How do you hire a good CEO?

I am assuming your question is more pertaining to empowering and motivating (rather than hiring). I can outline some of the practices I have seen really result in high motivation and sense of ownership among engineering teams: * Empathize - Your engineering team will work well and be more motivated if they see you as one of them rather than a person who doesn't understand their function. Show your geeky side to them, and show that you understand their thought process and drivers. * Pick their brain on big and small decisions (roadmap, usability, whatever it is) - Product teams value being heard. The more you position yourself as someone who is WANTS to listen, is keen to have their inputs, you will be surprised at how involved they can get, and also how you can actually tap into a lot of smart ideas/thoughts from them that you can develop on. * Take care to explain - show how you arrive at decisions. Share your research, competitive analysis, and even your thought process on arriving at a feature set or list of things for a release. Its stuff you would have worked on anyway - so no harm sharing with more eyes! * Share customer feedback - nothing motivates your engineers than a positive interaction with a customer. Get them to see customer feedback. Have them sit in and observe some of the usability studies. (B2B - have them see you do some demos or do a successful sales pitch) * Send out interesting articles, insights, business and tech articles with your comments/highlights to them on a regular basis (maybe twice a week?) - maybe even some analysis you did on competition or customer feedback * Engineers like working with people they feel are competent and complement the work they are doing to build a great product. So make sure they see how everyone else around them is also doing a good job and adding value and contributing to the success of the product. * Be transparent about the product/business - Make them feel they are responsible and involved in the business, not just technology. I've seen engineering teams happy about their annual goals having components relating to making revenues, keeping customers happy, or reducing costs. If they are enthused about the business as a whole, they will be more motivated with their engineering efforts * Have a mix of little experiments, R&D, attending to engineering debt, in addition to bug fixes and new features that each engineer gets to spend some time on (based on their interest) * Finally get to know each of your engineers personally, and be aware of what their priorities are. Each of us has different motivations in life, so there is no silver bullet to motivate people. When they know you care for them, they are more motivated :).

Some of this is stage dependent and all of it is highly dependent on the team above the product manager. The simplest answer of course is to find PM's from companies who have had exemplary success where the Product Manager candidate either led prior success or was exposed to it in a meaningful way. A simple starting point is to ask them to give you examples of conflicting opinions on a feature and how they evaluated the conflicting opinions and made a decision and tracked the success or failure of that decision. AirBnb actually gives PM's homework as part of the interview process where they have to actually present a unique idea (from scratch) to the interviewing team. Happy to talk to you about best process based on your stage and existing team.

I would be curious to know why you feel it is important to use personality testing. I have hired over 20 sales reps and I have never used any testing. I have conversations with my hires because that is going to tell me more about their personality any day than a test. Plus you might eliminate someone because of a test score that could be a great fit for your organization. I have a pretty strong process for hiring sales people and could share with you my steps and even the questions if you would like.

Growing up from 1+subs to a team like you're saying is a classic problem in consulting. The financial math is not in your favor until you get a consistent team. Here's an article of mine detailing the issues and also detailing solutions: http://blog.asmartbear.com/consulting-company-accounting.html Having said that, I would also say you're trying to do too many things at once with not enough resources, which means the chance of being successful with each one is diminished. For example, you could focus on consulting revenue so you can build up your bench, so that you truly can self-fund the development of a product without distraction. Or you could focus on product, investing time/money there with consulting only to pay for that, even using subs for that, until the revenue there gets to the point that it's scaling (which will be hard, as you can already see). Building a product or a successful consultancy is individually very hard -- most fail. So trying to do both at the same time means you'll almost certainly fail. Which is a shame, because that's "failure due to time-management / strategy" as opposed to actual market forces. i.e. something fixable! I hope some of this helps, although I agree with you that talking through the details would probably be more helpful. The specific details of your situation matter.

For the first 90 days, listen and plan - but don't do anything. You need to understand why they are under performing and 9/10 it's because the previous Manager was just not a good Manager, could not recognize people's strength's, had them in the wrong roles, tried to do their jobs etc etc Read "First break all the Rules" - get to know your team, get to understand their strengths, get people in the right roles (plan a change if reqd) and then your focus after that is break down the barriers that stop your team being successful and get out of their way. “Now, discover your strengths!” that Swier suggests is also a marvellous book\resource to help you in this task. You are in a very fortunate position - there is nothing more rewarding than turning this situation around and there is only one way to go.... up... and that will get you noticed. It is much harder to take over a high performing team and either keep that going or further improve on it, as it's very unlikely you'll get the chance to really meet the previous Manager and understand why they had success and that team's loyalty will be with the previous Manager - this team will be looking for someone to lead, guide them and help them be successful as no-one goes to work wanting to under perform. Show and help them to achieve that and they will do and achieve remarkable things and you will be so proud of them as you watch them develop, achieve, grow in confidence and keep going. So, give thanks for having landed such a great career opportunity and go enjoy it.