So You Want to Be the Head Honcho?

BC has bought DFG, LMN has merged with XYZ, and so on. And most of these new entities need CEOs. Some bring in a new person, others promote from within. Either way, you figure you’ve got a shot. All you need to do is determine if you have the skills.

Below is a simple test broken into two key areas of your new job. (Scoring is on the next page. Be warned that the methods are different for each skill set.)

Before you take the test, you should know something about the company. Big Business Inc. (BBI) is a 12-year-old privately held DM firm that has been bought by Anonymous Inc. BBI had sales of $100 million in 1997 and $120 million in 1996. Since the sale, BBI has trimmed down from 140 employees to 102. BBI sells gift merchandise through catalogs, direct mail, the Web, DRTV and space ads. It has no business overseas and no plans for international expansion.

Questions From the Press

1. Can you confirm that sales have been off for BBI?

a. “We’re ahead of projections and foresee significant increases in the near future.”

b. “Yes, but we have taken corrective action.”

c. “Sorry, that’s confidential.”

2. Rumor has it that there have been some layoffs.

a. “Nothing could be farther from the truth-in fact, we’re hiring.”

b. “We’ve combined forces with our parent company and, in doing so, we reduced labor costs while only retiring four people.”

c. “Sorry, that’s confidential.”

3. How has your Web site contributed to the company’s growth?

a. “Like most companies, we’re not quite getting the results we’d like, but we know that we need to test this medium.”

b. “Sales are terrific. The site will definitely help us more than double our projections this year.”

c. “Sorry, that’s confidential.”

4. What are your plans for international expansion?

a. “We have such a great product line for international sales that this is an absolute natural.”

b. “Definitely, but first we want to make sure that our home base is solidly growing.”

c. “Sorry, that’s confidential.”

Staff Interaction

First day: Comments to the staff.

a. “You’re going to see some real changes around here. I’ve got a million ideas I can’t wait to run by you. Granted, my experience doesn’t exactly fall into what you do here, but what I’ve done before will most certainly apply. I’ve got an open door; come by at any time with your suggestions. Oh, I forgot to mention that I will be traveling frequently, so leave your thoughts with Stella.”

b. “I’m big on questions, so be prepared to answer a lot of them. Does that mean I think you’ve been doing a lousy job? No, it means I want to learn from you and learn fast. We all want results and we’ll get them together.”

c. “Sorry, I’d rather not talk about anything right now; I am observing and will get back to you once I have a plan.”

First month: Comments to the staff.

a. “I’ve created new teams and each team leader has a list of my ideas to get this company back on track. Though I’d rather work alone, I want you with me on this, so get on it!”

b. “You’ve all done great work, but sales aren’t what they should be. We will be initiating a bonus system which rewards employees for ideas that make money for the company. I’m also creating an executive committee to generate ongoing communication from key personnel.”

c. “Any idea how we can get out of the hole my predecessor dug for us?”

End of first six months: Comments to the staff.

a. “I have to admit that I’m somewhat concerned about the new business development budget-what do you mean nobody asked for any P&Ls on my new ideas? Why hasn’t somebody followed up on this?”

b. “As you know, we’ve had to make a few adjustments in the executive staff. Be assured that this does not mean your job is threatened. Here is the written game plan, complete with names assigned to projects and expected return on investment.”

c. “We don’t seem to be making much progress so I’ve made additional adjustments in the staff. We now have just two of the original team members and I suspect you will see some interesting results. “

End of first year: Comments to the staff.

a. “Well, it’s been one interesting year. Some of us may have had expectations, myself included, that were too high. We’re not going to make the same mistakes next year.”

b. “Through our executive team meetings, we defined our expectations, prioritized our ideas, provided realistic P&Ls and pulled ahead of last year. Great work, team!

c. “The accountant is working on the numbers, so I’ll have to get back to you on our current sales.”

Press answers:

1. a. +10 pts. b. -2 pts. c. +2 pts.

2. a. +10 pts. b. +4 pts. c. +2 pts.

3. a. +2 pts. b. +10 pts. c. +2 pts.

4. a. +10 pts. b. -2 pts. c. +2 pts.

Press scores:

0-15 Go back to the farm.

16-34 Practice, practice, practice.

35-40 You’re almost at the top-if you pass the staff test.

Staff scores:

If the majority of your answers were

a.: Consider the military.

b.: Too good to be true; but if you watch your back, you might make it.

c.: Most likely to prevail.

If you had a combination of letters and passed the press scores, you’re a shoo-in!