Faith Popcorn On AI and the Transformation of Tomorrow

5 Practical Leadership Development Strategies That Work

Session 3: Senior Leadership Program: Customer Focus & Accountability

_In the past two decades 30% of Fortune 500 CEOs have lasted less than 3 years, while 2 out of 5 new CEOs fail in their first 18 months on the job. -_ Centre of Creative Leadership research

What stops a CEO being mediocre?

And what are the methods and mindsets of the world's most successful CEOs?

Three McKinsey & Company's senior partners set out to find out for their new book, _CEO Excellence: The Six Mindsets That Distinguish the Best Leaders from the Rest._

The McKinsey trio Carolyn Dewar, Scott Keller, and Vikram Malhotra conducted detailed interviews with a representative sample of **67 high-performing CEOs** and paired it with McKinsey's data on 7,800 CEOs from 3,500 public companies across 70 countries and 24 industries. In this article, and also in our book club interview with McKinsey senior partner Carolyn Dewar for [Leadership Pass members](https://join.thegrowthfaculty.com/leadershippass), we summarise the book _CEO Excellence:The Six Mindsets That Distinguish the Best Leaders from the Rest_

Introduction

1) Evolving CEO Challenges: The role of a CEO is increasingly complex due to factors like digital transformation, employee well-being, sustainability concerns, and heightened public scrutiny, making it more crucial for CEOs to adapt and excel.

2) Six Core CEO Responsibilities: Successful CEOs focus on six key responsibilities, including setting organizational direction, aligning teams, mobilizing leaders, engaging the board, connecting with stakeholders, and managing personal effectiveness.

3) Managing Contradictions: CEOs need to navigate various contradictions, such as balancing short-term results with long-term performance and juggling the needs of shareholders and other stakeholders, while making confident yet humble decisions.

4) Mindset Matters: The article emphasizes the importance of adopting specific mindsets, like being bold in setting a visionary direction and making bold, data-driven strategic moves early and consistently.

5) Board Relations and Accountability: Building trust and transparency with the board, along with a strong focus on delivering on commitments, are essential for a CEO's success.

Top Five Take Aways from CEO Excellence

The role of CEO is becoming more challenging, with a higher risk of failure due to:

*   Rapid digital transformation.
*   Workforce retraining and cybersecurity.
*   Focus on employee well-being, diversity, and inclusion.
*   Sustainability concerns and the demand for purpose-driven organizations.
*   Expectations for CEOs to address societal issues.
*   Increased public scrutiny via social media.

The role is getting harder

Six key responsibilities of CEOs emerged:

#### **setting the direction,**

#### **aligning the organisation,**

#### **mobilising through leaders,**

#### **engaging the board,**

#### **connecting with stakeholders**

#### **and managing personal effectiveness.**

The book attempts to teach CEOs what they actually need to do to succeed in the role.

_We concluded there is no clear pattern. The key takeaway was that despite their different approaches, every CEO at every stage of their tenure meaningfully tended to all six responsibilities._

What separates the a good CEO from the rest?

3 things struck the authors more deeply than they'd imagined:

How **unique** the role really is.

The number of **contradictions** are involved in a CEO's job.

    The sheer **amount of work** involved in doing the job well.

Chief Executive Officer of Paris-based global automotive supplier Valeo, Jacques Aschenbroich, told the authors, The CEO role is the intersection of all contradictions.

For example, CEOs are tasked with:

    Delivering **short-term results** versus investing in **long-term** performance.

    Taking time to gather facts and do **analyses** versus **moving fast** to capture opportunities.

    Respecting the **past** and creating continuity versus disrupting **the future**.

    Maximising value for **shareholders** versus delivering impact for other **stakeholders**.

    Having **confidence** to make tough calls versus having **humility** to ask for and receive feedback.

So, read on to discover the mindsets that help CEOs grapple with these contradictions.

The contradictions of the role

Direction-Setting CEOMindset

The best CEOs embrace uncertainty with a view that fortune favours the bold.

_Theyre less a taker of their fate and more of a shaper  constantly looking for and acting on opportunities that bend the curve of history._

Be Bold

With their vision statements, the most successful CEOs didnt just raise aspiration levels, they changed the definition of success.

*   Ajay Banga of Mastercard changed Win in payments to Kill cash.
*   Mary Barra of GM changed Win in the global auto industry to Win by transforming transportation.

