Over the next several issues of The Human Capital Advisor we will explore the nature of the Board/CEO/ED relationship from the perspective of both board members and the top executive. We'll offer input from several experts who will share their viewpoints, hopefully providing leaders with valuable "food for thought."
What Makes a Great CEO?
Our first topic will be what boards and investors (who ultimately sit on boards) look for in the top executive. Subsequent issues of The Advisor focus first on for-profit enterprises and finally on not-for-profits where the top person could be CEO or Executive Director.
As a CEO, Executive Director or a promising and rising senior executive, you should be clear on what scores highest on the list of traits most sought after in the top leader. Whether you are trying to sell your company, secure a job, grow into a CEO role or improve your relationship with your current board, it is critical that you understand the thinking of key decision makers.
Wisdom from the ProsHCA has picked the brains of several very experienced business leaders who collectively have hired or worked with scores of CEOs over their careers. They have accomplished this as board members, investors or business advisors.
Rather than present the standard checklist of CEO traits, we asked them to give us insights into their thinking and experience, traits that are nuanced and not necessarily related to experience or obvious leadership styles. This article is a summary of those insights.
What are Boards and Investors Looking for in a Top Leader?Rather than providing direct quotes, we are providing our guest contributors' "collective wisdom." There were some common themes in their thinking, for sure. - No Template - Each agreed there is no standard profile or schematic for a great CEO. They emphasized the importance of hiring for the specific situation at hand, that profile required is always "fuzzy," and that seeking the intangibles that separate the adequate from the great is extraordinarily difficult.
- Honesty and Integrity - Someone who gives the good news and the bad news. Boards want it straight and "unvarnished." There are "no straight lines" to growth. The board needs to know all the bumps and valleys confronted along the way to allow for early board intervention and so they can provide input and assess the effectiveness of strategy and implementation.
|
Can the CEO inspire highly talented people to join a small startup or struggling company?
|
- Knowing Resources Needed - Can the CEO anticipate, envision and understand what resources are required and how to effectively deploy them?
- Recruit Talented People - Here is a very sophisticated observation. Can the CEO inspire highly talented people to join a small startup or struggling company? Most would find this difficult. That said, hiring the right team is high on everyone's list.
- Humility - Knowing what you don't know and a willingness to admit being wrong.
- Servant Leader Think of yourself last. Think of team members first.
- Self-Awareness - Know others well. Know yourself best. One should have a very high dose of EQ.
- "Three Pillars" - Focus always on the business's competitive advantage. Fully commit to the importance of team. Be expert in hiring, developing and managing the team. Dive deep into and drive performance.
- Vision - Be able to "see around the corner" for 2-3 years. Understand competition, regulation, economy, emerging technology, other emerging trends and pull it all together into a cohesive strategic plan or plan adjustment. You want a "grounded visionary, not someone who dreams about 10 years in the future."
- Over Concern with Own Compensation - Beware of the CEO who is relentless and unreasonable in negotiating a deal and who is seemingly "in it for the paycheck." This might be a clue to a narcissistic personality, one that will be ill-equipped to lead effectively.
- Relentless quest for information - Ask great questions to get to the information you need and then build the trust so people open up to you.
|
You want a "grounded visionary, not someone who dreams about 10 years in the future."
|
|
Fit
The topic of fit came up often, from both the board and the CEO perspective. Getting the situational fit correct is a big part of the battle. There are so many elements to the fit. - The chair and the board, the senior management team and the organizational culture.
- The stage of the company's development - startup, build, hold or sell - change paths and culture or stay the course.
- The strategy alignment with the CEO's experience and interests.
- The core personality style required - degree of toughness, drive, change orientation.
One Final Word In conclusion, Joel Peterson, the chairman of JetBlue, shared his perspective in a recent article. Peterson spoke about the complexity of managing relationships with a range of constituencies, i.e., the board, investors/shareholders, senior management, employees and major customers, to name a few. These groups have their own interests and needs which are often conflicting. How effectively does the CEO "make the right trade-offs" often will greatly impact the short and long term success of the enterprise. At the end of the day, the CEO has to be a great juggler. When did you last see that experience in a CEO position description?
The Human Capital Advisor in our Archives.
|
|
|
TED BRUCCOLERI
Founder of Human Capital Advisors
Ted provides advisory services to CEOs and coaches senior executives.
JOHN HRASTAR
Leader of Executive Advisory Practice, HCA
John advises CEOs.
GUEST CONTRIBUTORS
*BOB FLANAGAN
is President of Clark Enterprises, Inc., a diversified investment company that concentrates its investment activities in real estate, construction, private equity/venture capital and financial markets. He has served on for-profit and not-for-profit boards.
*REID MILES is Founder of Miles Howland & Co., LLC, a global investment management and advisory firm. He has a long career in investment management and leadership. He has served on a number of boards.
*JOHN RICHARDSON is CEO of Fairfield-Maxwell, Ltd., a global shipping and energy enterprise, and former COO of Revolution. He has hired CEOs and served on boards.
ARTICLES OF THE MONTH
We recommend two articles this month: "Selecting CEOs with the Right Character Traits" at Tell us what human capital issues you'd like to read about in The Advisor. We welcome your ideas and comments on current articles and future topics.
Click below
|
|
 |
|
