I recently had coffee with a Global VP of HR of an exceptional technology firm in London. We often meet to discuss many strategic topics and met to discuss my new book, “The Trust Paradigm”.
During the course of coffee we decided to focus on one of her questions: ‘What is the journey today for CEO’s’’
Interestingly enough I wrote an article back in 2015 called “The CEO Journey”, which discussed why CEO’s sustaining growth and value in a company comes from making the right strategic choices and then aligning the business model and operational performance, stakeholder requirements and risk management to those choices.
It is clear the Chief Executive Officer (CEO) has ultimate responsibility for the success of their organisation, and despite having one official title, their job actually encompasses a whole host of different roles, styles, behaviours and skills.
Every CEO is on his or her own journey and will face very different and specific circumstances along the way. They need to be cognisant of their personal ambitions and agenda and align it with the best interests of other stakeholders in the organisation and the people within it.
However, very little data exists on what CEO’s think, feel and do at the various phases and stages that typify the experience, how they tend to perform over time and what factors are most important to them at various points in the journey. Having worked with CEO’s and C-Suite leaders for over 20 years, it sparked our interest to look into this intriguing topic more deeply to capture insights that others can learn from.
Understanding these patterns – and the critical moments experienced by CEO’s will, according to The CEO 100 publication, “enable a new dialogue between boards and CEO’s” as well as being able to recognise “the typical stages of value creation which can empower boards to drive accountability, support CEO’s at each stage in the best possible ways and think about the sustained success of the organisation”.
The value for CEO’s is that it can help to manage expectations, plan ahead most appropriately, build trust and transparency with key stakeholders and continually adapt to the changing context of their tenure. Even being able to relate to stories and examples from other CEO’s can offer, if nothing more, reassurance that others are also experiencing a host of similar challenges and a steep learning curve in their often lonely, yet exciting role.
Steven J. Stein, PhD, is a clinical psychologist and the founder and executive chair of MHS, a leading international behavior analytics company who once stated: ‘The way we look at resilience has changed. We used to think it was grit, being strong, getting through it. Now it has shifted to more self-awareness and responsiveness to the people around you.’
CEO’s today are tasked with navigating an extraordinarily complex business environment. The level of disruption they must contend with is at an all-time high — up 200% over the past five years. According to Accenture the vast majority (93%) are dealing with 10 or more global challenges to their business. Future shocks and new disruptions are certainly coming. The need for resilience has never been more urgent.
I have always believed as a core human trait, resilience is written into our DNA, a default code that helps us survive and adapt in the face of disruptions large and small. Given its central role in human flourishing, resilience has been studied across the fields of positive, cognitive, and clinical psychology.
For decades, researchers have also studied it through the prism of neuroscience, coaching, leadership, and philosophy. More recently, this key attribute has been put to the test, as 2020 made resilience scholars out of just about everyone. Yet, resilience is more than meets the eye.
Resilience goes beyond merely weathering storms – it’s about using adversity as fuel for growth. In leadership, resilience empowers CEO’s to meet challenges head-on, keep a positive outlook, and motivate their teams to push through. Resilient leaders stay cool under pressure, think strategically, and find innovative solutions to tricky problems.
Critical for leaders in today’s fast-paced, ever-changing business scene, resilience enables them to view setbacks as momentary hurdles rather than impassable walls. Resilient leaders embrace failure as a chance to learn and continuously improve.
By demonstrating resilience, CEO’s inspire their teams to adopt a similar mindset, creating a culture of perseverance, determination, and adaptability qualities crucial for success in today’s competitive business arena.
Resilient leaders possess key traits that help them navigate challenges gracefully and effectively. One such trait is self-awareness, allowing leaders to understand their strengths and weaknesses, leveraging strengths, and seeking support when needed.
Another crucial trait of resilient leaders is emotional intelligence. They have a keen ability to understand and manage their emotions and those of others, enabling effective communication, relationship-building, and team motivation.
Moreover, resilient leaders are adaptable and flexible, embracing change and being willing to adjust strategies and approaches when necessary. This flexibility enables them to thrive in dynamic and unpredictable environments.
Resilient leaders also prioritize self-care and well-being, understanding the importance of taking care of themselves physically, mentally, and emotionally. By practicing self-care, they ensure they have the energy and resilience to lead effectively and inspire their teams. Resilient leaders are lifelong learners, constantly seeking opportunities for growth and development, whether through formal education, mentorship, or self-study. This commitment to learning enables them to stay ahead of industry trends and adapt to new challenges.
Furthermore, resilient leaders foster a culture of trust and open communication within their organizations. They encourage their team members to share their thoughts, ideas, and concerns openly, creating an environment where everyone feels valued and heard. This open communication allows for collaboration and innovation, leading to better problem-solving and decision-making.
Resilient leaders lead by example. They demonstrate integrity, authenticity, and ethical behavior in all aspects of their leadership. By setting a positive example, they inspire their teams to do the same, creating a culture of trust, respect, and accountability.
CEO’s, as leaders of organizations, face unique challenges that require a high level of resilience. From dealing with organizational crises to managing stakeholder expectations, CEO’s must be able to weather the storms that come their way.
