The mindset and approaches of a successful CEO
Despite the brilliance of the role, being general manager can be an exhausting, lonely and stressful job. Studies show that, under constant pressure from the results of boards of directors, shareholders, employees or customers, many of the new appointments in this position turn upside down in the first 18 months. “What is the attitude and approach of a successful CEO?” is the question I will answer with the intention of sharing from my over 10 years of experience in this role. So what are the key points to note?
Clear strategy
This point involves careful analysis, knowledge of market forces, making bold moves in time by reallocating resources, planning mergers, acquisitions and divestments, capital expenditures, improving productivity. It also means reformulating the vision and redefining success through performance indicators such as: market share, margin, return on net assets (or other returns, as relevant), cash flow, organizational health.
Organizational alignment
It is often driven by a methodical approach to matching talents to the roles that generate the most value. It is therefore important to identify the most important roles. Subsequently, it is essential the selection of the best professionals and the creation of a talent pool to ensure the succession in the future. In addition, measuring and managing the cultural elements that generate performance increases the chances of the strategy being implemented at least twice. All of this means organizational design, modeling, team-level bonus programs, not just individual ones, and a lot of training.
The team and the processes
The management team must perform. In order for this goal to be achieved, the general manager must calibrate the individual relationship with each manager, keeping the distance to be objective, but being close enough to give confidence and receive loyalty. In addition, the general manager is good to take stock regularly and to improve the meeting protocols, the quality of the interaction and the dynamics of the management team. The Director-General shall also ensure consistency between the decision-making processes and the allocation of resources by the Executive Directors. It is important for the CEO to ensure that management processes reinforce priorities, advance execution and refine strategy.
The role of the Board of Directors
A defining aspect is the promotion of a visionary agenda that goes beyond the “traditional” roles of the Board of Directors so that it truly provides expertise in strategy, mergers and acquisitions, technology, resilience and external communication. The role of the CEO is to correlate the efforts of the top managers with those of the members of the Board of Directors, to build relationships based on trust and transparency with them and even to facilitate their connection and collaboration with the CEOs. In addition, the CEO must ensure the efficient functioning of each member of the Board of Directors by creating learning opportunities on topics such as new technologies, emerging risks, changes in competition, etc.
The external stakeholders
Relating the company’s activity to the common good it generates for the people in the team and the community is very important. From this point of view, the general manager must make efforts to create new jobs, respect ethical work practices, and reduce the impact on the environment caused by the company’s activities. Over 75% of customers say they would buy the products and / or services of a socially responsible company.
In conclusion
It is important for the CEO to interact with customers strategically, to be in touch with the most important investors, to allocate time for contribution in business community forums, to get involved in industry representative associations, as well as in the relationship with regulatory bodies.
Linking the Board of Directors with the top managers, the CEO may work with them to create effective models of operational risk and corporate governance that anticipate potential crises and prepare responses through role allocation, stress testing, action plans and emergency communication.
Responsible for the performance of an entire company the role of general manager is not at all comfortable. Therefore, the human and professional quality of the “leader of leaders” in the company matters. Definitely those appointed to this position can increase their leadership skills by understanding and adopting the mentalities and practices that define the excellence of a general manager.
Alina Făniță este Senior Partner la PKF Finconta. A lucrat cu companii multinaționale sau firme antreprenoriale din domenii diverse de activitate, pentru a le oferi servicii de audit financiar, due diligence, restructurări de grupuri, audit intern și alte servicii conexe activității de control intern. Este membră a celor mai prestigioase asociații profesionale din domeniu: ACCA (Association of Chartered Certified Accountants), CECCAR (Corpul Experților Contabili și Contabililior Autorizați din România), CAFR (Camera Auditorilor Financiari) și IIA (Institute of Internal Auditors). A absolvit EMBA Asebuss la Kennesaw State University, a fost trainer pentru cursuri IFRS și este invitată ca expert la numeroase conferințe de business. alina.fanita@pkffinconta.ro
