What every new CEO should know

A view from our Leadership Consultancy Practice Lead - Simon Quinn

From working closely with CEOs over twenty-five years, Moon Executive Search has gained significant insights into what it takes for a CEO to successfully transition in to their first role. Many CEOs new to the role can often struggle initially with the heightened visibility and pressure on their every decision. Being the CEO elevates a leader and can lead to sense of overwhelming responsibility for shaping the future of the organisation.

In this article, Simon Quinn Director of Moon Leadership Consultancy, explores why being an effective CEO is about more than just about the bottom line and highlights some key lessons for all new CEOs.

Leaders don’t need all the answers — they need the right questions: A new CEO does need to learn fast, but it is crucial they lean into functional experts in their senior team as well. The tendency is for a new CEO to spread themselves too thinly, but they must question effectively, listen intently, and learn quickly. If you think you haven’t got the right experts, recruit some and give them the space to deliver.

Your ’think’ and your ‘do’ should be in balance: One of the key challenges for all new CEOs is carving out time in their busy diaries to sit and think. However, this is key to determining future messaging to the senior leadership team. It takes time to build a clear vision that aligns with long-term purpose, not just short-term gains. Thinking time is your friend.

Establish your style and stick to it: Consistency and authenticity is key. Don’t try to be something you aren’t – you were hired for a reason. A new CEO cannot hope to lead their team effectively if they are unable to set a clear vision and repeat their messages consistently. Switching focus and agendas will only lead to confusion, so be relentless in your message and be prepared to repeat it…..a lot.

Listen, Understand, Change – in that order: Looking for quick wins is fine, but guard against changing too much, too quickly. To be credible, a new CEO must truly understand their business, whether you have been internally promoted or you are entirely new the business. People trust leaders who instil confidence and the quickest way to achieving that is appreciating that whilst radical change can be effective, being more nuanced is often more sustainable. So, listen first, act second.

Resistance is part of innovation — embrace it and keep going: Teams can sometimes be loyal to the previous CEO and uncomfortable with the idea of having a new leader. Accepting employees will be in different places on the change curve at the same time (often around their own performance anxieties), ensures a new CEO can plan the cultural shift, new priorities and any strategic pivots with push back in mind. To truly innovate, you have to embrace any resistance.

Communication over Silence: We are yet to meet the CEO who over-communicates. New CEOs should aim to be visible, be open and bring emotional intelligence to each conversation they have, as silence will lead to a culture of fear and suspicion. Sharing what you can builds trust and transparency,

Instinct versus Data: Most successful CEOs lean into data to inform their decision-making, whether it be financial, operational, customer or web analytics, market research, or regulatory. However, having a good grasp of data should never put a CEO’s instinct in the shadows – the key here is to balance facts with your gut and use your moral compass to make the best decision. Often, these decisions can be the boldest, smartest and easiest to engage the team with.

‘Accepting that you won’t get everything right and being honest enough to publicly own your mistakes is a powerful message to give your team. Vulnerability isn’t a weakness, and it ultimately builds leadership maturity,’ observes Simon, adding ‘mistakes are inevitable in leadership, but owning them and learning from them helps build the truly exceptional CEOs of the future – those CEOs who display resilience and growth and inspire those around them.’

Finally, at Moon we believe that all new CEOs should ask themselves a series of key questions when embarking on their journey:

·        What do you want to achieve? Develop a new product, enter a new market, drive innovation, or perhaps list the business?

·        What do you have to do to get there?

·        What could get in the way of achieving it?

·        How do you hold yourself accountable?

If you believe you're ready for a CEO role and would value a confidential conversation with our Leadership Team about your board’s dynamics or performance, we’re here to talk.

You can reach us welcome@moonexecsearch.com or 01275 371 200.

See our case studies here: Moon Leadership Consultancy Case studies