How Great You Are Not

Posted on October 13, 2010 by Ronald T. Brown, Ph.D.

A CEO may think they have the power to set strategy, the authority to make things really happen, and have full access to every point in their organization.

But the following 7 realities tell the truth - what is actually the case:

1) A CEO can’t fully run a company. The sheer volume and intensity of external demands take many new CEO’s by surprise. Almost every CEO struggles to manage the time drain of attending to shareholders, analysts, board members, industry groups, politicians, and other stakeholders – Thus the wise use of a exemplary Leadership Team is required.

2) For a CEO, simply giving “orders” is very costly. Only in times of critical urgency is giving orders appropriate and valued by staff and employees. During regular business situations, order giving will suck the engagement and creative juices right out of the organization.

3) It is hard for a CEO to know what is really going on. While a CEO is flooded with information, reliable information is surprisingly scarce. This is because most information that reaches a CEO has been filtered in some way (sometimes with good intentions – and sometimes with not so good intentions.)

4) CEO’s are always sending a message. The words and actions of a CEO, however small or casual, are instantly spread, amplified, scrutinized, interpreted, and sometimes drastically misunderstood.

5) The CEO is not the boss. Although a CEO may sit at the top of the hierarchy, they still report to a Board of Directors – who are ultimately in control.

6) Pleasing the shareholders is NOT the goal for a wise CEO. CEO’s must realize that the creation of long-term value is supremely important. Quick maneuvers to increase stock prices are usually not wise.

7) A CEO is only human. A CEO’s needs to stay balanced, and connected, not only with the organization – but also with their family and community.

Some More General Lessons:
• A CEO must learn to manage organizational culture and context more than focusing on the daily operations.
• A CEO must recognize that their position does not confer the right to lead – nor does it guarantee the loyalty of those in the organization.
• A CEO must remember they are subject to stern limitations, and must resist feelings of being some type of organizational “god.”