The CEO Next Door

1. Decisiveness: Speed Over Precision in Leadership

"If you're not uncomfortable, then I am probably not learning or changing fast enough."

Make decisions faster. Successful CEOs stand out for their ability to make decisions with speed and conviction, even in uncertain conditions. They understand that a potentially bad decision is often better than a lack of direction. To improve decisiveness:

• Simplify complex issues by developing mental models specific to your industry and company
• Give stakeholders a voice in the decision-making process, but not necessarily a vote
• Make fewer decisions by empowering others and focusing on what truly matters
• Learn from every decision, good or bad, to continuously improve your decision-making skills

Look forward and inward. Gain distance from pressing decisions by imagining how you'll feel about them in 10 minutes, 10 months, and 10 years. Ensure you're physically and mentally prepared to make clear-headed decisions by getting enough rest and managing stress.

2. Engage for Impact: Orchestrating Stakeholders for Results

"Everyone is watching a chessboard, and each move you make speaks about who you are as a person, your values, your expectations, and how you care about and steward the work."

Lead with intent. Successful CEOs translate their vision and goals into commercial intent for every interaction. They align their aspirational intent (big-picture goals) with their transactional intent (goals for specific interactions).

Understand the players. Deploy perspective-getting to understand various stakeholders' unique needs and motivations. This involves:

• Actively seeking out diverse viewpoints
• Listening intently and asking probing questions
• Recognizing that empathy alone is not enough; gathering concrete information is key

Build routines to enlist stakeholders. Establish consistent communication practices:

• Repeat key messages seven times in seven different ways
• Break down the "sound barrier" around your office by proactively engaging with employees at all levels
• Spend significant time in the field, meeting with teams and customers

3. Relentless Reliability: The Key to CEO Success

"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

Discover the thrill of personal consistency. CEOs who are known for being reliable are fifteen times more likely to be high-performing. To build reliability:

• Operate with personal consistency in all interactions
• Take a mindset of radical accountability for your commitments and results
• Proactively shape expectations, especially in the first weeks of a new role
• Build a business management system to drive repeatable results

Set realistic expectations. Understand implicit expectations and communicate clearly about what can be delivered. Avoid overpromising and focus on consistently meeting or exceeding commitments.

Adopt the drills of highly reliable organizations:

• Make mistakes safe to report and learn from
• Level the playing field by empowering all employees to raise issues
• Create a precise shared vocabulary to speed up alignment and reduce errors
• Build consistent processes and routines to embed reliability into the organization

4. Adapt Boldly: Thriving in Uncertainty and Change

"Adapt or perish, now as ever, is today's inexorable imperative."

Let go of the past. Successful CEOs become experts at letting go of past strategies, business models, and personal habits that no longer serve the company's future. They:

• Actively seek out novelty and new experiences
• Weigh job opportunities by their learning potential, not just pay grade
• Acquire new skills, even if it means stepping out of their comfort zone
• Are willing to let go of approaches that have worked before

Build an antenna for the future. CEOs who adapt boldly:

• Build diverse information networks beyond their industry
• Use the power of questions to uncover new insights
• Conduct "premortems" to anticipate potential failures and successes
• Look into the crystal ball of customer experience to spot trends and opportunities

Beware cognitive overload. Protect yourself from information overwhelm by:

• Developing data dashboards that focus on what matters most
• Insulating yourself from constant distractions to maintain focus on strategic priorities

5. Career Catapults: Accelerating Your Path to the Top

"You've spent your whole life preparing for this. There's joy, and fear, doubt, and hope, all wrapped together."

Understand the career stages. The path to CEO typically involves three stages:

1. Go broad (years 0-8): Build a wide breadth of skills and experiences
2. Go deep (years 9-16): Demonstrate measurable results in general management roles
3. Go high (years 17-24): Become an enterprise leader, impacting the entire company

Deploy Career Catapults:

• The Big Leap: Take on roles that are a significant stretch from your current experience
• The Big Mess: Lead through a crisis or turnaround situation
• Go Small to Go Big: Take on smaller roles or start new initiatives to gain valuable experience

Own your blowups. Career setbacks are common, but how you handle them matters:

• Take ownership of mistakes and failures
• Extract lessons learned and demonstrate how you've evolved as a leader
• Use blowups as opportunities for growth and learning

6. Standing Out: Getting Noticed for Leadership Potential

"Death will be a great relief. No more interviews."

