Richard Wilson: the temporary CEO test of industry expertise
Richard illustrated operating expertise through an investor's ability to take temporary responsibility for a company while recruiting its next leader.
The example gave expertise an operating task
In his portfolio module, Richard discussed investing in a narrowly understood business niche. He listed ways that knowledge could be used inside a company, including helping hire people and temporarily taking responsibility for leadership.
Control carried a practical question
The interim CEO example asks what the investor can actually do when a company needs help. It gives substance to Richard's distinction between observing an investment and being able to intervene in its operations. Richard used temporary leadership as an example of operating capability.
In Richard C. Wilson's words
"step in as CEO for a month while you hire a new CEO as needed" (Richard C. Wilson, How to Start a Family Office mini-series)
How to use this
- Identify the operating responsibility an investor could credibly assume in a difficult period.
- Distinguish formal control rights from the experience needed to use them.
Questions and answers
What temporary role did Richard describe?
Leading the company during the search for a replacement chief executive.
What was he illustrating?
The practical operating capability that can come with deep knowledge of an industry.