| Everyone loves a good sports analogy. The upcoming | | | | in business. Without a business leaders Combine |
| NFL Draft prompted me to consider how the player | | | | performance and reels of film to review, we have to |
| selection process compares to how businesses | | | | rely on other measures to help determine a prospect's |
| succeed with executive recruiting. Because I'm | | | | potential for success. |
| interested in how organizations assess a leader's | | | | But what can the NFL draft teach us about executive |
| capabilities and their subsequent success, I set out to | | | | recruiting for our business's top leaders? |
| determine whether the NFL can offer a few tips to | | | | 1. Don't hire a wide-receiver to be your linebacker. |
| improve an organization's executive recruiting. | | | | A successful corporate and NFL leader has |
| A recent New York Times article about Harvard | | | | experience and expertise doing specifically what you |
| Business School (HBS) research gave me the basis | | | | need to have done. In the NFL, the large majority of |
| for a football and business comparison. The research, | | | | players play one position in college, perform at the |
| conducted to determine whether CEOs learn from a | | | | Combine in that same position and will attempt to |
| failed business experience, studied entrepreneurs | | | | make an NFL roster in the same position. The |
| CEOs who received venture capital (VC) funding. | | | | successful NFL franchises use caution to avoid |
| While a fun and timely comparison, there is a basic | | | | becoming awe struck by the super athlete, for |
| similarity between venture capital firms and NFL | | | | example Bo Jackson. It's interesting to note that |
| organizations. Both NFL teams as well as venture | | | | Jackson did not play in a single Pro Bowl game, and he |
| capital firms operate in a high risk and high reward | | | | played in only one Baseball All-Star Game. NFL teams |
| environment where executive recruiting is a rigorous | | | | and the individual players know their individual role, their |
| exercise to minimize risk and maximize reward. | | | | specific strengths and weaknesses in that role and |
| The HBS research found that "...for the average | | | | where their teammates need to support their |
| entrepreneur who failed, no learning happened." What | | | | deficiency. |
| they found was that the only experience that counts is | | | | In Corporate America's executive recruiting, the leader |
| success. HBS's definition of success was going public | | | | you hire should have industry knowledge and, based |
| or filing to go public during the time period from 1986 to | | | | on my NFL research, the executive should have |
| 2003. | | | | recently played a similar role in a successful, previous |
| Research Findings:o 1st time entrepreneurial CEOs | | | | business. |
| who received VC funding had a 22 percent success | | | | 2. It's hard work to assess soft skills. |
| rate.o Entrepreneurs whose companies had been | | | | I talked briefly with Titans' General Manager Mike |
| liquidated or gone bankrupt had a 23 percent follow on | | | | Reinfeldt about this article and asked him whether soft |
| success rate. Take away: Failure resulted in only one | | | | skills are important in determining which player the |
| percentage point of learning.o Already successful | | | | Titans draft. He quickly stated, "Very important". Mr. |
| entrepreneurs had a 34 percent success rate in their | | | | Reinfeldt added that the draftee will be paid like a |
| future role of leading a VC funded business. Take | | | | leader, looked upon as a leader and expected to be a |
| away: Greater learning gained from success. | | | | leader. How he communicates with the team, the |
| As I watched ESPN's Draft Review one evening, Mel | | | | coaches and the community is very important. Draft |
| Kiper, Jr. and others debated each NFL team's | | | | prospects are interviewed by multiple people to |
| probable selections and who they believed were the | | | | assess fit within the organization and community, which |
| best available performers. Kiper pointed to an | | | | Mr. Reinfeldt stated was equally important to the level |
| individual's performance on the field during the last | | | | of athleticism. |
| three years, at the recent Combine and during | | | | A business leader's soft skills and ability to be effective |
| workouts with NFL team scouts in discussing the | | | | with investors and the board, senior management and |
| player's projected success in the NFL. Suddenly, it hit | | | | staff, prospects and customers, policy and regulatory |
