Do you Have What it Takes?

Key Benchmarks:

"Focus on a few key objectives ... I only have three things to do. I have to choose the right people, allocate the right number of dollars, and transmit ideas from one division to another with the speed of light. So I'm really in the business of being the gatekeeper and the transmitter of ideas." Jack Welch

Current State of the Business: CEOs in the Consulting & Advisory Industry

Publicly traded firms deal with variables different than those privately held. Shareholders maintain a piece of the company’s assets and profits which require public disclosure. “The main advantage to private companies is that management doesn't have to answer to stockholders and isn't required to file disclosure statements with the SEC.” (Investopedia, 2016) The consulting and advisory industry aims to offer its customers strategic thinking and guidance services in order to enhance their bottom line. A CEO in a publicly traded firm within this industry must be able to assess, identify, and manage the risks of its stakeholders. The professional services provided to customers are tied directly to the experience, implementation, and success of the company’s leadership. Upon assessing the industry, a list of the benchmark criteria for an ideal CEO can be seen above and examined in further detail.

Situational Leadership

A CEO deals with a variety of situations, people, and circumstances that all alter the way in which they respond to their environment. In order to be the most effective in their development and implementation of systems or organization structure; they must be willing to switch their behavior based on the response from their stakeholders. By shifting their leadership style to their followers; they can drive the high-quality execution and operational excellence required in order to clearly communicate directions/expectations

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Historically, serving in a CEO role requires a variety of “different situations demanding different kinds of leadership.” (Northouse, 2016) These requirements demand a CEO to be able to compromise a balance of both directive and supportive dimensions; be ample to the needs of all stakeholders; and understand that if communicated correctly, their presence can lead an organization to success. “Based on the assumption that followers’ skills and motivation vary over time” (Northouse, 2016) situational leadership lends itself to a CEO’s needs to change or promote a culture that allows for continuous improvement and commitment to the quality provided.

According to Jack Stahl, a former executive at Coca-Cola and Revlon, found the best leaders to be seen as situational. “They are able to step into any circumstance and recognize whether they need to engage at the strategy level or dive into the nitty-gritty.” (Prewitt, 2011) Stahl told a story about his mentor and former CEO of Coca-Cola, Doug Ivester. “Ivester’s effectiveness as a leader derived from his skill at combining high-level oversight of the organization with the ability to delve into detail when necessary.” (Prewitt, 2011) As a CEO, the ability to assist people in focusing on the details frees up the ability to worry on items on a larger strategic perspective. It creates a scenario where communication of the overall message can be disseminated across the organization to all people with the largest inclusive success.

“The best CEOs only micromanage teams that need micromanagement," said Marshall Goldsmith, a leadership consultant and co-author of What Got You Here Won't Get You There. (Stern, 2015) “CEOs that provide structure and direction to people who need this guidance are offering effective situational leadership. As Warren Buffet has said on the role of a successful CEO; the goal should be to get out of the way and let them run their business.” (Stern, 2015) By managing the execution by delegating work to maximize productivity, a CEO will exceed goals and improve company performance.

Emotional Intelligence

A CEO must have the ability to control their emotions and the emotions of others. “By joining intelligence, empathy and emotions, a CEO can enhance thought and understanding of interpersonal dynamics.” (John D. Mayer, 2008) Application of these skills can allow them to problem solve and think through complex situations involving their organization and stakeholders. “Goleman indicated that EI accounted for 67% of the abilities deemed necessary for superior performance in leaders, and mattered twice as much as technical expertise or IQ.” (Goleman, 1998)

The ability to influence and negotiate effectively to arrive at win-win solutions is key skill for a CEO to win business and trust of their stakeholders (specifically in an industry like consulting). Communicating and presenting effectively, listen actively and attentively to others, and conveying genuine interest are primary skillsets that can be assessed through someone’s level of emotional intelligence. “Workers with high EQ are better able to work in teams, adjust to change and be flexible. As the workplace continues to evolve, making room for new technologies and innovations, these qualities may become increasingly important.” (DeLeon, 2015)

A CEO must lead change and innovation by demonstrating emotional resilience, managing change by proactively communicating the case for change and promoting a culture that thrives on change. A leader must lead by example. A successful CEO needs to be able to articulate their ideas clearly, or people will not be able to follow the leader. CEOs must acknowledge difficulties and celebrate in the teams’ successes by listening to the needs of their stakeholders. Emotional intelligence is a strong driving factor in a CEO’s ability to accomplish the company goals and build long-lasting relationships.

Vision for the Future

“From the critical tasks of driving a vision and inspiring innovation via collaboration to creating a culture that fosters talent and investing heavily in its workforce, tomorrow's business leaders will need skills and approaches that meet the expectations of a new workforce.” (James O'Brien, 2014) The resilience test of a CEO will be in being able to reinvent the market, industry, and organization in order to transform the future vision of the company. A variety of skills will be necessary to find new solutions and implement them effortlessly. Managing uncertain risks and embracing the impossible tasks ahead of the organizational will generate value.

Being emotionally intelligent in these situations will eventually lead to a stronger relationship between leadership and its stakeholders. According to Michael Mahoney, President and CEO of Boston Scientific, “good leaders put their teams first and create an environment where employees feel empowered to share ideas and feedback. Invest in your people and they will be invested in your business.” (Christopher Tkaczyk, 2014) This investment utilizing situational leadership and emotional intelligence will enable a CEO to excel within an industry targeted at providing professional services in an evolving environment.

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