The appointment of a CEO is always one of the most sensitive decisions that a board or shareholders of a company can make.

A CEO determines the path of development of an organization, on the one hand, determines and creates organizational culture on the other and bears responsibility for overcoming difficulties and getting benefits from the opportunities. But how can one guarantee that they have chosen the best for the organization’s needs?

Evaluating leadership potential during a CEO search is not easy and is a combination of good analysis, judgement, and an understanding of what the job involves. 

In cases where a company is using professional CEO search services or in situations where the process is handled within the company, there is a need to undertake a proper analysis of a candidate’s leadership prospects.

This is How You Assess Leadership Qualities During CEO Search

#1: Define Leadership in the Context of Your Organization

It cannot be said that leadership means the same thing in every organization, in every department, in every team or division, at every level and in every country. When you are ready to evaluate candidates, make sure you know what leadership is according to the framework of your company.

It also makes it easier to match a candidate’s abilities and approach to leadership with the achievements you have set for your business. For example, someone leading in the communication sector consultancy might require a collaborative style, while a manufacturing-based firm might value stringent operational oversight. Defining this context is the foundation of an effective assessment.

#2: Evaluate Visionary and Strategic Thinking

Merely, there is a need to think big and this is why a CEO should be over-ambitious to think big and also be realistic. That means you need to find a leader who can think or can think beyond the current fiscal year, the current business strategy, and the current business model.

Think about how the candidate maps it out to existing and future trends, changes, and disruptions within the market.

To evaluate this, ask strategic, situational questions during an interview, such as:

• “How did you implement a long-term vision in your previous role?”
• “Can you walk us through how you’ve managed unexpected marketplace disruptions?”
• Do their responses demonstrate clarity, adaptability, and an ability to inspire others to rally behind their vision?

#3: Communication and Influence: A Core Leadership Skill

A great leader doesn’t work on his own, he also leads others towards the execution of certain goals. It is crucial to assess if the candidate can communicate both strategically & empathetically.

Another aspect to test is their influence. A CEO must foster trust, encourage collaboration, and even persuade resistant employees or board members to embrace change.

#4: Emotional Intelligence: A True Marker of Leadership

Technical skills coupled with soft skills, however, lack of emotional intelligence (EI) differentiates the average CEOs and the great CEOs.

EQ assessments can reveal how potential CEOs navigate challenges like conflicts within the senior team or moments of organizational uncertainty.

Seek people who have awareness of self and others, people skills, tenacity and courtesy, and people who do not lose their temper easily.

#5: Adaptability in a Fast-Changing Landscape

The business context today is a dynamic one, and thus, the business has to avoid what may be called a ‘business-as-usual’ approach. Every strong contender for the CEO needs to be flexible in the process of decision making as well as prepared to change when necessary.

Adaptability has to do with a leader’s ability to be calm in the midst of a tornado, which is a very valuable skill nowadays.

#6: Assess Cultural Alignment and Team Building Skills

A CEO’s leadership shouldn’t exist in a vacuum. Their style and vision must harmonize with your organization’s culture while establishing a strong foundation for team collaboration at every level.

Having candidates participate in informal team discussions or leadership simulations with senior management is a great way to observe their ability to foster collaboration, delegate effectively, and lead with diplomacy.

#7: Proven Experience: A Track Record of Leadership

No assessment of leadership is complete without examining a candidate’s previous accomplishments. Pull back the curtain and examine the true impact of their tenure in past roles.

Key questions to consider include:

• Did they successfully manage interim management services during periods of organizational shifts, such as mergers or financial crises?
• How did they handle scaling operations, navigating new markets, or achieving sustainable profitability?
• Have they created a leadership pipeline and mentored talent to secure the long-term health of the organization?

#8: Include Psychometric and Behavioral Assessments

While interviews and reference checks are traditional tools, psychometric assessments can offer an unbiased window into a candidate’s personality, behavioural tendencies, and leadership potential.

These tests evaluate traits like problem-solving abilities, resilience, decision-making under pressure, and alignment with organizational culture. Pair these assessments alongside real-life scenarios or case interviews to test whether a candidate’s personality fits the role demands.

#9: Never Overlook References and Due Diligence

Lastly—and perhaps most importantly—conduct thorough reference checks. Speak with former colleagues, board members, and direct reports to gather insights into the candidate’s leadership methods, relationships, and decision-making.

Focus your conversations on understanding how the candidate inspires loyalty, handles conflicts, and creates measurable impact.

Rely on the Best CEO Search Firm - The Taplow Group

At The Taplow Group, our professionals help organizations attract and retain talents that drive growth and momentum. We understand that different values and objectives drive every organization, and for that, we bring experience, objectivity, and best practices to the table.

Assessing leadership qualities during a CEO search is as much about science as it is about intuition. Clear criteria, structured interviews, strategic psychometric tools, and well-executed reference checks will help ensure that you find not just a great leader but the right leader.