The CEO arguably has more potential for influence than anyone else in a company. But maximizing the roleâs potential is extremely difficult. Just thinking about the responsibilities is enough to trigger spontaneous exhaustion. The CEO is tasked with forming a companyâs strategies and then marshaling the resources to deliver on them. And while other C-suite officers and employees help execute strategy, the CEO stands alone as the person ultimately responsible for its success or failure. What the CEO controls typically accounts for 45 percent of a companyâs total performance.
Being a CEO is an incredibly challenging yet rewarding role. As the chief executive officer, you are ultimately responsible for the performance and growth of the entire company. This requires strong leadership, strategic thinking, and a myriad of other skills. If you aspire to be a successful CEO, here are the most important qualities and abilities you need to develop:
Strong Leadership Skills
First and foremost a good CEO must have exceptional leadership capabilities. As the head of the company the CEO needs to inspire and motivate their team to work together toward a common goal. Strong leaders are able to align employees behind a shared vision and strategy for the organization. They empower their people, provide clarity on roles and responsibilities, and foster a culture of collaboration. Without great leadership, a CEO will struggle to drive the organization forward.
Strategic Thinking
In addition to leadership, CEOs must possess sharp strategic thinking abilities. CEOs are responsible for setting the overall direction and strategy of the company. This requires the ability to analyze the competitive landscape, identify new growth opportunities, and make decisions that position the company for long-term success. CEOs need to think several steps ahead and anticipate future challenges and trends. Strong strategic thinking skills empower CEOs to make smart moves that will allow the company to thrive.
Adaptability
Given the fast pace of change in today’s global business environment, adaptability is a must-have trait for any CEO. Markets evolve, new competitors emerge, regulations shift – CEOs must be comfortable with change and able to adjust their strategy and leadership approach accordingly. Rigid thinking can sink a company. The most effective CEOs are flexible, open-minded, and responsive when faced with new circumstances.
Strong Communication Skills
Communication is one of the most vital skills for any CEO. Internally, CEOs need to regularly communicate with employees to provide direction, give feedback, and keep teams aligned. Externally, CEOs serve as the public face of the company, communicating with media, investors, partners, and other stakeholders. Strong verbal and written communication skills allow the CEO to successfully convey the company’s mission, values, and strategy. Without clear communication from the top, organizations can easily become misaligned.
Decisiveness
Given the high level of ambiguity and complexity inherent in the role, CEOs must be comfortable making big decisions with imperfect information. The job requires the ability to take in many inputs and perspectives and then make timely calls. CEOs who hesitate or delay important decisions can create problematic uncertainty within an organization. The best CEOs are decisive when needed while soliciting diverse viewpoints.
Strong Integrity and Ethics
To earn trust and respect as a leader, CEOs must demonstrate unimpeachable integrity and ethics. Employees, customers, shareholders, and the public will only truly embrace a CEO who they believe acts with honesty, fairness and strong morals. Ethical lapses by a CEO can sink a company’s reputation and stock price. Setting a strong tone of integrity from the top is vital.
Emotional Intelligence
EQ or emotional intelligence enables CEOs to effectively manage relationships and interactions – a core part of the job. CEOs need self-awareness and the ability to tune in to the emotional needs of others. This allows them to motivate and connect with employees, build rapport with shareholders and the board, and demonstrate empathy when faced with difficult situations. Without emotional intelligence, a CEO will struggle to establish the strong bonds necessary to lead.
Resilience
The life of a CEO is filled with stress, crises, heavy workloads, public scrutiny, and even failure. CEOs need the resilience and mental toughness required to power through the inevitable challenges and keep driving the organization forward. Difficulties like missed earnings targets or layoffs can quickly sap morale, and the CEO needs to remain positive. Staying resilient allows top leaders to maintain both their physical and mental health despite an often-punishing schedule and environment.
Of course, there are many other important skills that contribute to success as a CEO, including financial acumen, people management abilities, customer focus, and domain expertise. However, truly mastering the capabilities above will poise any aspiring chief executive for effectiveness. Keep working to develop and refine these essential CEO skills.