Find and amplify intersections

The best CEOs build their vision by looking for where various aspects of their business and the market intersect. Best Buy former CEO Hubert Joly explains that setting the right course is, at the intersection of four circles: what the world needs, what you are good at, what you are passionate about, and how you can make money.

Chapter 1. Vision Practice. Reframe the Game

The best CEOs build their vision by looking for where various aspects of their business and the company's industry intersect. Best Buy former CEO Hubert Joly explains that setting the right course is, at the intersection of four circles: what the world needs, what you are good at, what you are passionate about, and how you can make money.

The best CEOs draw inspiration from their company's history, extracting the core idea behind its past success to create new opportunities to explore fresh avenues for growth and innovation. It involves aligning what the world needs, what they excel at, their passions, and profitability. However, profit isn't the primary focus for these successful CEOs; financial outcomes are a byproduct of realizing their vision.

Intuit former CEO Brad Smiths advice to new CEOs is to have "a vision that is so clear a leader doesnt have to do anything but get out of the way. Thats the most inspiring vision of all. (Quote from Kantola video)

Find and amplify intersections

Involving a broad group of leaders in the vision-setting process is crucial. People are more supportive when they have a hand in creating the vision, and co-creation is more important than perfection. A clear and simple North Star is what matters most.

People support what they help create, says Medtronics Bill George. In fact, people are five times more supportive than those who are not involved.

Best Buys Hubert Joly reinforces that point

\- the key is to create energy and manage energy. What matters is a clear and simply articulated North Star.

[Free Download: 10 Leadership Qualities That Will Help Solve Challenges in 2022](https://thegrowthfaculty.ac-page.com/monograph-leadership2022)

Involve a broad group of leaders

The be bold mindset applies not just to vision, but to the strategies employed in pursuit of it. The best CEOs boldly make big strategic moves early and often during their tenure.

  
McKinseys analysis of nearly 4000 companies over 15 years discovered 5 strategic moves matter most.

#### 1\.   Buy and Sell.

The best CEOs execute at least one deal per year on average.

#### 2\.   Invest.

When capital is spent wisely it can enable a company to expand faster than its industry.

#### 3\.   Improve Productivity.

The most successful companies reduce administrative, sales, and labour costs more deeply than others, and in so doing achieve 25% more productivity improvement than their industry median over a 10-year period.

#### 4\.   Differentiate.

The best CEOs improve their business models and create pricing advantages in ways that are big enough to change a companys trajectory.

#### 5\.   Allocate.

Resource reallocation among business units to where it does the most good.

Research shows making two of these big moves more than doubles the likelihood of rising from the middle of the pack to the top and executing three or more makes such a rise six times more likely!

The best CEOs arent only willing to venture into unchartered waters  theyre also willing to boldly stay the course on stormy seas.

#### **Be an exceptional futurist**

Anticipate the Future: All of the excellent CEOs the authors spoke to have a clear vision of the future and can anticipate changes. They stay attuned to technological shifts, evolving customer preferences, emerging competitors, and potential threats. The best CEOs then hardwire their view of the future into their companys strategic planning.

DSMs Feike Sijbesma says:

I started reading more about all kinds of subjects, including unrelated subjects, to combine the unrelated things into something new  not only in technical innovation but also in business.

I also started traveling a lot and building a network, connecting with a lot of people in business, science, and society.

Legos Jorgen Vig Knudstorp famously attended a six-day conference with adult Lego fans. He had conversations with 500-600 people.

#### **Manage Risk:**

Excellent CEOs carefully assess the risk-reward trade-offs of major decisions and consider downside scenarios. They employ decision trees to navigate decisions with imperfect information. Former CEO Rod O'Neal, for instance, evaluated decisions by exploring the potential consequences, and if a catastrophic outcome was possible, he made an alternative choice.

Former CEO of automotive parts maker Rod ONeal said one cause of their success was the things they didnt do. He methodically worked through the consequences using a decision tree.

What would be the second-, third -, fourth-, fifth-, sixth-, and seventh-order consequences?

If we came across one that, no matter how remote it was, we couldnt survive if it showed up, we made another decision.

#### **Act like an owner**

Effective CEOs think like owners, prioritizing the long-term health of the company over short-term gains. They apply rigorous criteria for acquisitions, ensuring they align with the company's mission, can create value, and are financially viable.

