Can they lead change with vision and resilience?

4. Assembling and Leading a High-Performance Team

A true CEO is not just a leader of strategy but also a leader of people. The best CEOs know how to identify talent, inspire their teams, and build a high-performance environment. Steve Jobs famously gathered a team at Apple that was driven by innovation and was empowered to challenge the status quo, taking the company to unprecedented heights.

Instead of focusing on individual accomplishments, ask: Can this candidate inspire and lead a team that will innovate, collaborate, and consistently perform at a high level?

5. Managing Crisis with Calm and Confidence

Crisis is inevitable in every business. Whether it’s a global pandemic, a financial downturn, or reputational damage, CEOs must face these moments with poise. According to PwC, 69% of global leaders have faced a significant corporate crisis in the last five years. The ability to manage such crises with calm and confidence often defines a leader’s legacy.

Look at leaders like Howard Schultz, who returned to Starbucks during the financial crisis and stabilised the company by refocusing on its core values. When evaluating candidates, ask: How have they handled crises in the past? Can they remain composed, and can they inspire confidence in their teams during turbulent times?

6. Listening and Learning from Feedback

CEOs don’t need to have all the answers, but they do need to have the humility to listen and learn. Leaders who actively seek feedback from their teams, customers, and the marketplace are more likely to stay ahead of problems and embrace opportunities. A classic example is Jack Welch, who transformed General Electric by fostering a culture of openness and transparency. His leadership was built on constantly seeking input from all levels of the organisation.

When assessing your candidate, don’t just ask about their communication style. Ask: Do they create a culture of feedback? Do they actively seek to learn and adapt from the people around them?

7. Leading with Humility and Keeping Ego in Check

Finally, the most effective CEOs lead with humility. Leadership driven by ego can lead to disastrous outcomes, where decisions are made for personal glory rather than organisational success. On the other hand, humble CEOs are more likely to build trust, collaboration, and loyalty across all levels of the company. According to Harvard Business Review, humble leaders generate higher engagement levels and create stronger long-term business outcomes.

Take Doug Conant, former CEO of Campbell Soup, who famously wrote over 30,000 handwritten thank-you notes to his employees to build a culture of trust and engagement. When interviewing candidates, ask: Do they exhibit humility? Can they make decisions that prioritise the organisation’s success over their personal ambitions?

Conclusion: Don’t Hire a Manager—Hire a Leader

If you’re still using outdated hiring practices to recruit CEOs, you may end up with someone who can manage—but not lead. To find someone who can take your organisation to the next level, you must look beyond traditional metrics of success. The seven tests above are crucial in identifying a CEO who can drive immediate results and ensure your company's long-term success.

True leaders are those who can pass these tests, who inspire their teams, navigate crises, foster transformation, and leave a legacy that endures. It’s time to evolve your hiring process and seek out those rare individuals who can lead with vision, humility, and purpose. After all, hiring a CEO isn’t just about filling a position—it’s about securing the future of your organisation.