August 2, 2007 22 Comments

Think Like a CEO

Strong organizations require good leaders. Weak organizations need even better leaders. What strikes me most about working with a CEO is how they see the business versus how people down in the trenches see the business. UNDERSTANDING how a good chief executive processes the world strikes me as a very useful skill to conducting your own business.

Now, you may not work directly with a CEO. I didn’t at my last job. Maybe those of us who have, as well as CEOs in our midst, can share how they see the world for this post. And for those of use who AREN’T a CEO, think about these things and apply it to your role, either asking how you might think like a CEO at your level, and/or how you might better conduct yourself to make business easier for YOUR top executives.

Business Motivations

While we might be arguing over what the best technology is to solve a problem, the CEO is thinking, “How much energy and cost is being spent here versus the return?” It sounds cold and crass, but it also stops a whole lot of “religion” battles. CEOs seek to do things for the best ends to their customers, their stakeholders (anyone with an interest in the business), and to their staff. Great CEOs balance these three concerns well.

Listen and Absorb

I’ve noticed that the best CEOs listen. They absorb the landscape of any meeting. They take in the thoughts and opinions of their constituencies. And just when a meeting seems to be going off into the weeds, a good CEO will raise her hand, nod knowingly, and say something very focusing. But the listening and understanding is there in a great CEO.

Plan Higher

Executives want every project to succeed, but they are focused on partnerships, deals, acquisitions, and financial strategies. It is utterly different from what makes up most of our days. When I worked for my last organization, I’d be sweating over a software deployment that would fix a major telecommunications problem, hearing at the same time that the customer was trying to get out of their contract with us. Our CEO would fly down with a senior team, and would never once mention the little details of our project. He would focus on the relationship, the partnerships, the potential new revenue streams he could bring our customers. The plans were always way up higher than what was happening on the ground.

Build Your People

The purpose of being CEO isn’t to answer tougher questions. It’s to put the right team in place to answer tough questions. It’s to execute on the charter of the organization. My current CEO tells the team from time to time, “Hey, I don’t have that answer. I hired YOU to find that answer.” Every time he says it, I feel a mix of stomacheache (Holy cats! I’M driving this ship?) and pride. It’s great feeling like you’re the solution. But without a great team in place, things won’t get done.

Make the Tough Calls

I work from the heart. It’s just how I’m built. CEOs work from the perspective of business as well as heart. Your CEO might have to determine where cost reductions will improve the future life of the company. Do you think it’s easy to let people go? But they understand that sometimes the short term solution to a longer term success is something that will affect people’s livelihoods.

Read a Few Good Books

I read Winning by Jack Welch and Suzy Welch a few years back, and it was very eye-opening. Some people argue about Jack’s methods. I’ll say that he was pretty effective for his organization, whether or not you agree on his style. I also recommend Lou Gerstner of IBM’s book, Who Says Elephants Can’t Dance?: Leading a Great Enterprise through Dramatic Change. This really opened my eyes to how a CEO manages turmoil. Lou’s a tad bit more emotionally open than Jack, so reading the two together is useful.

What’s Your Take?

Am I full of it? Am I painting these CEOs with a shiny face? Let me know your thoughts. And does this advice make sense for you in your role? Curious as to your ideas.

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http://TheFemGeek.com thefemgeek

I definitely do not think you’re full of it but I wonder if there are two worlds going on here. What I mean is, as a Gen X we had parents who either taught us how to fight the system or work with the system compared to the non-communication that maybe they had with their parents. So, with this new generation I notice that their is a lot more need to cater to them to make them feel wanted, needed, and appreciated. How do one as a leader balance the mindset of a I need to take care of business attitude (especially since so many CEO’s are baby boomers) along with I don’t take any crap and the new generation who won’t take not being “publicly” appreciated? I’m not giving the new generation a bad rap because there is certainly validity to the concept that one should feel that what they are doing is something that’s making a difference. But it seems to me that most of the business world is now dealing with countries that still have the “old world” mentality that the work is first. I guess I am trying to get to the point, do you believe that maybe the idea you have with PodCamp can work across all platforms of business? Do you see something like this being able to take off from the corner cafe to the White House (really using my imagination here)? Maybe helping leaders to look more like a worker and the worker to feel more like a major part of the company? Hopefully all this made sense.
http://thefemgeek.com TheFemGeek