Valeos Jacques Aschenbroich says he thinks like an owner to secure the long term fate of the company.

If I want to improve results tomorrow, its very easy. I control R&D; I control capex. It will be fantastic, but well be dead in a few years.

I dont think you are a true CEO if you dont think long-term.

#### **Embrace Continuous Change:**

The most successful CEOs maintain a continuous rhythm of change within the organization. They view significant initiatives as a series of S-curves, driving transformation over time. This approach is akin to "applying 'heart paddles' to the organization," ensuring that momentum is sustained.

McKinsey & Companys Dominic Barton says no one likes to change, so you need to create a rhythm of change. The best CEOs think of making big moves as a series of S-curves driving change over time.

Think of it as applying heart paddles to the organisation.

Chapter 2. Strategy Practice. Make big moves early and often.

According to McKinsey, 83% of CEOs identify capital allocation as a primary lever for growth  citing it as even more important than operational excellence or M&A. (McKinsey). They also promote collaboration, manage by milestones, balance resource allocation, and acknowledge the importance of addressing "soft" issues for success.

Resource allocation is one of the most important things., - Adidass Kasper Rorsted.

Start with a zero base.

Rather than relying on historical budgets, some CEOs, like GM's Mary Barra, begin with a fresh perspective.

Is there a different business model we can use? Can we source the product from somewhere else?

Or do we need to exit the market? Would you put your own money into it?

Drawing inspiration from Formula 1, CEOs, like Oliver Bate of Allianz, encourage close collaboration between business leaders (like Lewis Hamilton) and central functions (akin to Mercedes). This teamwork ensures efficient resource allocation to achieve organizational goals.

Successful CEOs, such as Jamie Dimon of JPMorgan Chase, prioritize performance milestones over rigid annual budgets. They release investments incrementally, waiting for strong evidence of results before committing further capital.

Effective resource allocation isn't just about creating new initiatives; it's also about pruning underperforming ones. Top CEOs revisit and adjust their business portfolios regularly. Sundar Pichar of Alphabet stresses the importance of discontinuing unproductive endeavors.

A significant majority (72%) of challenges to success are related to "soft" issues like people and culture. Leading CEOs recognize the need to address these emotional and human factors. They give equal importance to managing these "soft" aspects alongside more concrete aspects of the business.

Chapter 3. Resource Allocation Practice. Act like an outsider

Mastercards Ajay Banga reinforces the importance of the companys Decency Quotient (DQ). Ana Botin, who oversees 200,000 employees at Banco Santander, drives home her companys cultural mantra Simple, Personal, Fair.

The best CEOs home in on the one thing culturally that will make the biggest difference to business performance.

Microsofts Satya Nadella decided to adopt a growth mindset as the company mantra after broad input from his team. (Helpful further reading: [18 STEPS TO RENOVATE YOUR WORKPLACE CULTURE](https://www.thegrowthfaculty.com/blog/culturerenovation))

#### 4 primary influencers that shape an employees work environment

*   Its the stories told and the questions that are asked.
*   Its the formal mechanisms that govern how work gets done (structure, processes, systems, incentives).
*   Its the role modeling employees observe (from the CEO, senior team, etc).
*   Its the extent to which people have confidence in their ability to behave in desired ways.

#### **Make it personal:**

CEO role modeling carries immense significance. To instill a culture of design thinking and experimentation at Intuit, Brad Smith took a personal approach. He openly discussed his own mistakes, emphasizing that success and failure should be treated equally. Brad went a step further by displaying his performance reviews on his office window for all to see.

We had to shift our mindsets to treat success and failure the same way. I began to publish my performance reviews on the glass window of my office.

#### Make it meaningful

Simple actions can have a profound impact. One CEO demonstrated this by removing an old branding poster from the wall and discarding it. These small acts quickly turned into powerful cultural messages. Similarly, the choice of phrases can be deeply memorable. Satya Nadella, in promoting a 'growth mindset' at Microsoft, encouraged employees to shift from 'know-it-alls' to 'learn-it-alls.'

Exceptional CEOs actively seek ways to measure shifts in their organization's culture. For instance, former Caterpillar CEO Jim Owens utilized surveys to gauge cultural changes regularly.

How do you expect employees to help you deliver on your goals and move you toward your vision if they dont understand what that vision is?... If they dont feel their manager lives those values day in and day out?