While becoming a top-notch CEO requires tremendous effort and commitment, the journey is an incredibly rewarding one. As CEO, you have a platform to make a major positive impact on your employees, customers, and the broader society. Work hard to build your skills, lead with integrity, and you can take satisfaction in building a company that both wins in the marketplace and contributes to the world.
So you want to be CEO. What are four key pieces of advice?
Since Edmund Hillary and Tenzing Norgay first summited Mount Everest in 1953, only approximately 6,300 people have followed. In that same period, we estimate that 1,000 fewer people have made it to the top of Fortune 500 companies. Statistically speaking, youâre more likely to be struck by lightning.
That doesnât stop people from wanting the top job. Itâs the most sought-afterâand powerfulâtitle in business. If youâre willing to take on the odds, there are four pieces of advice that will help you land the corner officeâand when you do, serve successfully.
- Take a gut check of your motivations and expectations. âIf the main reason you want to have the CEO title is for ego, thatâs unlikely to be a sustainable motivator over time,â says former Cincinnati Childrenâs Hospital Medical Center CEO Michael Fisher. If youâre driven by a passion and vision for how you can help others climb further and faster to achieve new heights collectively, youâll be more likely to succeed as CEO.
- Elevate your perspective while boldly delivering results. The best CEO candidates are able to deliver on their day jobs while stepping back and honing their view of the future, the company, and the companyâs stakeholders. In both arenas, fortune favors bold action. (See more on boldness later.)
- Round out your profile with humility. Humans are predisposed to view their own actions favorably or interpret events in a way thatâs beneficial to themselves. Aspiring CEOs should cultivate the humility to recognize their inherent biases and counteract them. They can do this by objectively assessing their capabilities versus whatâs needed, filling their skill gaps, and refusing to play politics.
- Understand the CEO selection process and put your best foot forward. The final stages of CEO selection are likely to be stressful. Knowing what to expect can help you make the best impression. Preparation is the most important componentâbut donât underestimate the power of authenticity. Landing a job youâre not able to do wonât work for anyone.
But the corner office isnât the end of the journey. Once CEOs get settled in, the work has just begun.
Introducing McKinsey Explainers: Direct answers to complex questions
Based on empirical research and interviews with approximately 7,800 top CEOs, the authors of the McKinsey book CEO Excellence found that boldness is an important predictor of excellence. And time is of the essence on boldness: âif youâre not bold in that first year, youâre not going to move the needle,â says McKinsey senior partner Vikram Malhotra.
What does boldness mean? According to CEO Excellence, it means thinking differently about what is and isnât under your control. You probably have control over more than you think. Even if, for example, youâre the CEO of an organization in an industry facing low growth with certain adverse trends, adaptation to those trends is always possible to some extent. In conversation with CEOs, weâve seen chemical companies become life sciences companies and old-energy companies become clean-energy companies.
15 Skills All CEOs Master
How do you become a great CEO?
Know thyself. See your top talent out. Humanize. Take a stand. Ultimately, we want our leaders to inspire us. Hear more about what top CEO program leaders have to say on what it takes to lead and serve as a great CEO.
How can a CEO be a good leader?
Aspiring CEOs should cultivate the humility to recognize their inherent biases and counteract them. They can do this by objectively assessing their capabilities versus what’s needed, filling their skill gaps, and refusing to play politics.
What makes a successful CEO?
Office: Manage time and energy. The most successful CEOs quickly establish an office (often including one or two highly skilled executive assistants and a chief of staff) that makes their priorities explicit and helps them spend their scarce time doing work that only CEOs can do.
How can a startup CEO be a successful CEO?
The pressures and potential liability for CEOs can be enormous, and these chief executives should take appropriate steps to maximize success for their business and mitigate liability risk to themselves. Here are seven rules of success for startup CEOs: 1. Effective CEOS are in Continual Fundraising Mode
