You Might Be a Lousy CEO…

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.