Getting the culture right is the first leg of a three-legged stool used to support an organisations delivery of a vision and strategy. The next is Organisation Design.

Chapter 4: Culture Practice. Find the one thing

4 primary influencers that shape an employees work environment

Organisations that have both stable and agile elements are:

*   Three times more likely to be high-performing than those that are agile but lack stable operating disciplines.
*   More than four times more likely to be high-performing than those that are stable, but lack agile elements.

Hence, the need for stagility  methodically enabling agility anchored by a strong organisational backbone.

#### Stop the pendulum swing:

When a CEO sees an organisation tilted one way, theres a temptation to tilt the opposite way. However, the best CEOs rarely make radical swings from one extreme to the other.

#### Emphasise accountability:

The best CEOs are relentless in clarifying where ultimate accountability rests. One highly matrixed organisation discovered 22 people had signed off on a project that went over budget and failed to deliver the needed outcome. The company was restructured so no more than three people would be responsible and accountable for most future decisions.

#### Think helix not matrix:

Top CEOs dont think in terms of a matrix. The CEO Excellence authors say a more apt representation is a helix (the double-stranded shape of DNA). In a helix organisation its not a dual hard line or a dotted line reporting structure. Rather its a split hard line where an employee reports to two different leaders for two different purposes.

Westpacs Gail Kelly made a bold structural change at the bank. She kept her products as a centre of excellence but put the power of the balance sheet into the distribution channels.

#### Make smart choices:

Explicitly making choices as to what will be stable and what will be agile is the key to breaking the otherwise predictable cycle of going through large-scale redesigns every couple of years.

Adidass Herbert Hainer:

Before, wed been a tanker with 10,000 people on it. If you wanted to turn around, it took 500 miles. Now our fleet includes speedboats.

#### Agile organisation elements might include:

*   Using team of teams approaches that delegate authority to numerous teams.
*   Creating resource pools that flow to work based on where they can create the most value.
*   Applying agile methodologies: rapidly iterating products and services by launching a minimum viable product then getting multiple rounds of customer feedback.

Chapter 5: Organisation Design Practice. Solve for stagility.

All top CEOs approached the topic of talent with a notably high level of rigor and discipline that enabled them to focus their personal time and energy on the highest impact areas of talent management.

#### Clearly define high value roles:

Once the most valuable roles are identified the best CEOs make sure that each is well defined, with a clear description of what work needs to get done and a list of the necessary skills and attributes to succeed.

The best CEOs also have a short list of must have characteristics they see as important for all leaders. For Gail Kelly at Westpac it was enthusiasm, smarts, flexibility, and results orientation, coupled with clear alignment with the company values.

#### Dont forget your left tackles

An American football team, the star left tack is the most valuable player after the quarterback because they protect the quarterback from getting sacked or even injured by those he cant see.

For example, IDBs Lilach Asher-Topilsky says its very important to have the best CFO that you can get.

They can take so much of the day-to-day off your shoulders. They become your right-hand person. People sometimes dont understand the importance of a good CFO.

#### Find the unusual suspects

The best CEOs typically see to it that their top roles are filled with best fit, and that multiple diversity lenses are applied.

Yes, this means that a CEOs direct reports arent necessarily give the freedom to choose their own teams.

They are also constantly taking in information to uncover who are the potential stars (and to uncover strugglers).

#### Build the bench

Excellent CEOs put real time and energy into coaching, retaining talent, managing performance, and planning for succession for the most valuable roles.

How do we get them the exposure and growth they need to get from point A to point B?  Piyush Gupta, DBS

Mobilising Leaders Mindset.

Solve for the teams psychology.

The best CEOs think less about what the team does together and more about how the team works together.

Chapter 6: Talent Management Practice. (Dont) put people first

A group of high performers only becomes truly high performing if its members are complementary and connected to one another, not simply working side-by-side.

#### Staff for aptitude and attidude

The right conversation about who should be on the team starts with roles, not people. What kind of senior team will move the company forward? What attributes and attitudes arent negotiable?

When picking leaders, Alphabets Sundar Pichai has grown to value empathy.

To run an organisation today at the scale of Google  with its internal and external engagement demands  requires high levels of interpersonal sophistication.

#### Act fast but fair

Before removing someone, the best CEOs make sure theyve asked:

*   Does the team member know exactly whats expected of them?
*   Have they been given the needed tools and resources, and a chance to build the necessary skills and confidence to use them effectively?
*   Are they surrounded by others who are aligned on a common direction and who display the desired mindsets and behaviours?
*   Is it clear what the consequences are if they dont get on board and deliver?

