Show If you were to narrow down the ideal qualities of a CEO to five items, what would you choose to include? Many would consider leadership, confidence or communication: these are certainly important CEO qualifications. But, do they make a good CEO? Maybe not: for example, according to research published in Harvard Business Review, confidence will make a CEO twice as likely to get hired, but it doesn’t seem to impact how well they do the job. Conversely, a good CEO is someone who’s capable of juggling several critical duties and also remain trusted and respected decision-makers by others – particularly his or her colleagues and employees. To do this, and sustain it, you need to possess or build those less-than-tangible characteristics. So, if you intend to become a good CEO, or if you’re trying to get even better at your job as the first in command, develop these five important skills. Here are 5 qualities of a CEO:ForesightForesight means having critical thinking when it comes to future planning and possibilities. It’s a characteristic that’s useful to all of us in our work and personal lives. But, for CEOs especially, it’s twice as important. You’re dealing with a lot of money, investors and business activities – usually all at once – and you’re also responsible for steering the company in the right direction. Having the ability to forecast what could happen in a few months or even years from now, and prepare for the possible outcomes, is one of the most invaluable characteristics of a CEO. And of course, sometimes, it’s about making the right decision, even if it’s counterintuitive. For example, Shopify CEO Tobias Lütke (recent controversy aside) made a smart move in deciding to consciously slow Shopify’s growth in order to keep it manageable for him. So, in order to have better foresight:
AdaptabilityThink of the story of Blockbuster, a once fast-growing, international company worth billions that filed for bankruptcy protection in 2010. Despite its CEO John Antioco making some efforts to change the business model and compete with growing threats such as Netflix and Redbox, BlockBuster as a company (and its subsequent leadership) was slow to adapt and never adjusted its established methods of making money. This isn’t just a lesson in adapting to changing markets or, in this case, the digital revolution. It’s also a matter of adapting to the circumstances around you, i.e. the frustration of board members about declining revenue, the controversies or the conflicts that may appear occasionally, and more. You need to adapt your strategy to ensure buy-in from the right people at the right time. This would be an indication that you possess one of the important qualities of a CEO. So, to be more adaptable:
COVID-19 has shifted the way we work – and some of it, permanently. Our New World of Work survey found a great deal of uncertainty about the road ahead, but that’s not necessarily a bad thing. Learn more in our in-depth report ReliabilityAny good employee, no matter their rank, needs to be reliable. But, we’re all human: we may promise something we can’t deliver, or make the wrong decision in a critical matter. The problem is, when CEOs exhibit these behaviors, even rarely, they risk losing the trust of important people (namely their employees and the board of directors). That’s why a CEO should strive to be reliable all the time. It’s one of the most important qualities of a CEO. Of course, this might not always happen – even generally popular CEO Elon Musk has drawn fire for possibly breaking laws that protect unions and alienating many of his employees. This may hurt his reliability in the eyes of many people, as he was often considered a leader with a solid public image who cared about his company’s employees. So, to be reliable:
TeamworkDoing things autonomously is a behavior often associated with people of power, those looking down on everyone else from a watchtower and making decisions on their own. But, in real life, this is seldom the case for a smart CEO – there’s a great number of people whose input you need in order to make proper strategic and people decisions. Most CEOs know how important it is to consult with your C-suite team and even your lower-level employees. This is one of the qualities of a CEO that involves active listening, posing the right questions and asking for feedback, and often also delegating work to your colleagues. As HR expert Hung Lee recently told us in an interview about CEO recruiting challenges: “We all interact with others in our work and we need to trust them to a certain degree to deliver for us.” So, to make sure you can take advantage of teamwork:
Need to post jobs to build your executive team? Try out the top executive job boards. DecencyLast but not least, decency: a trait that can greatly help you be a better CEO. A significant part of a CEO’s job is relationship-building; with shareholders, investors, employees, and the public. It’ll be much easier for others to trust you enough to understand your vision and help you realize it, if you show genuine decency and care toward them. And that, of course, doesn’t only mean being a good person. It’s about showing compassion and understanding, and also being alert for how different factors impact your employees or the public. What happened with former Uber CEO Travis Kalanick is an example to avoid: he was accused of allowing a toxic culture of sexual harassment inside Uber. This cost him his job and cost other people a lot more. So, to show your decency toward others:
But… what makes a successful CEO is more than a listOur list of the top qualities of a CEO is by no means exhaustive. Leading an organization is a complex job that demands all kinds of skills. What’s important is to seek out the feedback and advice you need to develop all critical qualities of a CEO. So, whether you want to be the next Bill Gates, Steve Jobs or Mark Zuckerberg is up to you. Learn about how to become a better CEO by studying examples of leadership to emulate and examples to avoid. And remember, the best CEOs are the ones people want to work with. With the five traits featured here, you’re well on your way to inspire and retain your best employees and stakeholders.
A CEO should have a clear direction in which they want to steer their business. Ambition and optimism are good things when grounded in reality, and the head of a company needs to believe in those goals. Being able to inspire others to buy into your vision is an important tool in leadership. What are the skills required to be a CEO?Skills needed to be a CEO include sociability, teamwork, learning new things, creativity, time management skills, erudition, and strong communication skills. To find the most talented employees in the coming years, you will need these skills for you and everyone on your team. What hard skills should CEOs have?CEOs must communicate with their employees using concise, easy-to-understand language, and they need to know how to foster collaboration and open-mindedness among their subordinates to grow the business. |