Clan Mentality in C-Suite

The enduring characteristic that is omnipresent in many folks in C-Suites and executive teams today (and in years past) has seemingly nothing to do with delivering results.  What got them there?  There are two distinguishable traits of an executive today, especially in startups that have transitioned from the original founders vision and mindset.  When the board or investors appoint new leadership - the exodus and mass-replacement begins.  There is suddenly many folks brought on board who are former colleagues and have at least one similar shop shared with the new CEO.

I'd argue, that because the CEO has so many challenges he's faced with from many dynamic pressures - IPO, board, investors, profit, acquisitions, product, customer satisfaction...

And, because of these pressures and the shrinking time-line to produce some results, the CEO is more apt to appoint former colleagues not because of their skills, abilities or ability to demonstrate performance in their respective craft - but nearly totally for the loyalty and trust established with the appointing CEO.  Not a completely bad thing. 

If you're like me, you'd expect (or hope) the loyalty and trust to be granted and upheld to the executive based upon a tenure established in their previous post because of their superior performance.  But, that is a noble desire and loft expectation and often untrue situation.  And, just because they may have exemplified and earned the trust and loyalty towards the CEO in the past - that doesn't indicate a likelihood to execute well in this new venture. 

This is what is called the clan mentality - where people surround themselves with like-minded and subservient people to uphold their mission.  I'd argue that would be the antithesis of what you should do, namely, by attracting the folks who you know won't give you the level of fresh insight that may make the difference in success and failure.  I think we should honor loyalty and respect for former colleagues has incredible value.  Not to mention, some may have the ability to reciprocate their previous superior performance and will deliver.  A Great VP of Sales can follow his system and build a great team to drive revenue and margins to the sky.

Take it with a grain of salt and take the staffing seriously, recruit always and often with an eye to attracting fresh blood and talent to the mix.  People who know how you work, what to do and how to uphold their part of the team are no doubt integral.  But, absent those who have varying experiences and the courage to challenge your decisions due to their precedent of experience is too valuable to not recruit outside talent.  Also, look inside the organization for some upward promotion opportunity, especially in companies who contain entire divisions with talent already familiar with the organizational culture, product.  

-James