Visibility with the right people:

• Pick your boss wisely and invest in that relationship
• Build a tribe of supporters and sponsors throughout your career
• Create a "bonfire" of relationships in areas critical to your success

Visibility in the right way:

• Ask for what you want; proactively seek new responsibilities and opportunities
• Rock the boat for the sake of business results, not personal gain
• Look and speak the part of an executive, even before you have the title

The Yelp Effect: Be aware that your reputation builds quickly in the age of social media:

• Treat everyone with respect, regardless of their status
• Avoid disrespectful or annoying behaviors, even in small ways
• Be mindful of your online presence and social media footprint

7. Mastering the CEO Interview and Selection Process

"You get fired on results but hired on perception."

Become the Happy Warrior. Exude confidence, competence, and comfortable positive energy during interviews. Show that you love solving the problems the company faces and are eager to take on the challenge.

Use safety of language:

• Avoid elevated or pretentious language; use down-to-earth storytelling
• Balance the use of "we" and "I" to show both team orientation and individual contribution
• Address blowups productively, demonstrating what you've learned and how you've changed

Make your message memorable and relevant:

• Use meaningful numbers to quantify your achievements
• Share vivid stories and bona fides that showcase your experience
• Practice your "bookends" - the first and last minutes of your interview

Set the agenda. Enter the interview knowing what you want them to take away about you. Have a clear list of talking points that demonstrate your fit for the role and vision for the company.

8. Navigating the Hidden Hazards of the CEO Role

"Under pressure, you do not rise to the occasion; you sink to your level of training."

The Ghouls in the Supply Closet: In your first months as CEO, thoroughly assess the state of the business and uncover any hidden issues or "skeletons in the closet."

Entering Warp Speed: Learn to manage the dramatic increase in demands on your time and attention:

• Shift your focus to more long-term thinking
• Delegate control of your calendar
• Learn to say no to non-essential commitments

Amplification and the Permanent Spotlight: Recognize that as CEO, your every action and word carries tremendous weight:

• Manage your body language and emotions carefully
• Use small gestures to send big signals throughout the organization

It's a Smartphone, Not a Calculator: Utilize all the levers available to a CEO:

• Shape company culture intentionally
• Develop financial strategy beyond just managing the P&L
• Engage in corporate diplomacy to influence the broader business ecosystem

The C-Suite is a Psychological Thunder Dome: Prepare for the psychological challenges of the role:

• Create winning routines to stay grounded
• Protect against "identity theft" by maintaining interests outside of work
• Find confidants and advisors outside the company

9. Building and Leading Your Executive Team

"Ninety percent of CEO leadership is behavior modification."

Give a powerful inaugural address. Set the tone for your leadership by clearly communicating:

• Your assessment of the company's current state
• Your vision for the future
• Your values and expectations
• A call to action for the organization

Avoid "safe" people bets. Don't fall into these common traps:

• Maintaining the status quo out of fear
• Favoring pedigree over relevant track record
• Acquiescing to the board's recommendations without due diligence
• Over-relying on people who helped you get the job
• Hiring people who are too similar to you
• Avoiding talented individuals who might become "competition"

Draft the right team quickly:

• Develop a written people plan aligned with your vision and strategy
• Identify which roles require true "star" talent
• Minimize personnel "projects" that drain your time and energy
• Set a higher bar for what "great" looks like in each role

Build your new language of leadership. Develop a repertoire of small gestures and actions that send big signals about your priorities and expectations.

10. Effective Board Management for CEOs

"He is pulling the load of an ox and walking on eggshells."

Understand board dynamics. Identify the power players and different archetypes on your board:

• The Engaged Partner
• The Quiet Expert
• The Rubber Stamper
• The Micromanager
• The CEO-in-waiting
• The Activist

Build relationships proactively. Invest 10-20% of your time in board management:

• Meet one-on-one with board members to understand their motivations and concerns
• Ask probing questions to gain insight into their perspectives
• Demonstrate that you value their input and expertise

Communicate effectively. Go beyond simply reporting results:

• Provide context and strategic insight along with performance data
• Be transparent about challenges and your plan to address them
• Seek the board's counsel on specific issues where their expertise can add value

Manage expectations. Set clear goals and regularly update the board on progress:

• Align on short-term and long-term objectives
• Provide regular updates between formal board meetings
• Be proactive in addressing potential concerns or issues

By mastering these key aspects of CEO leadership, you'll be well-equipped to navigate the challenges of the role and drive your organization to success.

Last updated: September 8, 2024