tawandamusarurwa
Memory Nguwi
The calibre of the chief executive officer (CEO) you hire to lead your organisation plays a big role in the company’s success.
Hiring the right CEO is one of the most important tasks for any board.
This has, however, proven to be a difficult assignment for most boards.
Most boards fail to identify the right boss for various reasons.
The biggest study on the subject that has been conducted is called the “CEO Genome Project”.
Findings from this research are interesting and should act as a guide for those hiring a CEO.
When large companies pick a CEO, 80 percent of the time, they go for an insider.
Research shows that, globally, firms lose an estimated US$112 billion due to wrong selection of a CEO.
The other big challenge is that boards tend to look for subordinates when hiring, instead of leaders.
Research shows that charismatic extroverts are likely to be selected for many jobs. However, it is important to note that they do not provide a significant performance advantage.
Women are 28 times less likely to be selected for a CEO role for various reasons unrelated to performance.
The CEO Genome Project identified some key factors as major predictors of CEO performance.
They include deciding with speed and conviction, adapting proactively, relentless reliability and engaging for results.
Over and above the factors above, the CEO needs to have the qualities listed below:
Visionary
A high-performing CEO has a clear vision for the future of the company and can communicate this vision effectively to his or her team. This is important because a clear vision helps align all employees’ efforts towards a common goal and provides direction for decision-making.
Strategic thinker
A high-performing CEO can think strategically and make decisions that align with the company’s long-term goals. This is important because it ensures that the firm is moving in the right direction and making decisions that will benefit it in the long run.
Decisive
A high-performing CEO can make decisions quickly and confidently, even in uncertain situations. This is important because it allows the company to move forward without getting bogged down in indecision.
Results-oriented
A high-performing CEO is focused on achieving results and willing to take risks. This is important because it ensures that the company is always striving for excellence and not settling for mediocrity.
Customer-focused
A high-performing CEO understands the importance of customer satisfaction. At the same time, he or she is committed to delivering products or services that meet or exceed customer expectations. This is important because customers are the lifeblood of any business, and keeping them satisfied is key to long-term success.
Innovative
A high-performing CEO constantly seeks new and innovative ways of improving the company’s products or services. This is important because innovation helps firms to stay ahead of their competition and remain relevant in a rapidly changing business landscape.
Adaptable
A high-performing CEO can adapt to changing market conditions and adjust his or her strategy accordingly. This is important because markets are constantly changing.
Resilient
A high-performing CEO can bounce back from setbacks and failures, learning from them and using them as opportunities for growth. This is important because setbacks are inevitable in any business, and learning from them can help in strengthening companies in the long run.
Collaborative
A high-performing CEO understands the importance of collaboration and works closely with his or her team to achieve common goals. This is important because no person can achieve success alone; collaboration helps ensure team members work together towards a common goal.
Empathetic
A high-performing CEO can understand his or her employees’ and customers’ needs and concerns, showing empathy when necessary. This is important because empathy helps build strong relationships with employees, customers, investors and partners.
Ethical
A high-performing CEO operates with integrity and upholds ethical standards in all business operations. This is important because ethical behaviour builds trust with stakeholders, which can be critical for long-term success.
Communicative
A high-performing CEO communicates effectively with all stakeholders, including employees, customers, investors and partners. This is vital because effective communication helps ensure everyone understands what is happening within the company and what is expected of them.
Transparent
A high-performing CEO is transparent in his or her decision-making processes, explaining his or her actions clearly.
Accountable
A high-performing CEO takes responsibility for his or her actions and holds himself or herself accountable for the success or failure of the company. He or she does not blame others or the external environment for his or her failure.
Humble
A high-performing CEO remains humble despite his or her success, recognising that he or she is part of a larger team working towards a common goal.
Data-driven
A high-performing CEO uses data to inform his or her decision-making processes, relying on facts rather than intuition or personal biases.
In conclusion, being a successful CEO requires unique qualities that enable him or her to lead the company towards success while maintaining ethical standards throughout all business operations.
Boards must be thorough when hiring CEOs, as any wrong decision at this level will be costly to the company.
The right CEOs even plan beyond their lifespan with the company. They do so because they understand that the CEO’s role is to plan for the future.
* Memory Nguwi is an occupational psychologist, data scientist, speaker and managing consultant at Industrial Psychology Consultants (Pvt) Ltd, a management and human resources consulting firm
Bongani Ndlovu
Online Reporter