To ensure team members become and stay A players, the CEO plays a hands-on role with each individual.

Westpacs Gail Kelly said she rang all her team at least once a week for a chat.

My job was to make people be the best that they can be. To do that I needed to know them, to understand their vulnerabilities, their weaknesses, and what they were worrying about.

#### Build a coalition beyond the immediate team

Building a broader leadership coalition not only gives CEOs more leverage in driving the organisation forward, but it also puts pressure on the top team members who much respond to the leaders below them whom the CEO has trained to have the same vision about the direction of the company.

The best CEOs look for leaders who want and have the skills to build an all-star team.

(Helpful further reading: [WHAT IS LEADERSHIP DEVELOPMENT & WHY SHOULD YOU CARE?](https://www.thegrowthfaculty.com/blog/leadershipdevelopment))

Chapter 7: Team composition practice. Create an ecosystem.

Only 6% of top HR executives agree with the statement Our executive team operates as a well-integrated team.

Its very hard to get a team of professionals working well together. People feel pressure to conform to the group yet the power or the group comes from leveraging the individuality of its members. As well, a team leader must ask success-oriented people to risk failure.

So there are methods CEOs use to build high-performing teams.

(Helpful further reading: [THE 5 DYSFUNCTIONS OF A TEAM AND HOW THEY KILL YOUR CULTURE](https://www.thegrowthfaculty.com/blog/fivedysfunctionsofateam))

The best CEOs make sure that only needle-moving work items are on the agenda.

As Ecolabs Doug Baker says:

My role is making sure the top team does the big things really well. Our job is to focus on what can make the company successful and what can kill us. All the rest is email.

#### Define the first team norms

Its imperative to establish the mindset that the top team is every members first team. This means that everyone is expected to put the companys needs ahead of those on the business units or functions.

Many CEOs have a catchphrase to capture the essence of the first team mindset. Marillyn Hewson describes this ethos as being part of One Lockheed Martin, Sonys Kazuo Hirai rallied his troops around One Sony and Jim Owens emphasises Team Caterpillar.

#### Combine data, dialogue, and speed

Intuits Brad Smith describes his method to ensure decisions were data-driven:

One of the mottos at Intuit is, Because of (blank), I believe we should do (blank). If its not based in evidence, its an opinion, and we discount it.

On speed, ICICIs KV Kamath created a 90-day rule.

If we do anything, we do it in 90 days or less, or we dont do it at all.

And, at DBS, Piyush Gupta creates a MOJO at team meetings to ensure productivity. The MO is the Meeting Owner and the JO is the Joyful Observer, whose role is to the critique the meeting.

#### Invest in team building

The best CEOs combine a series of facilitated off-sites, team and individual coaching, and reflective exercises to improve teamwork.

McKinsey research has unpacked 3 key dimensions of great teamwork:

*   Alignment on direction  a shared belief about what the company is striving towards and the role of the team in getting there.
*   High-quality interaction, characterised by trust, open communication, and a willingness to embrace conflict.
*   Strong sense of renewal, meaning an environment in which team members become energised because they feel they can take risks, innovate, and learn from outside ideas.

Chapter 8: Teamwork Practice. Make the team the star. 

Role modelling by the CEO matters. To embed a cultural focus on design thinking and experimentation at Intuit, Brad Smith said he began to talk about mistakes hed made very publicly.

_We had to shift our mindsets to treat success and failure the same way._

_I began to publish my performance reviews on the glass window of my office._

Make it personal

When a CEO creates a clear and effective operating rhythm, every member of the top team can synch the rhythm of their specific area with that of the company as a whole.

A regular rhythm of reviews keeps issues from escalating. As one CEO says, by engaging consistently and substantively the leader is seen as being helpful rather than playing gotcha!.

Mary Barra of GM says:

I ask my team, When is the best time to solve a problem? I always say The minute you know you have one. Problems dont get smaller on their own.

Beyond the weekly meeting, most great CEOs conduct a more formal monthly senior team meeting. At Lockheed Martin such meetings were a full day, but many CEOs reserve a full-day and dinner for a quarterly meeting. As well, there is an annual multi-day offsite for the top team.

If the CEO is not making the gears mesh together, dysfunctions quickly become hardwired.

