CEO Excellence

1. Set a bold vision and make big strategic moves early and often

Boldness has genius, power, and magic in it.

Reframe the game. The best CEOs don't just raise aspiration levels; they change the definition of success. They look for intersections between market needs, company capabilities, and passion to create a compelling vision that goes beyond making money. This vision should inspire employees and provide a north star for decision-making.

Make big moves courageously. Research shows that CEOs who make multiple big strategic moves early in their tenure significantly outperform others. These moves typically include:

• Mergers, acquisitions, and divestitures
• Significant capital expenditures
• Productivity improvements
• Business model innovations
• Major resource reallocations

The best CEOs combine a clear long-term vision with the courage to make bold short-term moves, even in the face of uncertainty. They maintain conviction by being exceptional futurists, understanding risk-reward trade-offs, and acting like owners of the business.

2. Treat organizational culture and structure as critical business priorities

Culture is coded wisdom.

Find the "one thing" culturally. Rather than trying to change everything, excellent CEOs focus on the single most important cultural shift that will drive performance. They reshape the work environment to support this shift through role modeling, formal mechanisms, storytelling, and skill-building.

Design for "stagility". The best CEOs create organizational structures that balance stability and agility. They:

• Define clear accountabilities to avoid matrix-induced gridlock
• Connect the dots between silos and decision-making bodies
• Empower agile teams to drive innovation while maintaining a stable core
• Match talent to value-creating roles, not just hierarchical positions

By treating culture and structure as mission-critical priorities, top CEOs align their organizations to execute on strategy and adapt to change.

3. Build a high-performing leadership team focused on collaboration

Teamwork makes the dream work, but vision becomes a nightmare when the leader has a big dream and a bad team.

Create an ecosystem. Excellent CEOs carefully compose their leadership teams for complementary skills and diverse perspectives. They act fast but fairly when someone isn't the right fit, balancing consistency of character with adapting their leadership approach as needed.

Make the team the star. The best CEOs foster genuine teamwork by:

• Ensuring the team focuses on work only it can do collectively
• Establishing "first team" mindsets and behaviors
• Combining data, dialogue, and speed in decision-making
• Investing in team-building and feedback mechanisms

They also create a disciplined operating rhythm with the right cadence of meetings and reviews. By solving for team psychology first, excellent CEOs unlock higher performance across the organization.

4. Partner with the board to drive business success

Money is the currency of transactions. Trust is the currency of interactions.

Build a foundation of trust. The best CEOs proactively build strong relationships with board members, especially the chair, through radical transparency and consistent delivery on commitments. They reach out to individual directors to understand their perspectives and tap their expertise.

Help directors help the business. Excellent CEOs go beyond fulfilling fiduciary duties to actively engage the board as strategic partners. They:

• Clearly delineate board and management roles
• Educate directors on the business and industry trends
• Expose the board to key leaders and talent
• Encourage board renewal and diversity of skills

By focusing board meetings on forward-looking topics and balancing oversight with insight, top CEOs leverage their boards as a powerful asset for the company.

5. Engage stakeholders by understanding their motivations and creating shared value

There's no harm in hoping for the best as long as you're prepared for the worst.

Start with "why?". The best CEOs deeply understand the motivations of each stakeholder group. They maintain a consistent narrative across constituencies while tailoring engagement approaches. They also look for opportunities to create shared value that benefits multiple groups simultaneously.

Shape strong relationships. Excellent CEOs:

• Contain time spent externally to ~30% through disciplined prioritization
• Harvest new ideas from every interaction
• Prepare thoroughly for crises through regular stress-testing
• Show personal resilience in the face of criticism and setbacks

By proactively engaging diverse stakeholders and deftly handling crises, top CEOs build credibility and support for their agendas.

6. Lead with purpose and make a positive societal impact

Definiteness of purpose is the starting point of all achievement.

Clarify your company's societal "why?". The best CEOs articulate how their company makes a positive impact beyond shareholder returns. They embed this purpose into core operations rather than treating it as a side initiative.

Use strengths to make a difference. Excellent CEOs:

• Leverage company capabilities to address environmental and social issues
• Set ambitious sustainability targets linked to the business model
• Take stands on societal issues when warranted, guided by company values
• Create mechanisms for employees to contribute their skills to worthy causes

By authentically pursuing a higher purpose, top CEOs inspire their organizations, attract talent and customers, and future-proof their businesses.

7. Develop personal discipline and humility to sustain long-term success

Doing is never enough if you neglect being.

Manage time and energy. The best CEOs treat the job as a series of sprints rather than a marathon. They:

• Keep a "tight but loose" schedule with time for reflection
• Compartmentalize to be fully present in each interaction
• Build in recovery periods to avoid burnout
• Tailor their support staff to enable peak performance

Live your "to-be" list. Excellent CEOs focus not just on what they do, but on who they are as leaders. They:

• Act consistently with their values and strengths
• Adapt their leadership style to what the company needs
• Embrace feedback and continuous personal growth
• Provide hope and confidence even in difficult times

Stay humble. The best CEOs maintain perspective through practices like:

• Never making it about themselves
• Embracing servant leadership
• Creating a diverse "kitchen cabinet" of advisors
• Displaying genuine gratitude for the opportunity to lead

By mastering personal effectiveness, top CEOs sustain their impact over the long haul.

8. Master all aspects of the CEO role to drive exceptional performance

Your big picture will never be a masterpiece if you ignore the tiny brush strokes.

Be a corporate decathlete. The CEO role requires excellence across multiple dimensions:

• Setting direction
• Aligning the organization
• Mobilizing leaders
• Engaging the board
• Connecting with stakeholders
• Managing personal effectiveness

While CEOs may have signature strengths, the best perform at a high level across all areas.

Evolve your approach. Top CEOs adapt their focus and tactics as the business situation changes and their capabilities grow. They maintain core principles while flexing their style to meet new challenges.

Filter signal from noise. As the pace of change accelerates, excellent CEOs distinguish between enduring truths about leadership and fleeting trends. They anticipate how their role may evolve to become more:

• Ethically accountable
• Diverse and inclusive
• Resilient to pressure
• Impactful on broader society

By mastering the full spectrum of CEO responsibilities and continually growing in the role, the best leaders drive sustained, exceptional performance.

Last updated: October 3, 2024