Situational Overview

A MedTech CEO tried to avoid the cost of a search, and hired a leadership team whose members were in conflict with each other. Each person’s world view, interests, temperaments and work styles were vastly different, and the team couldn’t function.”

BACKGROUND

An early-stage California-based Medtech company had significant milestones to reach: It was raising series-C funding, it was one year away from FDA approval, and two years out from commercialization. External posturing was important while raising capital. Unfortunately, challenges arose between the CEO and the founder, which created tension between them and among the leadership team.

The company was at an inflection point and was ready to hire three critical leaders. The CEO had what seemed like a perfect opportunity. Trying to make a good financial decision in a rough economy, he reached out to several people with whom he’d worked before (and who were available). It seemed he had a straightforward path to having the right team – great candidates whose timing was right and the chance to preserve cash while fundraising.  The CEO hired each person and all seemed well.

CHALLENGE

After six months, things weren’t going well. Big and small issues started to infiltrate the leadership team and literally spoil the organizational culture. Before long, he had a major challenge on his hands that he described as cancerous. Other business responsibilities accumulated and he couldn’t focus all of his time on this, but he tried. He came to realize that he didn’t hire the right people, individually and culturally as a group.

Why? In some cases, reporting structures changed, others had a tough time assimilating into a small company environment, others had substantially different work styles that were problematic, and others had troubled home lives that challenged the day-to-day. What to do?  Each person seemed so perfect but they weren’t working out individually or as a harmonious team. What needed to be done couldn’t be done. The CEO knew this logically but he was fundamentally stuck with a problem that he couldn’t fix, solve, or openly talk about to board members, investors, or certain members of his team.

SOLUTION

Allen Partners conducted one-on-one coaching with the CEO and his leadership team to uncover the sources of the ongoing conflict and manage it. After spending much time with each person, it became clear what was wrong and what needed to be done. Each person – including the CEO – was given things to work on and everyone was held accountable. We learned about each person in a way that was deeper, dignified, and critical for them to work together and grow in respect. Mutual respect improved and big and small issues were addressed.

RESULTS

Internal conflicts were managed. The company successfully closed on capital, gained FDA approval and is rapidly increasing its value.

TAKEAWAY

The CEO believed he was avoiding the costs associated with an executive search, but he hired a team that wasn’t right for him, and paid dearly in terms of lost time, money and deadlines. He may not have needed a search, per se, but he did need a trusted partner who could help him discover unspoken information that would make the difference between a successful or failed hire. Today, he says he’ll never hire without Allen Partners when he has a critical need, whether it be a search, a leadership issue, or when he needs to validate someone already in his network, he contacts Allen Partners to help him make informed decisions.