Case: Leadership competencies matter more than professional ones. Once again
The CEO Was Hired for One Reality. He Succeeded in a Completely Different One.
Russian division of an international company, 2023–2025.
CASE | CEO SEARCH
CEO SEARCH
LEADERSHIP COMPETENCY ASSESSMENT
GEOPOLITICAL CONTEXT
Situation
A Major Market Player
The Russian division of one of the world’s largest companies in its industry, representing a significant share of the group’s overall business.
Geopolitical tensions had already escalated. Relations with the West were increasingly complex. The shareholders remained confident in the long-term potential of the Russian market and expected normalization over time.
The objective was to transform the local operation from a regional branch into a fully independent company with a dedicated CEO and all key functions based locally.
Primary
Search Priorities
Industry and product expertise
Important
Experience operating in an international environment
Important
Leadership capabilities
A Company in a Changing Reality
01 CONTEXT AND CLIENT REQUEST
01
Geopolitical Conditions Deteriorated
Relations with Europe continued to worsen. The expected normalization never materialized.
*The environment for which the CEO had been hired no longer existed.
Was This a Failure for the Company and Its CEO?
03
The Core Business Came Under Pressure
The company’s key business segment in Russia faced significant challenges.
02
Competitors Moved Faster
Domestic players adapted more quickly and improved their competitive position.
04
Expertise Became Less Relevant
The professional expertise for which the CEO had originally been hired was utilized only about 20% of the time.
Reality Had Changed Dramatically
02 TWO YEARS LATER
What Was Once Secondary Became Critical
03 AN UNEXPECTED OUTCOME
The Result
A business line that had originally been considered secondary became the company’s primary source of revenue. Its performance exceeded that of comparable operations in other countries by several times.
His entire career had been built in a different industry, where he had advanced steadily through leadership roles. This new business area was completely unfamiliar territory.
Rather than relying on past playbooks, he learned a new market, built the right team, and achieved results from the ground up.
Learning agility, decisiveness, results orientation, and the ability to build strong teams ultimately determined the outcome.
Yes—but it was not the priority scenario. The shareholders believed the core business would remain intact, so industry expertise was weighted most heavily in the search process.
Absolutely. However, they ranked second in our priorities rather than first. The outcome demonstrated that this order was wrong.
Without question. Leadership capabilities would have been the primary criterion, while industry expertise would have been considered important—but not decisive.
Three Questions and Three Honest Answers
04 REFLECTION
Did We Anticipate This Scenario During the Search?
Did We Assess Leadership Capabilities?
Would Our Search Strategy Have Been Different If We Had Known?
Curiosity and Learning Agility
A willingness to step into unfamiliar territory and learn quickly.
Decisiveness and Ownership
Taking responsibility and acting without waiting for permission.
Results Orientation
Maintaining focus on outcomes rather than activity.
Team Building
Bringing together the right people around a new challenge.
Flexibility and Adaptability
Changing course when needed without losing direction.
Creativity and Resourcefulness
Finding solutions where none seem to exist.
Cognitive Agility
Seeing multiple scenarios and possibilities at the same time.
Leadership Capabilities That Make the Difference
05 AUTHOR’S PERSPECTIVE
External factors can overturn even the most carefully designed strategy. These capabilities increase the odds of success regardless of the circumstances.
This case reinforces a simple conclusion: leadership capabilities are critical for CEOs, and the ability to assess them is a core skill for those making leadership appointments.
Key Takeaway
External factors can completely change the rules of the game.
Professional expertise is tied to a specific industry and may lose relevance when that environment changes.
Leadership capabilities remain valuable regardless of the circumstances.
Before
Leadership capabilities were assessed, but they were considered a secondary criterion.
After
Leadership capabilities became the primary filter. Industry expertise became a secondary consideration.