The best CEOs ensure if anything is out of tune, they act on it. For the best CEOs a disciplined approach starts with having the right information beyond the high-level financials. The best CEOs also ensure that granular data is comparable across the organisations various units.

#### Build a foundation of trust.

The best CEOs build trust early so they have the flexibility to make bold moves that improve performance, which in turn deepens trust.

Westpacs Gail Kelly says the role of the CEO is to make the board members jobs easier, not more difficult. It starts with forming a great relationship with the chairman.

I always saw it as my job to make sure the relationships great, not the chairmans job.

David Thodey took over as CEO of Telstra in 2014 and met with the lead director on a weekly basis to keep her informed on a new initiative.

Trust is not about charisma or friendship. Trust is based on delivery, he says.

#### Reach out to individual directors

The best CEOs invest in building relationships with all the other board members, not just the chair or lead director. It builds trust and transparency, says Aons Greg Case.

#### Expose the board to management

The executive team typically plays an active role in board meetings. In preparation, the best CEOs spend real time coaching their people to succeed in front of the board. Another approach is to have management and the board do site visits together.

Chapter 9: Operating Rhythm Practice. Get into a groove

Excellent CEOs look for ways to measure cultural change. Caterpillar former CEO Jim Owens uses a survey-based approach to measure culture on a regular basis.

_How do you expect employees to help you deliver on your goals and move you toward your vision if they dont understand what that vision is?... If they dont feel their manager lives those values day in and day out?_

Getting the culture right is the first leg of a three-legged stool used to support an organisations delivery of a vision and strategy. The next is Organisation Design.

Chapter 11: Board Capabilities Practice. Tap the wisdom of elders.

Research shows humans draw from five sources of purpose and motivation to find meaning at work:

*   Themselves  their development, their financial and non-financial rewards, and their freedom to act.
*   Fellow employees  feeling a sense of belonging, caring for one another, and doing the right thing for the group.
*   The company  achieving industry leadership through creating best practices and beating the competition.
*   The customer  making life easier and better for them by providing a superior service or product.
*   Society  making the world a better place.

Its fairly evenly divided when you tally up which employees will be motivated by each driver. So a fifth will find colleagues their primary source of energy at work, but a different fifth will be motivated by helping the customer, and so on

Clarify the societal Why?

The best CEOs instil a sense of social purpose in their organisations. Some find a social intent in their companys origin story that they can elevate.

A litmus test is whether it has emotional impact and whether it makes rational sense.

#### Embed purpose into the core

The best CEOs embed their social purpose into the core operation of their businesses, thereby minimising the tension between the two. They test their strategy, products and services, supply chain, performance metrics, and incentive to make sure they mesh with their purpose.

And they ask: What would our most critical stakeholders say are areas where were being hypocritical? and What is not currently being measured or reported that society will hold us accountable for in the future?

#### Use strengths to make a difference

The most scrutiny typically relates to the Corporate Social Responsibility risks and business opportunities around environmental, social, and governance factors (ESG). (Helpful further reading: [HOW TO START YOUR COMPANY'S ESG AND SUSTAINABILITY JOURNEY](https://www.thegrowthfaculty.com/blog/ESGbusinessstrategy))

The best CEOs attend to all these elements and, while doing so, look for areas where they can achieve outsize results by leveraging their companys strengths.

And, the best CEOs welcome scrutiny because they know that purpose is reflected in their companys soul.

#### Make a stand when warranted

The best CEOs are prepared to be thrust into the spotlight on societal issues, and many choose to be proactive. They dont confuse their personal passions for their companys principles. Sometimes listening matters more than speaking.

Chapter 12: Board Meetings Practice. Focus on the future

Before removing someone, the best CEOs make sure theyve asked:

- Does the team member know exactly **whats expected** of them?

- Have they been given the needed **tools and resources,** and a chance to build the necessary skills and confidence to use them effectively?

- Are they **surrounded by others** who are aligned on a common direction and who display the desired mindsets and behaviours?

- Is it clear what the **consequences** are if they dont get on board and deliver?

Chapter 13: Social Purpose Practice. Impact the Big Picture

There are many instances where something that seemed quite mundane at the outset turned into an issue to manage. Mishandling these relationships can cause irreparable reputation damage, which at best can end a career and at worst kill a business or drive it to change strategy.

