The traits of a leader — Successful CEOs have a record of energetic, results-oriented action
Harry S. Dennis III
For SBT
A recent issue of Fortune magazine included a series of insightful articles on the general topic of CEO failures. Rather than focusing on the failure side of the equation, this month we take a look at the characteristics of the successful CEO. It’s based upon our 42 years experience with TEC CEOs. Unlike the Fortune articles, our history is with CEOs of small businesses.
Among 25 characteristics of the successful CEO that we have identified, there are four that are right at the top of our list:
First, a track record of career successes. Even when individuals are forced to leave a company before becoming successful entrepreneurs, more often than not they distinguish themselves from their peers. They are more ambitious, more innovative, more committed to “winning,” and so on.
Second, they have a previous record – regardless of their formal positions in the company — of being recognized as informal leaders. They are naturals at getting things done through others, whether the “other” is a boss, peer, or subordinate.
Third, they demonstrate a well-directed, high level of energy. Whether early in the morning or late in the evening, they maintain a pace that others envy. But with this high level of energy also comes an impatience with irrelevant detail.
That leads to our fourth characteristic of successful CEOs. They are extremely results- and goal-oriented. When things do not happen, they question, “Why?” Their tolerance for excuses is low. While they are good with ambiguity for a short time, they need to see evidence that effective choices are being made and action undertaken — to fix a problem or take advantage of a new alternative that has presented itself.
I asked Jim Burt, CEO of Wisconsin Pharmacal, a dynamic and growth-oriented Milwaukee-area firm noted for its well-known branded product “Repel,” to identify what he believes successful CEOs do. This is what he had to say:
1. They set results-oriented goals.
2. They communicate and build trust.
3. They track the course and redirect through others.
4. They plan the future and confirm goals.
5. They place winners and put people in their best jobs.
6. They organize themselves and others to get the job done.
7. They celebrate successes.
Ken Huff, former CEO of Utility Products in Milwaukee, said that by far the most important characteristic that successful CEOs bring to the party is an acute listening and questioning capability. They know how to ask questions and probe [the subject of a future column]. And, as Ken says, they don’t forget.
There are some interesting “self tests” a CEO can perform to get some feel for a success quotient. Just answer yes or no to the following. There is no score because the correct answer for each question is self-evident. But maybe, for some of our readers, it will be a wake-up call. Here goes:
— Do you set goals for your company and communicate them?
— Would your employees say that you are truly “results-oriented”?
— Did you have a track record of success before becoming a CEO?
— Do you have a high energy level?
— In past work experiences, were you an informal leader?
— Are you a good listener?
— Can you ask incisive yet sensitive questions?
— Do you accept “bad news” without losing your cool?
— Do you celebrate successes with your employees?
— Are you capable of making mid-course corrections if something is going wrong?
We could probably add another 10 questions, and another 10, and so on. Who knows what magic number is needed to cover this vast landscape of what it takes to be a successful CEO?
Let’s take a moment, however, and consider that you might be a new CEO. You are in the saddle for the first ride. Here is what our experienced TEC CEOs say are the first 12 things a new CEO should do:
1. Listen attentively to employees.
2. Analyze financial statements: current and the past 3-5 years.
3. Look at the business plan and budget. What’s the goal? Where are we?
4. Expand the level of communication immediately to build trust.
5. Review the system of measurement [non-financial].
6. Contact and determine current customer/vendor situation.
7. Determine current forecast by month for the balance of the year.
8. Focus immediately on beating the firm’s major goal that you inherited.
9. Be well-informed on all the key issues. Contact informed outsiders.
10. Put key people in jobs that are the best match for their capabilities and strengths.
11. Begin communicating new goals, direction and your culture.
12. Begin developing a long-term vision for your new company.
The successful CEO; in Wisconsin, we are privileged to have many of them. Since 1973, I have seen us weather several serious recessions, and guess what? We weather them a lot better than our cousins on either coast. I believe it’s because we know how to grow and cultivate successful CEOs. Let’s keep them all green and growing!
Harry S. Dennis III is the president of The Executive Committee in Wisconsin and Michigan. TEC is a professional development group for CEOs, presidents and business owners. He can be reached at 414-821-3340.
9-9-1999 Small Business Times, Milwaukee
The first 12 thingsa new CEOshould do:
1 Listen attentively to employees.
2 Analyze financial statements: current and the past 3-5 years.
3 Look at the business plan and budget. What’s the goal? Where are we?
4 Expand the level of communication immediately to build trust.
5 Review the system of measurement [non-financial].
6 Contact and determine current customer/vendor situation.
7 Determine current forecast by month for the balance of the year.
8 Focus immediately on beating the firm’s major goal that you inherited.
9 Be well-informed on all the key issues. Contact informed outsiders.
10 Put key people in jobs that are the best match for their capabilities and strengths.
11 Begin communicating new goals, direction and your culture.
12 Begin developing a long-term vision for your new company.
