HBR's 10 Must Reads 2020

1. CEOs face an acute scarcity of time, requiring strategic allocation

There is never enough time to do everything that a CEO is responsible for.

Time as a critical resource. CEOs are confronted with an overwhelming array of responsibilities, from functional and business unit agendas to engaging with multiple organizational levels and external constituencies. The sheer scope of managerial work is vast, encompassing shareholders, customers, employees, board members, media, government, and community organizations.

Strategic time allocation. To manage this scarcity, CEOs must be deliberate in how they allocate their time. This involves:

• Prioritizing activities that align with the company's strategic goals
• Delegating tasks that can be handled by others
• Focusing on high-impact activities where the CEO's personal involvement is crucial
• Regularly reviewing and adjusting time allocation to ensure it reflects current priorities

2. Successful CEOs balance work and personal time for sustained effectiveness

To sustain the intensity of the job, CEOs need to train—just as elite athletes do.

Work-life integration. CEOs in the study worked an average of 62.5 hours per week, including time on weekends and vacations. However, successful CEOs recognize the importance of personal time for sustained performance.

Key elements of balance:

• Sleep: CEOs averaged 6.9 hours per night
• Exercise: About 45 minutes daily
• Family time: Approximately 3 hours daily
• Personal pursuits: 2.1 hours daily for hobbies, reading, or relaxation

Maintaining this balance helps CEOs stay grounded, engaged, and better able to handle the demands of their role. It also sets an example for the rest of the organization about the importance of work-life balance.

3. Face-to-face interactions are crucial for CEO influence and leadership

Face-to-face interaction is the best way for CEOs to exercise influence, learn what's really going on, and delegate to move forward the multiple agendas that must be advanced.

Power of personal presence. CEOs in the study spent 61% of their work time in face-to-face interactions. This high percentage reflects the unique value of direct, personal engagement in leadership.

Benefits of face-to-face interactions:

• Building trust and relationships
• Gathering unfiltered information about the organization
• Effectively communicating vision and strategy
• Demonstrating accessibility and engagement
• Coaching and developing key talent

While technology offers many communication options, CEOs must prioritize in-person interactions to maximize their influence and effectiveness.

4. Effective CEOs are agenda-driven, balancing proactive planning with reactive management

An explicit agenda is one of the CEO's most important tools for making progress on multiple work streams simultaneously, addressing differences in the rate of progress across priorities, and using time effectively despite the need to respond personally to unforeseen events.

Strategic agenda-setting. Successful CEOs have a clear, explicit agenda that guides their time allocation and priorities. This agenda should be regularly updated to reflect current circumstances and communicated to key stakeholders.

Balancing proactive and reactive work:

• Proactive: 43% of time spent on agenda-driven activities
• Reactive: 36% of time responding to unfolding issues

CEOs must be prepared to handle unexpected crises while maintaining focus on their strategic priorities. This requires flexibility and the ability to quickly assess and respond to emerging situations without losing sight of long-term goals.

5. Direct reports are essential for CEO leverage and organizational success

The more CEOs can delegate to their leadership team, the better they generally feel about their use of time.

Leveraging the leadership team. CEOs spent 46% of their time with internal constituencies interacting with one or more direct reports. This high percentage reflects the critical role of the senior leadership team in extending the CEO's reach and effectiveness.

Key aspects of working with direct reports:

• Delegating key responsibilities and decision-making
• Regular check-ins and reviews
• Developing and mentoring future leaders
• Ensuring alignment on strategic priorities
• Leveraging diverse expertise and perspectives

Effective CEOs invest in building a strong, capable leadership team that can handle significant responsibilities, allowing the CEO to focus on high-level strategy and critical issues.

6. CEOs must manage using broad integrating mechanisms to align the organization

Effective CEOs put in place well-designed structures and processes that help everyone else in the organization make good choices.

Organizational alignment tools. CEOs use various mechanisms to ensure the entire organization is working cohesively towards common goals. These include:

• Strategy development and communication (21% of work time)
• Functional and business unit reviews (25% of work time)
• People development and relationship building (25% of work time)
• Organizational structure and culture alignment (16% of work time)
• Mergers and acquisitions (4% of work time)

By focusing on these integrating mechanisms, CEOs can create a framework that guides decision-making throughout the organization, reducing the need for constant direct intervention.

7. Meetings dominate CEO schedules, necessitating efficient management

CEOs attend an endless stream of meetings, each of which can be totally different from the one before and the one that follows.

Meeting management. CEOs in the study spent 72% of their total work time in meetings, averaging 37 meetings per week. Given this significant time investment, effective meeting management is crucial.

Strategies for optimizing meetings:

• Critically evaluate the necessity of each meeting
• Reduce standard meeting lengths (e.g., from 60 to 30 minutes)
• Ensure clear agendas and preparation by attendees
• Balance one-on-one (42% of meetings) and small group (21% of meetings) interactions
• Allow time for spontaneity and accessibility (25% of work time)
• Protect uninterrupted alone time for reflection and preparation

Efficient meeting practices can significantly enhance a CEO's productivity and effectiveness.

8. External constituencies demand significant CEO attention and balancing

External constituencies can be just as demanding as internal ones.

Managing external relationships. CEOs spent 30% of their time on average dealing with external constituencies, including business partners, board members, and other outside commitments.

Key external engagement areas:

• Customers: 3% of time (often considered too low by CEOs)
• Investors: 3% of time (balanced to avoid over-focus on stock price)
• Board of Directors: 5% of time (building relationships beyond formal meetings)
• Community and philanthropic activities: 2% of time (carefully restricted)

Effective CEOs must strategically allocate time to external relationships, ensuring they maintain critical connections without neglecting internal responsibilities.

9. CEOs must navigate six dimensions of influence simultaneously

In managing across these six dimensions of influence, it is easy for CEOs to overlook the less direct, less top-down, less tangible, and more human aspects of their work.

Multidimensional leadership. CEOs must balance six key dimensions of influence:

1. Direct vs. Indirect influence
2. Internal vs. External focus
3. Proactive vs. Reactive approaches
4. Leveraging power vs. Navigating constraints
5. Tangible vs. Symbolic actions
6. Formal power vs. Legitimacy and trust

Successfully managing these dimensions requires a nuanced understanding of leadership and the ability to adapt approaches based on the situation and audience.

10. Time allocation reflects a CEO's leadership style and priorities

A CEO's schedule (indeed, any leader's schedule), then, is a manifestation of how the leader leads and sends powerful messages to the rest of the organization.

Time as a leadership tool. How CEOs allocate their time signals priorities, values, and leadership style to the entire organization. This allocation should be intentional and aligned with the company's strategic goals.

Key considerations in time allocation:

• Balancing short-term operations with long-term strategy
• Demonstrating commitment to key initiatives through personal involvement
• Modeling desired behaviors and cultural values
• Ensuring accessibility to different levels of the organization
• Adapting allocation based on the company's current challenges and opportunities

By consciously managing their time, CEOs can reinforce their vision and priorities throughout the organization.

Last updated: October 8, 2024