Contain the time spent Outside

The best CEOs place a firm, absolute boundary on how much time they will spend with the Outside. Once they set the amount of time they want to spend with outside stakeholders, the best CEOs prioritise meetings based on which interactions help the company live its purpose, deliver on its strategy, and manage short- and long-term risks.

Understand their Why?

The best CEOs go out of their way to go beyond the what and understand their stakeholders why?.

Harvest new ideas

Top CEOs not only engage their stakeholders to make a decision, reach an agreement, or achieve an understanding. They also harvest new ideas that can make the business better.

Aons Greg Case:

You, of course, interact with clients to try and actually serve them, but you also interact with clients to understand how you want to change.

Maintain a single narrative

Having a single narrative that cuts across all stakeholder groups creates a virtuous cycle that often enables CEOs to spend less time with stakeholders as they try to build a track record of consistency.

Chapter 14: Stakeholder Interaction Practice. Get to the essence

A crisis can arise from anywhere. The best way to manage a crisis is, of course, to prevent it in the first place. But no matter how well a company is run, the question for even the best CEOs isnt if theyll have to lead through a crisis, its when.

To deal with crises, Warren Buffett has a mantra: Get it right, get it fast, get it out, and get it over.

Even if a crisis doesnt arise, regular stress-testing can reveal opportunities to make a business more resilient. CEOs who build resilience ahead of a crisis will find it far easier to deal with what comes.

Many crises directly affect one or two parts of the organisation and its up to the CEO to keep everyone else focused on driving the business forward.

Ahold Delhazies Dick Boer has 3 lessons for CEOs:

*   Do not chair or lead your crisis team. Let them report to you. This gives you space and time to oversee all the elements of the business, not only the crisis.
*   Show confidence in your organisation. Show that youre in control, that you know what youre doing, and that youll take care of your people and your customers.
*   Think of whats next even when the storm is still around you, because there will be opportunities and other situations you have to manage as a consequence of the crisis that you might not have thought about.

In the book Leadership on the Line, authors Ron Heifetz and Marty Linsky advise leaders to periodically get off the dance floor and up onto the balcony.

This way they can see patterns and see hope on the horizon, just as Adidass Herbert Hainer did in a crisis.

It doesnt matter how difficult times are, there is always a world after a crisis. Even if the situation looks bleak, believe in yourself and your people and maintain a positive attitude.  Adidass Herbert Hainer

The best CEOs are extremely structured about how they use their time. Theyre also disciplined about building in flexibility.

The job of a CEO is different every day. Stuff just drops in. If you dont have a framework, youre going to constantly be dealing with the crisis of the moment or with things that arent necessary.

U.S. Bancorps Richard Davis suggests You just have to take everything as it is and isolate, manage it, isolate, manage it.

Being fully in the moment applies as well to home life, and the best CEOs communicate with their families about the pluses and minuses, and proactively protect vacation time. This offers an opportunity for others to step up and lead.

#### Infuse energy into your routine

The best CEOs are aware of what generates and what depletes their energy, and they work hard to avoid energy troughs  long periods of activity after which theyre worn down and frustrated.

[GROWTH FACULTY SUPPORTS WORKPLACE MENTAL HEALTH WITH A WEEK OF FREE EVENTS](https://www.thegrowthfaculty.com/blog/mentalhealthandwellbeingweek)) [AVOIDING MELTDOWN: 17 HABITS TO THRIVE IN LEADERSHIP AND LIFE](https://www.thegrowthfaculty.com/blog/habitsbetterleadership)~)~

Its crucial for the CEO to have a strong office staff. The best CEOs personal team always includes a talented, dedicated administrative assistant, if not two, and increasingly a Chief of Staff (COS) to help manage the complexity of the job.

Some have people who help manage their whole life, including family management and household duties.

Chapter 15: Moments of Truth Practice. Stay elevated

The best CEOs are keenly aware of the difference between doing and being, and the tremendous potential of getting both right.

Cincinnati Childrens CEO Michael Fisher has not just a to-do list, but a to-be list as well.

Today I might want to be generous and genuine. I hope Im that way every day. But today I want to make sure it stays top of mind.

All eyes are on the person in the most senior role. Staying true to ones values can in the short term feel like a losing proposition, but in the long term the best CEOs find it always pays off.

