A study that was conducted over four years and ended in 2017 revealed that the downward trend of CEO longevity shows no signs of abating. During the study itself, the median tenure fell from six years to five. By contrast, in 2002, CEOs held their positions for close to ten years.
Investors’ willingness to call for heads when performances fall short of targets is contributing to this phenomenon but it is only part of the picture. Another aspect that bears scrutiny is the level of preparedness of the individuals who take the title role.
Expectation: Balance
Reality: You are Responsible
The common belief is that the higher up you are in an organization, the less work there is. In certain aspects, that may be true – the CEO of a construction company does not work up a sweat like a person working on site. However, she is responsible for everyone shoveling dirt, where the shoveled dirt goes, how it gets there, and what subsequently happens to it. Her responsibilities encompass similar wide-ranging tasks for every job that the company’s employees undertake. There may be less sweat on the CEO’s brow but behind it, her brain must contend with a lot more than each of her subordinates.
Expectation: I’m the Boss
Reality: You are the Leader
As CEO, you oversee the senior management team comprising colleagues who were your rank equals before. It involves finding the right person for the right job and also the difficult task of letting go of the wrong people. If finding consensus within your team was a challenge in your former role, it will only be more difficult in this one. There is also the unenviable task of navigating the politics of the workplace, compounded by your new role as its gravitational center. This brings with it a need for far greater insight and a conscious effort to be impartial in your decisions.
Expectation: I am the Best
Reality: Make Your Team the Best
The title of CEO is a recognition of your accomplishments throughout your career, as well as the leadership and management qualities that you possess. This realization can make it very hard to not assume that you know better than everybody under you. However, that is a fiction that can undermine not just your authority but also compromise the organization’s performance. Recognize that while your bird’s eye view of the company gives you incredible perspective, individual areas of operations are best left to the executives in charge. Resist the temptation to dictate details. Instead, have the right person for the job and manage them well.
Company boards are appointing younger CEOs than ever before. This accelerated journey to the top can be empowering but it also requires expeditious learning. When you can distinguish between these three myths and the reality, you give yourself and the organization the most reliable pathway to success.
At DeSantis Trusted Advisors, we provide consulting, advisory, and coaching services to business leaders with the goal of creating pathways to success. Contact me today for more information.
