Leadership from N2Growth
Being a Great CEO
We’ve all witnessed the CEO who tries to do too much. Most of us have also observed the chief executive, who works in stealth mode and accomplishes very little. We’ve gladly followed the bright, affable and charismatic CEOs and rebelled against
the arrogant and self-indulgent ones who do little more than pontificate about
their legendary prowess. So what makes a great CEO?
No single position within the corporate hierarchy receives the unrelenting scrutiny
(public and private) that a CEO must deal with. The pressure is intense, the
risks are high and the rewards can be tremendous for those who possess the
requisite leadership skills and character to hold the title of chief executive.
Many CEOs initially rise to their position based upon leveraging a particular
skill set. However, a single strength will rarely be enough to keep a CEO in
the corner office for long. Those CEOs who remain in the position long-term
do so because they have broadened and deepened their skill sets and competencies while
understanding the priorities of the job.
Believe it or not, the biggest challenge a CEO faces is gaining a true understanding
of the job. While the job of a CEO is really a very simple one, it
also happens to be far from easy. The fact of the matter is that a CEO
is responsible for everything. He or she is ultimately held accountable for
the success or failure of the company and must assume responsibility for operations,
finance, sales, marketing, PR, technology, HR strategy, vision, culture, etc.
The proverbial buck stops with the CEO. Therein lies the problem and
the greatest challenge: How can on person possibly do it all? The reality is
he can’t, but you’d be surprised at how many CEOs try.
The key to becoming a great CEO is understanding the difference between duties and responsibilities. The CEO’s duties are the activities he or she actually performs--responsibilities that don’t get delegated to others. The CEO must take on certain mission critical duties. Here are what I believe are the critical duties that a CEO must carry out:
- Becoming a true leader: While respect can sometimes be commanded, the strongest and most enduring respect is earned. It is not only through success that confidence is instilled in the troops, but also in doing things properly regardless of the outcome. Management and staff will work through failures alongside leaders who possess integrity and character and will resent and mock the success of ill-gotten gains. In addition to being productive and effective, great leaders understand the value in remaining approachable and human. Communication and conflict-resolution skills need to be developed to their maximum.
- Setting the tone: A CEO’s primary function is to set the vision, mission and strategy for the company. Executives, management and staff will be responsible for setting the goals, determining the tactics, choosing toolsets and managing the processes. It is the clarity of the CEO’s vision that instills purpose, which in turn creates the passion that will drive focus and productivity. These traits will create a positive culture, which is crucial for long-term success. Each and every action or inaction on the part of the CEO makes a cultural statement. Because the work of the corporation is performed by people and people are profoundly impacted by culture the CEO must insure a healthy, safe and positive culture.
- Focus on Team Building: A CEO who abdicates control of key personnel is taking on huge risks. The CEO must recruit, deploy, mentor and retain the executive team. These individuals, in turn, will lead the organization. An alignment of vision, mission and strategy between the CEO and the executive team is crucial for creating a healthy and sustainable enterprise. If the executives are not functioning smoothly this is a reflection of poor leadership and team building skills on the part of the CEO.
- Understand Resource Allocation: Great CEOs insure that the best talent is applied toward the best opportunities. Moreover the CEO needs to insure that the proper financial and non-financial resources are applied appropriately across the enterprise. While not all CEOs possess strong finance backgrounds they are still ultimately responsible for the financial decisions that can determine the company’s fate.
- Become the brand champion: A good CEO is the public face of the company. CEOs need to champion the brand internally and evangelize the corporate brand externally. CEOs that don’t work the media, key partners, and capital sources are not doing their job. If the CEO is not intimately familiar with what it takes to increase brand equity then it is only a matter of time until the company will see a brand in decline
As I mentioned above, a CEO’s job is rather simple but not easy. You don’t have to do all things. Just focus on the right priorities with the proper talent and resources and your enterprise will prosper.
N2growth, a Portland, Ore.-based strategy and consulting firm, helps small businesses grow their talent, revenue and brand equity. Click here for more information.
