The University of Colorado is a multi-million-dollar brand that needs a seasoned, strong and steady chief executive to repair its image and take it to the next level. The Board of Regents' search to identify the best candidate to replace
University President Betsy Hoffman should focus on professional managers who embody the same traits as successful CEOs in the for-profit sector.
A successful chief executive has five key action capabilities: The ability to take charge, confront reality, manage people and events, and maintain strong revenues and growth while effectively executing strategies and plans. However, those action capabilities are enabled by some fundamental personality traits and values which the successful chief executive must possess first, such as being bright, technically and managerially competent, ethical and courageous. Top chief executives have the fundamental personality traits as elements of a foundation that supports their action capabilities. You have to pack the gear before you can climb the mountain.
The regents must attract a replacement candidate who has all of those personality traits and action capabilities, and more. Effective execution will be extremely important, especially regarding the knotty people and organizational issues which must be dealt with immediately. Tough decisions need to be made – and now. The elephants need to be herded off the conference room table.
A university president, after all, faces many of the same critical tasks that must be achieved by her counterparts in the for-profit sector – developing plans and strategies, managing a huge financial enterprise with multiple revenue streams, hundreds of employees, numerous divisions and direct reports, an array of locations, a demanding board of directors and thousands of stakeholders, in addition to brand stewardship demands. As in the for-profit sector, a chief executive in academia must be a superb and capable manager who is sharply focused on getting the right things done. So, doesn't it just make good sense to conduct the search for Hoffman's replacement with those facts clearly in mind?
In asking for Hoffman's resignation, the University of Colorado Board of Regents – which essentially operates as a board of directors would in the business world – took action no different than the boards of Hewlett Packard in asking for the resignation of Carly Fiorina last month or the Boeing Corporation in showing Harry Stonecipher the door this week. In all three cases, events managed the chief executive rather than the other way around, and the boards had to act on behalf of the stakeholders.
It doesn't matter whether it is a CEO or university president, a board of regents or a board of directors. The people charged with guiding the enterprise have an obligation to manage the organization in such a way that its brand will be
protected, its revenues will remain strong and its stakeholders will derive maximum benefit. At the end of the day, the CEO's job is to grow the value of the enterprise which has been entrusted to her, and not let that value erode.
Valant is president and CEO of Denver-based Valant & Co., a business performance improvement consultancy with more than 30 years of experience in helping business and industry to grow bottom-line profits. |
