You’re the
boss. The CEO. The Chief.
The Head Cook & Bottle Washer.
You want to grow your business the right way. That involves what you don’t do as much as what you actually do.
So, I’m
going to talk to you about some blunders that CEOs make. Before I start, don’t
think for one minute that this writer has not made plenty of mistakes, goofs,
blunders, and done some pretty dumb things in his time. Therefore, I know from which I speak. And if you are doing some of these things
listed here, then frankly, you might be a lousy CEO.
So, don’t do these things. Don’t
even think about doing anything remotely similar to these things. You know better. You’d think most CEOs would know better. I shouldn't even have to mention this stuff,
yet I see CEOs – prominent celebrity CEOs
as well as Small Biz CEOs – do these things all the time. It makes me nuts. So, I want you to look at these blunders, and swear to all that you hold sacred that you will not make these
mistakes.
Otherwise,
you might be a lousy CEO if…
·
You believe your glorious past
performance guarantees future success
Yeah, you
were a hot shot in college. Maybe such a
hot shot that before you finished college, you figured out how to make a lot of
money. Your academic and early business
achievements may have gotten you to the executive table, but they are not going
to keep you there. You have to continue
to learn, adjust, adapt, and think on your feet. When a business crisis or challenge arises,
no one is thinking about the awards you won back in the day. Your past glories will make for great
retirement stories someday, but a reputation earned years ago will not help you
solve today’s challenges. You not only
need to stay current, you need to stay ahead.
·
You think just because you know some
things, you know everything
You got to
the position you’re in because you are smart.
You know some stuff. You know
enough of what’s needed to be known to be a CEO. Congratulations. That’s pretty good, and you should be proud. But, I am sorry to say, it does not qualify
you as Top Level Genius and Overlord of the Business World.
Typically,
CEOs of new businesses know a lot about their business’ industry, products /
services, and marketplace, but maybe not so much about the nuts and bolts of
leading a business. Older businesses
often seek more seasoned leadership, people who know the details of what it
takes to run a business in practically any industry, but may not know all that
much about the widgets their company produces.
To hear a
leader speak publicly about a business matter or a product matter, and show a
lack of understanding is damaging to the business as a whole. It’s embarrassing. Bottom line, you look like an idiot when
you delve into the deep end of the pool of areas where you lack expertise. Resist the temptation to do so. Keep this thought in mind as we slide into
the next point.
·
You still feel like you have to have
a hand in every aspect of the business
You’re the
CEO, not because you can do each job better than everyone at the
company, but because you can do one
job better than everyone else. While
everyone admires a “roll-up-your-sleeves-and-work-side-by-side” kind of leader,
the fact is, your business should not need you to close new business, correct
errors, sign checks, answer phones, stuff envelopes, or any other day-to-day
chore. Not that it’s beneath you; it is just
not the best use of your time. The best use
of your time is helping the company establish its place in the market, and creating
a positive work environment for employees.
Here’s the
key to delegating: hire well. In every
department. In every position. If you take the time to hire well, most of
the hard work is already done. Hire a
great CFO and let him or her do the financial job. Hire strong heads of marketing and sales, and
get out of their way as they bring your business to customers. Delegate and Trust!
·
You don’t play by the rules of the
game, and seek to circumvent them for your own gain
It wasn’t
easy for you to become CEO of your business, and no doubt there have been a lot
of blood, sweat, and tears of joy and sorrow as you made that climb. But more than likely, you did it the right
way, and you impressed the right people.
So now that you’ve made it, don’t get cute and see what you can get away
with. Just don’t. Time and time again, you read in the business
pages about this or that CEO, either diverting funds, or hiding accounts, or
fudging documents. All of these
so-called leaders were once honest, hard-working, talented, visionary people
like you. But many of them got what my
mother would call “too big for their britches.”
It’s typically not just the CEO who suffers when caught playing loose
with the rules. Often, it’s the entire
business that pays the price, and it impacts employees and their families.
·
You mistake your employees for
friends
Compassion. Loyalty. These are admirable human traits, especially
for those in leadership positions. But
these traits can sometimes blur your business sense when it comes to
employees. It is possible that solid,
dependable employees outlive their usefulness.
It sounds cold, but at some point it makes business sense to replace the
long-standing employee with some combination of quicker / better / cheaper.
In a family
business, this sensitive issue becomes even more so, because not only is
someone losing a job, but they can’t help but feel they are losing some
standing in the family, as well.
As a CEO,
your first priority is your business. So
if making personnel changes to long-term employees who may also be members of
ownership’s family is warranted, then that is exactly what you have to do. Suck it up.
Do it, get it done with, and move on.
You can’t let a problem linger, or allow performance to deteriorate,
simply because of personal feelings. I know it is easier said than done. I've been there! I waited far too long to do what had to be done. I felt so much
better afterwards. I looked myself in the mirror and asked: “why did you wait
so long?” The business thrived, my managers were much happier. They had fewer
problems to deal with so they could get the job done!
·
You’d rather “do” than “lead.”
There is a
big difference between working IN the business (making sales, running projects,
installing new shelving in the warehouse, taking over when something doesn't go
well) and working ON the business. Planning for future growth, thinking about
new products and markets, giving your team what they need to execute well,
understanding the financials inside and out – all of these things are what
propel you and your business forward. A lousy CEO has their fingers in
everything. An effective and successful CEO has just one finger on the pulse of
the business.
·
You worry more about the day-to-day
than the long-term
With your
plan in place, it is the responsibility of your management team to execute the
plan. You have the metrics to measure progress, etc. Trust them to do the job! As CEO it is
your responsibility to look out over the horizon to see what the changes and
challenges will be. If you delegate properly and let your people do their jobs
you will have plenty of time to do this, and do it well.
