So you want to be a CEO …

Following last month’s article about the role of a CEO there have been many responses from current incumbents and those who are aiming to achieve the position, asking for further thoughts. Once the possibilities, the purpose and vision for an enterprise are articulated, the CEO has to, with a key team, analyse how to communicate with, align and motivate the workforce around the explicit purpose and vision. To do this, employees have to agree these possibilities are realistic, and any concrete action plans to achieve these agreed specific goals can be achieved in the specified timeframe, with measurable key performance indicators to guide the journey. The challenge of declaring an abstract, uncertain future is clear; there is hardly ever enough solid proof to give certainty for the possibility. Yet the CEO has to stand by the purpose and vision, allocating resources to ensure bestchance of today’s situation becoming the future reality outlined in the vision; strategy for the now and for the future. Avoid being a CEO who focuses on immediate tactical issues and financial reengineering; tinkering with costs and structure rather than giving direction for growing current revenue streams and developing new revenue streams. It is very tangible to cutback on staff numbers, reduce overheads, skimp on overtime, reduce benefits where feasible, over-state inventories, buy back shares, restructure debt and change accounting principles to increase earnings and make the organisation look more valuable and profitable. While these strategies are viable and help increase efficiency for the short-term, they will ensure the future will be a faint copy of the same as today. On the other hand, those CEOs who are willing to declare possibilities and new purpose will continue to create opportunities where there were none. There is a distinction between possibilities and pipedreams. Too many people talk about doing something in the future but they are unwilling to take ownership, be responsible or accountable for this future; so make sure you walk the talk. The world of business is littered with those who have failed and a CEO has to be prepared to do this; fail quickly, fail cheaply and fail often. The owners and board have to be prepared to support the CEO through this and the CEO has to show agility, being prepared to learn lessons and shift future vision where and when necessary. The key resources for the CEO are not money, machinery and materials. Clearly without access to cash, or not having machinery fit for purpose and suffering from poor materials will hold the organisation back. Money, Machinery and Materials can be readily and easily copied by competitors. But the key resources for any CEO are first and foremost the company’s people, activities and processes they carry out, how well they conduct er in an aligned manner. The CEO must also encourage best use of time; both effective and efficient approaches by people within the company. Manpower and Womanpower, Methods and Minutes are the real differentiators, creating difficult-to-copy competitive advantages. There is a need to keep the owners and board members aligned; the CEO has to explicitly make time for all stakeholder groups. In my mind, the most important stakeholders are employees, not the owners and the board. Without the right people doing the right things at the right time at the right cost, the enterprise is just empty offices and buildings, dusty materials and rusty machinery. Business is messy and chaotic. Being the CEO means giving clarity to this mess and bringing your people along with you, ensuring you are giving them the chance to flourish.