Seven Ways a CEO Can Hurt Your Organization
There are organizational leaders that are what I call “empty suits”. They look the part, they sound like they know what they are doing, they have impressive resumes, and yet their track records for organizational results are mediocre at best. Years ago, there was an article (author unknown) that outlined the characteristics of Chief Executive Officers who were unable to help their companies reach set objectives in spite of the positive accolades for their hiring. The article was written to open the eyes of Boards of Directors, who are responsible for hiring and managing CEOs. More recently, much has been written about the less than stellar performance of many CEO’s and the devastating impacts on their companies. I have updated the original article by adding certain characteristics that I have experienced which further defines the seven points. The presence of any one of these seven points should be enough to cause concern to the Board, and any two or more should be enough to cause a Board to take corrective action. I offer up the “Seven ways a CEO can hurt your organization”.
- Poor Leadership
- Lacks the confidence of key personnel
- Hires/retains weak people in key positions or fails to fill key roles
- Fails to grow/retain successor(s)
- Focuses on their personal benefits, not those of the organization
- Poor Vision
- Lacks clear understanding of where business is going
- Lacks focus on organization and priorities
- Is unable to strike key partnership relationships
- Poor Results
- Has major and sustained poor financial performance or missed targets
- Shows major loss of market share or competitive position
- Is unable to forecast timing/nature of recovery events
- Is more concerned with being “politically correct” than attaining measurable results
- Poor Understanding of Business
- Misses key industry trends and changes
- Lacks understanding of fundamental profitability factors
- Cannot crisply define what it takes to win
- Poor Work Habits
- Does not put heart and soul into business
- Sets bad example/role model for others
- Is not viewed in industry as a key player
- Hoards information to increase power base
- Poor Management Style
- Uses the “demand and control” management style
- Allows top management infighting, not working as a team
- Demonstrates unpredictable decision processes, leaving organization too scared to act
- Starves key programs but spares sacred cows
- Poor Board Candor/Communication
- Controls flow of information/agenda, preventing focus on or sufficient time for critical issues
- Does not allow ready access to VPs and other key individuals
- Keeps favorite non-strategic programs or perquisites out of board review and approval process
- Loads the Board with special interest persons/cronies