The Blackstone Edge

90 DAYS. DOZENS OF INTERVIEWS. BILLIONS ON THE LINE. HOW BLACKSTONE'S CEO-MAKER GETS THE JOB DONE.

- RUTH UMOH

THE CEO candidate seemed like a perfect fit. Blackstone, the private equity titan, had acquired a real estate company and was searching for the ideal leader to helm it. The candidate had excelled as a senior executive at another Blackstone-owned real estate company and had greatly impressed interviewers on the CEO search committee.

But soon after he was hired to the new position, problems began to surface. The role required a chief executive who had a strong grasp of the local market, relationships with regional policymakers, and expertise in managing regulatory affairs-areas where his experience was limited. Within six months, it was clear that the CEO was struggling.

The company had fallen significantly behind on its growth plan and failed to meet key financial milestones. Blackstone initially attempted to hire its way out of the problem, adding a chief transformation officer, an executive to restructure costs, and a more active advisory board chair. The CEO was also given feedback and coaching. But despite those efforts, his tenure lasted only two years.

"If we had simply stepped back and asked ourselves, 'What do we uniquely need this CEO to do to get us where we need to be?' we would have realized he wasn't the right fit," admits Courtney della Cava, Blackstone's senior managing director and global head of portfolio talent and organizational performance. "Instead, we became enamored with his past success-and it set us back." It was a costly error, but one that Della Cava says highlights the importance of Blackstone's current approach to hiring CEOs for the 250 companies in its portfolio.