I definitely do not think you’re full of it but I wonder if there are two worlds going on here. What I mean is, as a Gen X we had parents who either taught us how to fight the system or work with the system compared to the non-communication that maybe they had with their parents. So, with this new generation I notice that their is a lot more need to cater to them to make them feel wanted, needed, and appreciated. How do one as a leader balance the mindset of a I need to take care of business attitude (especially since so many CEO’s are baby boomers) along with I don’t take any crap and the new generation who won’t take not being “publicly” appreciated? I’m not giving the new generation a bad rap because there is certainly validity to the concept that one should feel that what they are doing is something that’s making a difference. But it seems to me that most of the business world is now dealing with countries that still have the “old world” mentality that the work is first. I guess I am trying to get to the point, do you believe that maybe the idea you have with PodCamp can work across all platforms of business? Do you see something like this being able to take off from the corner cafe to the White House (really using my imagination here)? Maybe helping leaders to look more like a worker and the worker to feel more like a major part of the company? Hopefully all this made sense.
Ian

Hey, Chris. Glad your blog is back up. Thinking about changing from 1 and 1? Although my blog is Typepad hosted, my website is on iPower, and I’ve gotta say that it’s got rather good up-time.

Regards,

Ian (aka KOARC, aka HighDef)
http://psybrrr.typepad.com/kingofallremotecontrols/ Ian

Hey, Chris. Glad your blog is back up. Thinking about changing from 1 and 1? Although my blog is Typepad hosted, my website is on iPower, and I’ve gotta say that it’s got rather good up-time.

Regards,

Ian (aka KOARC, aka HighDef)
http://www.mcgrawmarketing.com patmcgraw

Great piece. One key trait that I look for in a leader is consistency. The other is collaboration.

I find I work best with those that can clearly articulate their vision, invite discussion, accept different points of view that are supported with fact and then can sit back and tell the expertise in the room to ‘make it happen’.

When I join a firm either as a consultant or employee, I need the leadership to be able to clearly articulate the vision and answer questions regarding how the organization will pursue and achieve that vision.

All too often, ‘leadership’ can’t articulate the vision beyond ‘to become the industry leader…’ Because there are many roads to ‘industry leader’ and each offer different risks, threats, costs.

I can offer the ‘leader’ informed analysis and recommendations but I feel that their compensation package requires them to select one recommendation so that I can go off and pursue and achieve the goals and objectives.

Your paragraph on building your people is key – but I will add the importance of consistently supporting your people. Yes, I was hired to provide answers and deliver results…but if you keep changing the answer key so that today “1+1 = 2″ but tomorrow it equal 4…we’re going to have a problem.

Oh, and thanks for not suggesting “Good to Great”, “Raving Fans” or anything by Covey. If I have one more C-level exec hand me a copy of these books as if it’s the Holy Grail, I will puke.
http://www.mcgrawmarketing.com patmcgraw

Great piece. One key trait that I look for in a leader is consistency. The other is collaboration.

I find I work best with those that can clearly articulate their vision, invite discussion, accept different points of view that are supported with fact and then can sit back and tell the expertise in the room to ‘make it happen’.

When I join a firm either as a consultant or employee, I need the leadership to be able to clearly articulate the vision and answer questions regarding how the organization will pursue and achieve that vision.

All too often, ‘leadership’ can’t articulate the vision beyond ‘to become the industry leader…’ Because there are many roads to ‘industry leader’ and each offer different risks, threats, costs.

