A company’s success largely depends on a capable senior leadership team that drives it toward its goals. Under strong, dynamic leaders, employees gain a clear sense of direction and the motivation to participate and make contributions. Given the critical role these leaders play, hiring for senior leadership teams demands precision and insight for team success and growth.
That said, what does a senior leadership team consist of, and what’s the best way to test for the skills required for these roles? Dive in as we discuss these points in detail, from what makes an effective leadership team to how you can assess these skills when hiring.
What is a senior leadership team?
A senior leadership team sets a company’s vision and charts strategies for reaching those goals. Commonly known as the C-suite team, they shape the organization’s brand and objectives, set goals accordingly, create policies, and oversee daily operations to ensure goal alignment. They also finalize decisions, solve problems, and manage other employees, ensuring overall effectiveness within the entire company.
Without a capable senior leadership team, employees have no common aim or target and could struggle to understand how they fit into the organization. In essence, this team is the company’s foundation and generally determines how far the organization will go.
What roles make up a senior leadership team?
A senior leadership team consists of different roles, and while these roles vary depending on the company, certain positions are common to most organizations. In this section, we’ll list these key positions and discuss their functions within the team.
1. Chief Executive Officer (CEO)
Being the foremost member of the senior leadership team, the CEO serves as the face of the company and represents it in public. The CEO sets the company’s pace, details its goals, and presents strategies for achieving the vision. Additionally, CEOs manage relationships with the rest of the C-suite team and steer the entire company in the right direction.
2. Chief Operating Officer (COO)
COOs handle the organization’s day-to-day operations and check that employees’ tasks align with the company’s objectives. They oversee the various departments within the organization, working directly with the teams to ensure seamless project execution and compliance with company directives. They also take note of challenges and propose solutions for optimum performance within each team.
3. Chief Financial Officer (CFO)
CFOs are responsible for the organization’s finances, tracking its income, expenses, and budgets to keep it profitable. They develop financial plans, carry out audits, and prepare reports to communicate the company’s financial status. Based on their plans, they determine what financial decisions or investments are suitable for the company’s growth and which are ill-advised.
4. Chief Marketing Officer (CMO)
Marketing and customer relationships are vital for profit-making, and these are the CMO’s main focus areas. They develop strategies to promote the organization’s products or services, attract customers, and increase sales. They are also in charge of the company’s image and branding, devising strategies to maintain a strong public reputation.
5. Chief Technology Officer (CTO)
With the business world becoming more digital every day, CTOs ensure that the company stays technologically competitive and innovative. This means integrating technology that supports the business goals and helps achieve targets more efficiently. Their responsibilities span from maintaining and acquiring new IT equipment to in-house software development.
5 important characteristics of effective senior leadership teams
Senior leadership teams must be well-equipped with the soft skills needed to navigate day-to-day challenges and drive productivity. Here, we’ll explore five key characteristics every leader should possess.
1. Clear, aligned vision
Employees follow the vision the senior leadership team sets, meaning that poor clarity in this area leaves the entire organization in the dark. An effective senior leadership team should be able to agree on the company’s direction, priorities, and periodic objectives. Besides noting these goals, they should also be able to provide a detailed roadmap to guide the team toward achieving them.
2. Effective communication
A 2023 Grammarly report stated that business leaders experienced an added 15% decrease in company productivity due to poor communication. This shows that clear communication from leaders helps employees understand company goals and actively contribute towards them, leading to better results.
Furthermore, effective communication goes beyond sharing the vision; leaders also inspire the team and boost their morale. To achieve this, they should be able to convey the purpose and driving force behind each objective, making employees see why they should share in the vision.
3. Strong decision-making and problem-solving skills
When running the company, the leadership team is bound to face complexities or obstacles that demand swift, decisive action. The quality of their decisions in these moments can make or break the company. As such, they must have superior decision-making and problem-solving skills. In difficult scenarios, effective leaders should be able to analyze the problem’s root cause, identify solutions, and make objective decisions that align with the company’s needs.
4. Conflict-resolution
Even the most cohesive teams have misunderstandings sometimes, and effective leaders should be able to handle them with emotional intelligence. Without conflict-resolution skills, disagreements between employees could spiral into broken relationships, creating a tense work environment that hinders productivity.
