Are You the New CEO in a New Year?

The New Year may see many large or small organisations led by new CEOs. In the U.S., one-third of all CEOs chosen to guide companies are gone within three years of appointment. Getting a good start is essential and much has been written regarding the first 100 days.

McKinsey’s Kevin P. Coyne and Bobby S. Y. Rao interviewed 15 current and former CEOs of U.S. companies about choices and lost opportunities. These CEOs led companies with annual sales of USD1 billion to more than USD25 billion. What Coyne and Rao gleaned include:

(i)        Seize the day – the period between designation and ascension is critical to make the difference;

(ii)       Attack areas of weakness – overcome personal areas of weakness through re-training, consultation with industry experts, hire a private coach or simply follow the retiring CEO on a tour of field operations;

(iii)      Know the Board – each member of the Board is important and a personal touch and understanding them early is useful;

(iv)       Have a narrative before Day One – people may be impatient to know your long-term strategy for the company on the first day of work! Project confidence that the new leadership can address issues;

(v)        Get help for unpleasant tasks – policy changes, removing problem executives could be unpleasant and getting independent outside help is useful;

(vi)       Find a confidant – external business associates, a Board member or a professional coach could fill that role; and

(vii)      Beware of civic duties – many “new” causes of a social or community nature may arise – but postpone any  commitment until you get your bearings right.

What about job focus? Well it depends on the circumstances but these five were listed by Roger L. Martin:

(i)         Revenue Growth – grow the revenue pie;

(ii)        Follow processes/procedures;

(iii)       Consult your team where necessary;

(iv)       Set high strategy standards; and

(v)        Encourage diversity – people with different backgrounds, qualifications, experience add value to the company. Monoculture or a one race mentality is usually a recipe for disaster!

So if you are called to lead an organisation and find yourself thrust into a hugely challenging role, remember you don’t have to be the one in three failures! Good Luck!

References:

1.  A Guide for the CEO-elect, Kevin P. Coyne and Bobby S. Y. Rao, McKinsey Quarterly (Aug 2005)

2.  The Five Rules Every New CEO Should Follow, Roger L. Martin, Harvard Business Review