In business, leaders are often reluctant to share stories of failures. However, like everywhere else, the most valuable lessons usually emerge from acknowledging and dissecting what went wrong. At Concentric, the security firm where I serve as Executive Chair, a few years ago we had a difficult experience that grew from a failure. We hired the wrong person into our top leadership position, and it cost us. While it was painful, we learned an enormous amount.

Hiring at all levels is important, and in all cases, a bad hire costs time, effort, and therefore money. In most cases, the damage – to the budget and to company culture – done by a bad hire can be limited by a quick reaction; if you can recognize and remove the person quickly, you can minimize damage done. But when you hire a CEO, the stakes are much higher and the process of recognizing and correcting the mistake can take much longer. This is our story.