By listening to understand, empathize, and show respect, they can resolve disagreements and fairly address each party’s concerns, promoting a peaceful atmosphere that supports growth.
5. Adaptability
Business is dynamic, and leaders regularly face unique situations and trends. In fact, a 2022 Capterra survey stated that 78% of employees experienced more change at their jobs during the COVID-19 pandemic than at any other point in their careers.
To be effective, a leadership team should be able to make quick adjustments depending on the circumstances to keep the organization running smoothly. They should be open to new developments and readily integrate these changes into the company’s processes to stay relevant and competitive.
How to test for these characteristics during the interview process
A 2023 ResumeLab survey reported that 7 in 10 workers confessed they had lied on their resumes, and 37% admitted to lying frequently. This proves that resumes aren’t the most reliable hiring tool, especially for hard-to-hire senior leadership roles. Here, we’ll explore four trusted ways to test for leadership skills.
1. Behavioral interview questions
Behavioral interviews give you a chance to hear how the candidate has performed in previous leadership roles. Here, you can interact with them one-on-one, evaluate their communication and thought process, and then determine whether they suit your organization. These should be structured interviews, and questions should encourage candidates to share past experiences.
For example, you can ask them to discuss a time they had a disagreement with a colleague and how they handled the situation. A question like this gives you insight into their communication, conflict resolution, and teamwork skills.
2. Group interviews and sessions
In group activities, you place candidates in a team setting and assign them a task to observe each person’s collaboration skills. Effective leaders are dynamic and interactive in their teams, so these sessions show you who flows seamlessly and engages with people when handling collective tasks.
Here, each candidate gets an opportunity to lead others for a select time and even use hypothetical challenges in the tasks. This way, you can judge beyond their emotional intelligence or people skills and see how efficient and adaptable they are with problem-solving.
3. Reference checks
Reference checks help you verify information with candidates’ previous employers. By doing this, you get a completely accurate picture of who your candidate is and how they behave in work settings.
Ask candidates’ references to describe their leadership style, goal-setting techniques, and their results. You can also inquire about their relationship with the rest of their team, their engagement style, and their level of interaction. In addition to your evaluations, this information helps you make more thorough decisions and reduces the chances of making costly hiring mistakes.
4. Skill assessments
Skill assessments are objective tests that evaluate an individual’s ability to perform well in a particular role using questions that depict tasks peculiar to the job. Based on their results, you can get an objective, bias-free view of the candidate’s skills and determine their job fit for the position. Leadership skill assessments specifically test qualities required for leadership roles and judge how well the candidate aligns with the company’s needs.
These assessments are usually automated, so you need high-quality software to ensure accuracy. Vervoe is among the top hiring and recruitment solutions on the market today, offering a variety of comprehensive assessments for several jobs, including leadership roles. Each assessment is detailed and evaluates the specific skills needed for the job by asking questions about everyday responsibilities in said role.
Vervoe’s assessment library offers over 300 templates and 300,000 questions, allowing you to customize assessments to your company’s needs. You can administer these tests in different formats, including multiple-choice, video, or presentation, depending on what the role you’re hiring for demands. For detailed evaluation, Vervoe also provides job simulations that let you see their response to typical leadership scenarios in real-time.
Additionally, Vervoe’s AI grades and ranks each candidate’s response instantly and automatically, taking the load of manual grading off your shoulders. With this feature, you can train the system to recognize what qualities are a priority for your senior leadership team and organization. Then, the software grades each test based on your standard and ranks each candidate by their job fit, preventing hiring bias.
Other notable features include branding, personalization, and candidate support tools that give your candidates an engaging experience and improve your company’s image. Our software is easy to use and integrate, helping you ensure you have the most capable senior leadership team to move your company forward.
Building a capable senior leadership team is easy with Vervoe
Getting your leadership team right is paramount, as their effectiveness will determine your company’s growth. But, to build a strong team, you must understand what characteristics a leader needs and be able to spot them quickly, and this could be challenging.
Vervoe’s leadership skill assessments can comfortably handle this burden and show you the ideal choice for your specific leadership needs. Whether you’re using our AI-powered assessment tests or job simulations, you can conduct reliable evaluations for any leadership position in no time.
Need to see our software in action? Schedule a free demo and enjoy Vervoe’s hiring power today.