I can offer the ‘leader’ informed analysis and recommendations but I feel that their compensation package requires them to select one recommendation so that I can go off and pursue and achieve the goals and objectives.

Your paragraph on building your people is key – but I will add the importance of consistently supporting your people. Yes, I was hired to provide answers and deliver results…but if you keep changing the answer key so that today “1+1 = 2″ but tomorrow it equal 4…we’re going to have a problem.

Oh, and thanks for not suggesting “Good to Great”, “Raving Fans” or anything by Covey. If I have one more C-level exec hand me a copy of these books as if it’s the Holy Grail, I will puke.
http://www.marketingovercoffee.com John Wall

There’s a good short book, called “What the CEO wants you to know”, that talks about how CEOs really need straight talk rather than insulation from bad news…
http://www.marketingovercoffee.com John Wall

There’s a good short book, called “What the CEO wants you to know”, that talks about how CEOs really need straight talk rather than insulation from bad news…
http://www.strike3designs.blogspot.com Cory Dinon

Hey Chris, great take on CEOs. I have had the great opportunity to work with a few small companies and start-ups in my short time in the working class and have learned a great deal from each of them. You hit the nail on the head when you said weak/small companies need strong leaders. Weak leaders + small company = closing doors. But working with any CEO is a great learning experience not matter how strong or weak they “appear” to be.
http://www.strike3designs.blogspot.com Cory Dinon

Hey Chris, great take on CEOs. I have had the great opportunity to work with a few small companies and start-ups in my short time in the working class and have learned a great deal from each of them. You hit the nail on the head when you said weak/small companies need strong leaders. Weak leaders + small company = closing doors. But working with any CEO is a great learning experience not matter how strong or weak they “appear” to be.
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http://mikewanner.com Mike Wanner

Chris – first time listening/watching/reading/absorbing/sharing your thoughts on topics related to my everyday life her in the corporate world. The culture of the company and the tone at which this occurs is right up there with your items. This reminds me of the “Yahoo Memo: The ‘Peanut Butter Manifesto’ that was written by Brad Garlinghouse who was not a CEO or major player at the time. His thought mirror exactly what you said in this post.

The most well-known CEO’s embrace problems/challenges and know who to count on to take decisive action.

I would say, though, that most CEO’s say they just want the details, but they have a tendency to want more than ever to be part of the discussion that affects shareholders, customers and employees. Recently I launched an SEO initiative and the CEO and presidents of both brands were intimately involved in almost every meeting surrounding the implementation and support. We are a $25M size company. In the end, it was them trying to cross over to becoming and wanting to be a ‘technologist’ because that affects our business o much these days regardless of your industry.

Thanks for sharing.
http://mikewanner.com Mike Wanner

Chris – first time listening/watching/reading/absorbing/sharing your thoughts on topics related to my everyday life her in the corporate world. The culture of the company and the tone at which this occurs is right up there with your items. This reminds me of the “Yahoo Memo: The ‘Peanut Butter Manifesto’ that was written by Brad Garlinghouse who was not a CEO or major player at the time. His thought mirror exactly what you said in this post.

The most well-known CEO’s embrace problems/challenges and know who to count on to take decisive action.

I would say, though, that most CEO’s say they just want the details, but they have a tendency to want more than ever to be part of the discussion that affects shareholders, customers and employees. Recently I launched an SEO initiative and the CEO and presidents of both brands were intimately involved in almost every meeting surrounding the implementation and support. We are a $25M size company. In the end, it was them trying to cross over to becoming and wanting to be a ‘technologist’ because that affects our business o much these days regardless of your industry.

