Public company boards often hire CEOs using fuzzy adjectives like 'leader.' A better method is to first define 3-5 key strategic goals, creating a 'scorecard of success,' and then find a candidate whose track record specifically matches those objectives.

Success is often attributed not to a relentless personal grind, but to a superpower in attracting and retaining top talent. True scaling and outsized impact come from empowering a great team, embodying the idea that "greatness is in the agency of others."

Senior leaders now value candidates who ask excellent questions and are eager to solve problems over those who act like they know everything. This represents a significant shift from valuing 'knowers' to valuing 'learners' in the workplace.

Organizational success depends less on high-profile 'superstars' and more on 'Sherpas'—generous, energetic team players who handle the essential, often invisible, support work. When hiring, actively screen for generosity and positive energy, as these are the people who enable collective achievement.

Experience taught Herb Wagner that great leaders consistently surprise on the upside. He now weights leadership quality far more heavily, assessing CEOs not by interviews or charisma, but by their verifiable track record and through trusted backchannel references who have worked with them directly.

Unlike a functional manager who can develop junior talent, a CEO lacks the domain expertise to coach their entire executive team (e.g., CFO, VP of HR). A CEO's time is better spent hiring world-class leaders who provide 'managerial leverage' by bringing new ideas and driving their function forward, rather than trying to fix people in roles they've never done.

To clarify difficult talent decisions, ask yourself: "Would I enthusiastically rehire this person for this same role today?" This binary question, used at Stripe, bypasses emotional ambiguity and provides a clear signal. A "no" doesn't mean immediate termination, but it mandates that some corrective action must be taken.

High-growth companies create a virtuous cycle for talent. The faster a company grows, the more career advancement opportunities it creates, which attracts the best people. This influx of A-players then accelerates growth further. Conversely, stagnation creates a vicious cycle, repelling top candidates and making growth harder to achieve.

Lecturer Bill Meehan's former employees volunteered countless unpaid hours for him years later. Their reason: "we could never pay Bill back for what he did for us." This reveals a powerful, lagging indicator of leadership: the voluntary loyalty of former reports.