CEO SUCCESS : DIFFERENT CAPS FOR THE COMPLEX STRATEGY GAME
Finally,
the CEO must be effective in performing six versatile role To produce
exceptional results, the CEO must understand how to perform all six roles well
and must recognize that five-out-of-six is not good enough.
Too many CEOs allow themselves to get drawn in to the maze of
day-to-day firefighting – we call this working in the
business. On the other hand, outstanding CEOs make the
time to rise above the firefighting and focus on the big picture – we call this
working on the business. From personal experience and in
working with others, we have found that there are six core roles that the most
effective CEOs perform on a consistent basis..
And
CEOs don’t have a choice when it comes to their responsibilities – they must
see that all are done and done well. There is no one to pick up the slack
if the CEO does not tend to them. We can help ensure that these responsibilities are effectively executed.
To
lead, a CEO must first define a unifying direction for the company.
Choosing the right vision and expressing it with clarity is the first
challenge of true leadership. A well crafted vision statement forces the
CEO and management team to come to grips with a number of subtle, but very
important considerations: the vision statement should identify what is unique
about your company; it should guide the activities of all employees; it should
inspire them to choose to work for your company and give their all; and it
should be stated in such a way that you can measure progress and know when you
have achieved your vision.
There are fundamental rules of markets and competition, and there are inherent
capabilities and limitations of any organization -- together these make some
visions attainable while others are not. The CEO needs to be able to
articulate a strategy for achieving that vision in light of the overall market,
the company’s position, the competition, as well as other potentially
significant factors, such as macro-economic conditions, politics, and
regulatory constraints. At the core of your strategy should be a
path that creates a position of true competitive advantage.
While the CEO must ensure that there is a logically tight strategy, it is also
important to make certain that the basic precepts of strategic thought permeate
the whole organization from top to bottom. Strategic thought is not just
a top level concept, but it should be present at every level in the
organization.
BUIDLING THE TOP-DECK PLAYERS:
Without the team to implement them, a well developed vision and a logically
sound strategy are merely concepts, and every experienced CEO understands that
success depends on the strength of the team. While high performance teams
begin with strong talent, they must be shaped through the creation of an
environment that values the contribution of individuals, sets expectations for
performance, operates based on sound decision making processes, and motivates
team members to give their all for the objectives of the company.
DRAWING THE ROADMAP:
For the strategy to be effective it must guide all the decisions and actions of
the company, and it is the translation of the strategy into a more detailed
operating plan that ensures that result. The operating plan consists of a
set of specific actions with quantifiable results, including milestones and
timelines, and identifies key risks and contingency plans for the higher risk
items. It is most important that the set of actions prescribed by the
operating plan, when achieved, ensures the achievement of the strategy.
The operating plan is also the basis for resource allocation, and as such,
budgets should follow the development of the operating plan. The real
value of the operating plan is to focus your team selectively on those
activities which are the most valuable — and which together add up to a
position of true competitive advantage for the company.
SHOWING EXCELLENCE IN EXECUTION
In
the final analysis, it is results that count; the best vision, strategy and
operating plans are useless if they are not diligently executed.
Fulfilling the role of follow-through in a structured, thorough way involves
five steps: setting milestones for key operating plan deliverables; measuring
results against those milestones; analyzing any results that fall short of the
milestones; prescribing corrective actions; and updating the operating
plan. One of the key benefits of a structured and thorough follow-through
approach is that it serves as an early warning system for your company which
will dramatically increase the odds for effective execution.
CREATING
THE BUY-IN AND PARTICIPATION
The fundamental role of communication is to reinforce and solidify all that you
have done in your first five roles as CEO. The quality with which you
communicate throughout your company is a great multiplier – it will either
complete the circle of your vision, strategy, team, operating plan and
follow-through, enabling them to be realized as planned, or it will greatly
marginalize your work on those other five roles. Communication ensures that
everyone understands the company’s direction and their role in
making it a reality. Communication also serves to motivate employees,
getting their buy-in and reinforcing it on a continuous basis. And as
critical as all the others, communication provides the opportunity to get
feedback from those closest to the realities of your company, so that
adjustments can be made as needed.
With best wishes
Dr Wilfred Monteiro
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