Appointment as a strategic choice. Search as the exploration of solution options
The First Search Found a CEO. The Second Found a Strategy.
CASE | CEO SEARCH | TWO ROUNDS
РЕ FUND
INTERNATIONAL IT COMPANY
USA
TWO SEARCH ROUNDS
PE Fund. International IT Company. USA
01 CONTEXT
The founder had managed the company since inception. The team was based in Europe, while the US business was the fastest-growing market.
Business Structure
01
The company had strong engineering capabilities, but its customer base was primarily small and mid-sized businesses. Custom development and outsourcing generated more revenue than proprietary products.
Product Challenge
02
The PE fund acquired a controlling stake. It saw growth potential in the US market and enterprise customers. The company needed a US-based CEO with a proven track record of revenue growth in a similar business.
Fund’s Request
03
Request: Proven Revenue Growth in the Mid-Market Segment
02 FIRST SEARCH
The finalists were three candidates from mid-sized companies with a track record of significant revenue growth.
Key selection criteria: proven growth results and strong motivation to take the next career step.
CEO Experience
Delivered revenue growth in a similar B2B business. Focused on direct enterprise sales.
CEO Experience
Similar profile. Deeper expertise in enterprise sales.
Chief Commercial Officer
Tripled the business in three years. Highly motivated to step into a CEO role and replicate the success.
The market became more challenging and competition intensified.
The reliance on inbound demand did not work.
He failed to build effective collaboration with the European team.
Engagement declined, and several key technical leaders left the company.
Profitability did not improve.
Root Causes
No Prior CEO Experience
Managing a full P&L and a global team required a fundamentally different set of capabilities.
Strategy Did Not Adapt to the Market
The approach built on previous experience was not adjusted to new competitive realities.
US–Europe Leadership Gap
Managing a distributed team required different capabilities than leading a local organization.
It Became Clear: The CEO Was Not Delivering
03 11 MONTHS LATER
CEO Experience Only
Experience leading a distributed international team became a requirement, not a preference.
One Role, Three Profiles
Instead of a single candidate profile, we developed three strategic scenarios—each requiring a different type of leader. The client was choosing a future, not just a CEO.
Challenging the Original Assumptions
We introduced options the client had not previously considered. That was the real value of the search process.
The Second Search Redefined the Challenge
04 AUTHOR’S PERSPECTIVE
“My view is that a CEO search is not only about finding a person. It is about choosing a strategy. Different candidates represent different futures for the company.”
A Lesson from the First Search
Three Candidates — Three Different Futures
05 SECOND SEARCH | THREE SCENARIOS
Commercial Growth Focus
All three candidates had CEO experience, a track record of leading distributed teams, and a strong understanding of the IT market. What differed was their strategic vision.
Cost-Efficiency Focus
Product-Led Growth Focus
An aggressive enterprise sales strategy supported by marketing.
Built on the lessons of the first search and closely aligned with the original mandate.
Reducing the cost base through expanded offshore development capabilities.
The goal was to become more competitive on price in an increasingly challenging market.
Improving development quality and building proprietary products.
The selected candidate came from a large organization and had experience managing an independent P&L.
The company’s valuation and profitability increased multiple times over, significantly outpacing market growth.
CEO appointments are not about finding the “best candidate.” They are about choosing a strategy. A well-designed shortlist makes that choice visible.
Transformational Growth Over Three Years
06 OUTCOME
A leader with experience in a much larger international organization—even at the CEO-1 or CEO-2 level—proved to be the right choice.
A focus on quality and proprietary products created a sustainable competitive advantage and a foundation for future growth, rather than competing on price.
The second search gave the client a choice of strategies, not simply a replacement CEO.