Kaplan, Klebanov and Sørensen analyzed detailed assessments of CEO candidates for private equity portfolio companies and found candidates vary along two broad dimensions: general ability, and a contrast between execution skills and interpersonal skills. Subsequent company performance lined up with ability and execution, the fast, aggressive, persistent, efficient profile, rather than with the likable, team-oriented profile alone.
The Institute’s reading: buyers systematically over-weight rapport, and every seller’s management team includes someone charming. This paper says to interview for evidence of execution, decisions made, standards enforced, things actually finished, and to treat charm as pleasant noise. It is the academic backbone for structured management diligence, and the reason the scenario library’s management questions read the way they do.