CEO’s encounter a myriad of challenges regularly, including managing ambiguity and uncertainty, making decisions based on incomplete information, or in rapidly changing circumstances.
For example, imagine a CEO of a technology company who is faced with the decision of whether to invest in a new emerging technology. The CEO must weigh the potential benefits against the risks and uncertainties associated with the technology. This requires a resilient mindset to navigate through the ambiguity and make a well-informed decision.
Besides, CEO’s are also tasked with managing diverse teams and ensuring collaboration and cohesion. This involves navigating conflicts, motivating employees, and fostering a culture of inclusivity.
Consider a CEO who oversees a global organization with employees from different cultural backgrounds. The CEO must have the resilience to understand and appreciate diverse perspectives, manage conflicts that may arise, and create an inclusive work environment where everyone feels valued and motivated.
CEO’s are responsible for planning and executing strategies that drive organizational growth. This includes identifying and capitalizing on market opportunities, managing resources effectively, and staying ahead of the competition.
Take the example of a CEO in the retail industry who is faced with the challenge of expanding the company’s market share. The CEO must have the resilience to analyze market trends, develop innovative strategies, and lead the organization through the implementation of these strategies to achieve sustainable growth.
Resilience plays a vital role in helping CEO’s overcome the challenges they face. By cultivating resilience, CEO’s are better equipped to handle uncertainty and make sound decisions in ambiguous situations. They maintain composure in high-pressure scenarios and inspire their teams to stay focused and motivated.
For instance, a resilient CEO who is faced with a sudden economic downturn can remain calm and composed, assess the situation objectively, and make tough decisions to steer the organization through the crisis. This ability to stay resilient in the face of adversity inspires confidence in employees and stakeholders, fostering a sense of trust and stability.
Furthermore, resilience enables CEO’s to navigate conflicts and address issues effectively. They approach conflicts as opportunities for growth and seek win-win solutions that benefit all parties involved.
Imagine a CEO who encounters a conflict between two key executives in the organization. A resilient CEO would approach the conflict with an open mind, actively listen to both parties, and facilitate a constructive dialogue to find a resolution that not only resolves the conflict but also strengthens relationships and promotes collaboration.
Resilient CEO’s are also adept at managing change and adapting their strategies to evolving market conditions. They embrace innovation and encourage their teams to continually seek new opportunities for growth.
For example, consider a CEO in the technology industry who realizes that the market is shifting towards a new disruptive technology. A resilient CEO would proactively adapt the company’s strategies, invest in research and development, and foster a culture of innovation to stay ahead of the competition and capitalize on the emerging market opportunities.
Resilient leaders possess the ability to overcome obstacles and maintain focus on their objectives, regardless of the challenges they encounter. They exhibit a sense of determination and perseverance that inspires others to follow their lead.
Moreover, resilient leaders are able to effectively manage stress and maintain a positive mindset even in the face of adversity. They do not let setbacks derail them, but instead use setbacks as opportunities for growth and improvement.
Resilient leaders are not only successful in the short term, but also in the long term. This is because resilience enables leaders to adapt to and thrive in ever-changing business environments. They have the ability to anticipate and respond to market trends, navigate industry disruptions, and seize new opportunities.
Additionally, resilient leaders are effective in managing and developing talent within their organizations. They create an environment that encourages growth and innovation, attracting top talent and retaining them for the long term.
As the business landscape continues to evolve, the role of resilience in leadership will become even more critical. Resilient leaders will be at the forefront of navigating future challenges and guiding their organizations to success.
In a rapidly changing world, leaders will face increasingly complex challenges. Resilience will be essential in managing uncertainty, adapting to technological advancements, and leading diverse teams.
Furthermore, the COVID-19 pandemic has highlighted the importance of resilience in leadership. Leaders who were able to pivot quickly, make tough decisions, and inspire their teams in the face of adversity were the ones who successfully steered their organizations through the crisis.
In summary, resilience is a critical trait for CEO’s to possess to effectively lead their organizations. By being resilient, CEO’s can navigate through ambiguity, manage diverse teams, and drive organizational growth. Resilience enables CEO’s to make sound decisions, address conflicts, and adapt to changing market conditions, ultimately ensuring the long-term success of the organization.
“A Chief Executive is a leader, a trendsetter, somebody who is ahead of the curve and leads their business by example.” The unexpected is the new normal, meaning leaders need to be agile, adaptive, engaging, and inspiring with the ability to deliver positive results reliably. The view from CEO’s in our network was very much that ‘everyone is in it together’ and you must nurture strong relationships if you are to build trust, encourage the development of others and listen to trusted colleagues.
The importance of developing strong relationships with key stakeholders early on is an important reflection from many CEO’s. By breaking up the journey into a series of phases, I believe this helps to better prepare CEO’s for what they might prioritise at points in their journey. Insights clearly highlight the lack of preparation before and after the pre-appointment stage to set the CEO up for a smoother start which is more in line with their expectations.
As Fredrick W. Smith – CEO of FEDEX once said:
“Leaders get out in front and stay there by raising the standards by which they judge themselves – and by which they are willing to be judged.”
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