A four-part test is proposed to determine if a newly hired VP is effective: they should hire great talent within 60 days, improve their key metric, take some responsibilities off the founder's plate, and gain team confidence. This matters because it helps founders quickly assess whether the new VP is making a positive impact on the startup’s growth and operations. If these criteria are not met, startups risk facing significant setbacks if they do not address underperformance promptly.
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