| me. Each NFL prospect goes through tremendous | | | | authorities, vendors and those within the community |
| public scrutiny on specifics of his past and recent | | | | are vitally important in your executive recruiting |
| performances to determine the environments where | | | | process and hiring the right leader. |
| the player would be most likely to succeed. I laughed | | | | 3. The Heisman Trophy winner may not be the best |
| as I wondered; can NFL teams and the NFL draft | | | | leader. |
| teach VC firms how to improve executive recruiting | | | | Only two of the eight Heisman Trophy winners |
| outcomes? | | | | selected from 1996 to 2003 have been named to a |
| I decided to compare business leaders to Top 10 NFL | | | | Pro Bowl. An equally interesting comparison is that |
| draftees. Each year these Top 10 NFL draftees are | | | | during the 1986-2003 time period, eight individuals who |
| the highest paid athletes, they are clearly world-class | | | | were #1 draftees made at least one Pro Bowl while |
| performers and they are expected to provide team | | | | seven individuals who were #10 Draftees made at |
| leadership. HBS researchers used 'going public' as their | | | | least one Pro Bowl. There is a dramatic perception |
| measure of success, and I decided to measure each | | | | difference and guaranteed income difference |
| of the NFL's Top 10 Draftee's success by being | | | | between the Number 1 draft pick and the Number 10 |
| named to the annual Pro Bowl. I used the same 1986 - | | | | draft pick; however; the significant income difference |
| 2003 time period and needed to determine the | | | | does not correspond to results on the field. |
| percentage of Top 10 NFL draftees who achieved | | | | When a business experiences a vertical growth |
| Pro Bowl status. Additionally, I wanted to know which | | | | trajectory, it creates the perception that the company's |
| players among this draft group achieved follow-on | | | | leaders are truly world-class. As a result, we may rush |
| success, defined as being named to multiple Pro | | | | to hire an individual from this company. While this |
| Bowls. The results of my research:o Top 10 NFL | | | | strategy may lead to a great hire, do not let yourself |
| draftees who played in at least one Pro Bowl: 43 | | | | get caught up in the excitement and conduct the |
| percento Of the Top 10 NFL draftees who played in | | | | executive recruiting process without proper and |
| at least one Pro Bowl, the percentage of these same | | | | thorough diligence. |
| Top 10 NFL draftees who played in more than one | | | | In Summary: |
| Pro Bowl: 73 percent. | | | | My light-hearted comparison was interesting to highlight |
| Venture capital firms successfully choose the right | | | | a few thoughts to consider when hiring a key |
| performer 22 percent of the time while NFL teams | | | | executive. Companies do not follow business leaders |
| successfully chose the best performer 43 percent of | | | | like the NFL follows prospects; nor do we interview |
| the time. Even more contrasting, those who succeed | | | | business leaders like the NFL Combine. Top executive |
| with venture capital firms achieve a 32 percent | | | | recruiting firms may be a very good resource to you |
| success rate in a follow-on attempt where NFL | | | | as they are supposed to know these business leaders |
| players who achieve one Pro Bowl have a 73 percent | | | | well and possess knowledge of their past |
| success rate in being named to at least one additional | | | | performance. Additionally, a good executive recruiting |
| Pro Bowl. Some light research (loosely using the term | | | | firm should also have the ability to thoroughly and |
| "research"), reveals that the NFL is twice as good in | | | | accurately assess a prospect's relative fit within your |
| identifying top performers. Even more interesting is that | | | | organization and his/her performance ability. But once |
| the NFL teams that hire correctly end up picking | | | | your executive recruiting firm has identified, assessed |
| long-term performers. Again, performers who achieve | | | | and recommended top candidates for an executive |
| our definition of success, a Pro Bowl invitation, are | | | | position, it's still important that the investors, board |
| more than 73 percent likely to have future success! | | | | members and senior leaders engage to assess both |
| Granted, the NFL's decision makers have resources | | | | the hard and the soft skills of the top draft pick before |
| not available to venture capital firms and the rest of us | | | | adding him or her to the corporate roster. |
