Big Company Executive Struggles

Andrew Wilkinson shares his perspective on hiring CEOs, particularly focusing on why executives from large companies often fail in smaller organizations. His experience running 40 companies worth $500M has shown that successful CEO hires come from appropriately-sized companies with hands-on experience.

Key Points:

• Big Company Executive Problems:

  • They don't know how to function without extensive support systems
  • Often dependent on established processes and handbooks
  • Struggle when they need to build systems from scratch

• Ideal CEO Background:

  • Should come from a company 2x (not 20x) the size of yours
  • Previous experience in similar industry or business model
  • Hands-on experience building and running systems
  • Typically better to hire a #2 from a larger company than a big company CEO

• Restaurant Analogy:

  • Like hiring an Olive Garden manager to run a single restaurant
  • They understand how to follow systems but not create them
  • May struggle without corporate infrastructure and support

• Hiring Strategy:

  • Avoid flashy executives with big company backgrounds
  • Look for people who have built things from scratch
  • Seek those who understand the scale and challenges of smaller operations
  • Focus on candidates who can operate without extensive support systems

• Cultural Fit:

  • Must be comfortable with limited resources
  • Should be hands-on and willing to build systems
  • Need to understand the scrappy nature of smaller operations

This perspective emphasizes the importance of finding CEOs who have relevant, hands-on experience rather than just impressive corporate titles.