Telstras David Thodey had a campaign to be more customer-centric and asked his employees to do whatever it took to please the customer, no matter the cost  within certain limits. When heavy rain caused copper lines to experience faults, which impacted customers, he approved a $40 million fix. It was staying consistent to what he believed.

#### Adapt to what the company needs

One of the 10 [types of leadership style](https://www.thegrowthfaculty.com/blog/leadershipstyles) is situational leadership. Its about adapting their style to the situation while staying authentic. Being who the company needs you to be while staying true to your convictions requires input and feedback.

#### Seek to continuously grow

CEOs generally receive very little direct coaching and are increasingly isolated from constructive criticism. So, they must ask for feedback. Continuous learning takes courage.

As Best Buys Hubert Joly says, The notion of vulnerability in a leader is a recent notion.

Andrew Wilson at Electronic Arts believes that organisations today look to their CEOs not just for professional guidance but also for personal, spiritual, and philosophical support.

Sometimes it just takes showing a bit of humanity to inspire the troops.

Andrews employees thanked him for pausing a Zoom meeting during the pandemic to make a paper airplane for his five-year-old.

Thank you. You gave us permission to be parents, they said.

Chapter 16: Leadership Model Practice. Live Your To Be List

The CEOs spoken to for CEO Excellence came across to the authors as down-to-earth and genuinely wanting to be of service to their colleagues and the institutions they represent.

#### Dont make it about you

Mastercards Ajay Banga says CEOs are just stewards of the system in a ship sailing through the sea.

You have to make sure the boat doesnt sink while youre there and that it picks up a couple of extra sails and some new engine technology. You make the boat work better. But you dont brand the boat with your name and call it the Ajay Banga boat.

#### Embrace servant leadership

A leader serves because they are the leader, meanwhile they are the leader because they serve.

I dont think enough CEOs understand that practicing humility is not only good behaviour, but it will win you more followers than any strategy or tactic or mandate youll ever, ever have.  U.S. Bancorps Richard Davis

Humility (along with an indomitable will) is a key factor in [Jim Collins's Level 5 leadership](https://www.thegrowthfaculty.com/blog/jimcollinsleadership). Frank Blake of Home Depot says in CEO Excellence to engage in servant leadership is to think of the organisation as an inverted pyramid with the customers and frontline workers on the top of the chart and the leader on the bottom.

How do I mesh what I care about with what they care about, and how do I move that up through the organisation?

#### Create a diverse kitchen cabinet

Its important to have people close to you who arent afraid of you, says Itau Unibancos Roberto Setubal.

Mastercards Ajay Banga puts a premium on having diverse perspectives.

I wanted the views of people who didnt look like me, walk like me, go to the same schools, have the same experiences, or the same backgrounds.

#### Feel gratitude

CEOs who feel gratitude tend to perform better and, in having a positive impact, their gratitude only increases.

(Helpful further reading: [ENGAGING EMPLOYEES: LEADING WITH GRATITUDE BY ADRIAN GOSTICK & CHESTER ELTON](https://www.thegrowthfaculty.com/blog/leadingwithgratitudeeltongostick))

Chapter 18: Perspective Practice. Stay humble.

The authors believe that the role has more in common with being a decathlete than mastering any one skills. Theyre not the world number one at direction setting, aligning the organisation, mobilising leaders, engaging the board, connecting with stakeholders, or managing personal effectiveness, but theyre world class at integrating all of these responsibilities simultaneously.

#### Patterns and archetypes

No matter the situation, the CEOs featured in CEO Excellence made vastly different choices as to where to focus and when.

#### Invest in Your Teams with Our Growth Faculty Pass

High performing teams need professional development and upskilling to ensure they have the traits needed for this new world of work. Our [Growth Faculty Pass](https://join.thegrowthfaculty.com/#plans) gives you access to the best minds and brilliant ideas with weekly live, interactive, virtual masterclasses. Our speakers and authors include Jim Collins, [Liz Wiseman](https://www.thegrowthfaculty.com/blog/LizWisemanImpactPlayers), Stephen M.R. Covey, Whitney Johnson and more.

Detailed summary of CEO Excellence by McKinsey & Company Senior Partners

Six Mindsets That Distinguish the Best Leaders From the Rest

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Stay Inspired

Detailed summary of CEO Excellence by McKinsey & Company Senior Partners

Six Mindsets That Distinguish the Best Leaders From the Rest

Keep informedStay Inspired

Keep informed
Stay Inspired