Thanks for sharing.
http://www.techmgr.net Kevin Mullins

Hey Chris, nice post and very accurate. I think we often get caught up in our day to day roles and do not always see the big picture or communicate the benefits of the big picture to our staffs, which leads to non-alignment of goals and resources.
http://www.techmgr.net Kevin Mullins

Hey Chris, nice post and very accurate. I think we often get caught up in our day to day roles and do not always see the big picture or communicate the benefits of the big picture to our staffs, which leads to non-alignment of goals and resources.
http://www.zoomstart.com Shane

Hi Chris,

One of my biggest mentors was my CEO. Those are all great characterizations that you listed and they’re all bang-on.
http://www.zoomstart.com Shane

Hi Chris,

One of my biggest mentors was my CEO. Those are all great characterizations that you listed and they’re all bang-on.
http://www.mortgageratesreport.com Brian Brady

I liked two things about this:

1- A CEO as a relationship manager

2- That each campaign a CEO leads is performed with the end users (stakeholders, customers, employees) in mind. The balancing act is difficult but efforts must be focused on maximizing value to the end users.
http://www.mortgageratesreport.com Brian Brady

I liked two things about this:

1- A CEO as a relationship manager

2- That each campaign a CEO leads is performed with the end users (stakeholders, customers, employees) in mind. The balancing act is difficult but efforts must be focused on maximizing value to the end users.
http://www.whydom.com Barlow Keener

To take a contrarian view on the subject, I think that thinking like a CEO means having a vision and using the CEO’s personal strengths to bring that vision into reality. It can be different for different CEO’s with lots of successes and failures along the way. Look at several different CEO’s and what made them successful. Most had a #2 who helped them win. Gates and Balmer. Gates was not a good listener or good with people but he could read and pick up on ideas and Balmer was good with people. Then there is Jobs. Jobs is a visionary but has poor people skills. His vision was enough to keep his people excited. Woz was his #2 early on. The movie “The Devil Wears Prada” with Meryl Streep shows a CEO with a vision and with poor people skills. Her executive team makes her successful. Google “co-CEO’s” with Eric Schmidt as the public face works well. At Google, it seems the conversation between Brin and Page drive the business, at least that was the case in their formative years. Even now I hear they interview candidate employees together and share an office without a wall. So I think that a successful CEO always a) knows what the vision is and drives the vision to reality and b) finds co-CEO’s or executive-team member that fill in or complement the CEO’s weak areas. Together the team makes a business. It is the CEO’s job to carefully select the team and to maintain the vision.

The founder of Dunkin Donuts, Bill Rosenberg always said, “A person does not build a business, a person builds an organization and an organization builds a business.” Bill was a very difficult man to deal with day-to-day but he surrounded himself with a team dedicated to his vision and a team who filled-in or complemented Bill’s weak spots.
http://www.whydom.com Barlow Keener

To take a contrarian view on the subject, I think that thinking like a CEO means having a vision and using the CEO’s personal strengths to bring that vision into reality. It can be different for different CEO’s with lots of successes and failures along the way. Look at several different CEO’s and what made them successful. Most had a #2 who helped them win. Gates and Balmer. Gates was not a good listener or good with people but he could read and pick up on ideas and Balmer was good with people. Then there is Jobs. Jobs is a visionary but has poor people skills. His vision was enough to keep his people excited. Woz was his #2 early on. The movie “The Devil Wears Prada” with Meryl Streep shows a CEO with a vision and with poor people skills. Her executive team makes her successful. Google “co-CEO’s” with Eric Schmidt as the public face works well. At Google, it seems the conversation between Brin and Page drive the business, at least that was the case in their formative years. Even now I hear they interview candidate employees together and share an office without a wall. So I think that a successful CEO always a) knows what the vision is and drives the vision to reality and b) finds co-CEO’s or executive-team member that fill in or complement the CEO’s weak areas. Together the team makes a business. It is the CEO’s job to carefully select the team and to maintain the vision.

The founder of Dunkin Donuts, Bill Rosenberg always said, “A person does not build a business, a person builds an organization and an organization builds a business.” Bill was a very difficult man to deal with day-to-day but he surrounded himself with a team dedicated to his vision and a team who filled-in or complemented Bill’s weak spots.

Think Like a CEO

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