However, if you need to bring someone in from the outside to fill a senior leadership position, you should do this only once every six to nine months. It takes this length of time to find the right person, get him comfortable in the position, and transfer the DNA of the

organization into his psyche. In turn, the new executive will need this amount of time to positively impact the organization enough to pay back his salary.

CEOs often avoid these decisions because they involve executives who have become dear friends. We recognize that this is a touchy subject, but it must be faced if the organization is to grow. One option is for some of the early team members to help launch a new product or division. They are usually more comfortable in a start-up situation or working on a smaller team. And several of the early leaders might be relieved to have the burden of an increasingly important and complex function taken off their shoulders. You won’t know until you have these crucial conversations.

Our pet peeve is when a company’s leaders think it should grow regardless of profit. This is just reckless, unless you’re a venture-backed firm pioneering new territory. For everyone else, we recommend getting profitable with the work you have, proving you can get to 15% profitability (based on our adjusted Simple Numbers), adding labor to knock profit back

to 10%, and then growing to 15% again. Lather, rinse, and repeat.

And while some of the specific do’s and don'ts for CEOs are unique to their role, most essential things like setting expectations, developing a vision, establishing a management process, creating priorities, building your management team, and doing an exceptional job on your earliest projects apply equally to anyone in a new leadership role.

When Ron Daniel was the managing partner of McKinsey & Company from 1976 to 1988, he sent a memo to new recruits when they started, entitled, “On Becoming an Associate.” His advice is still memorable all these years later: “Recognize the necessity of getting off to a good start in the firm. Your first few engagements are critical. During these studies, you can establish an internal clientele for yourself - that is, by performing in an outstanding way, your reputation will be quickly established in your office and even the firm.” (We’ve incorporated Ron’s memo in the Appendix of the book.)

This is especially important because whenever you assume a new role, you’re in what Max DePree, former CEO of furniture company Herman Miller and author of Leadership Is an Art, calls “a temporary state of incompetence.” Even if you think you know a company - or a department or a division - before you take over its leadership, think again. As GE’s Immelt reminisces, “I worked for this place for twenty-one years before I got the CEO job and there were still things that shocked me when I took over.”

The knowledge gap is even wider for outsiders. “Anyone coming into a new situation is faced with the fact that they often have to do the most at a point they know the least. You may have previous experience and you may be smart and have insight into how things work, but you know the least about the actual company you’re engaged in at the same time you have to set things in motion,” says AOL chairman and CEO Jonathan F. Miller, himself recruited into the company from the outside.

If time is tight, as in the case of a turnaround, you can save a little time by focusing on gaining the buy-in of key influencers. Not all of those key influencers may be a part of your immediate management team; there may be other people within the organization who act as gatekeepers or sounding boards or who perform other roles that affect the way the team operates. Ask others who the key influencers are within the company; patterns will emerge after as few as five conversations. Then concentrate your efforts on them for maximum gain on your own time and energy.