The DNA of a modern CEO

Transcription

1 The DNA of a modern CEO holmes noble a smarter approach to executive search & interim

2 The DNA of the modern CEO 2 What does it take to be a successful CEO? Is the DNA of the modern CEO changing? Are their values, traits and personal goals different from what they were twenty, ten or even five years ago? If you asked that question to CEOs ten years ago, would their response be very different to the one you would receive today? Society has changed rapidly and therefore leadership has had to evolve. Ultimately the CEO is, and always will be, responsible for a company s success, reputation and accountable for its results. However, as the world and technology move on at a seemingly accelerating pace, every industry is changing so it s unsurprising that the role of the CEO is having to adapt. Managing change means changing how we manage Modern CEOs are embracing change. Those who are still leading top-down hierarchies are going to be left behind. The modern CEO knows how to effectively build and lead collaborative leadership teams by understanding and embracing change. But what does a modern CEO look like? In this discussion paper, we share insights and stimulate thinking on a variety of issues surrounding the DNA of a modern CEO. This paper sets out to explore answers to questions such as; What do modern CEOs look like? How do modern CEOs need to adapt to steer companies into the future? How will they lead? and How is technology impacting on the modern CEO? At Holmes Noble, we advise and work closely with the leaders of today, coaching them to ensure they re fully aware of trends and developments so they can actively make a difference within organisations.

3 The DNA of the modern CEO 3 How and why is leadership changing? At a roundtable event held in Birmingham, in May 2017, we invited some of the UK s senior CEOs and Directors, covering multiple industry sectors, to discuss the modern issues CEOs face today. So much of the world we live and work in has changed and, with it, a new breed of leader has emerged. For nearly 100 years, leadership has been a top-down game. The industrial revolution brought about scale and the only way leaders knew how to manage this scale was through hierarchy. But today s marketplace moves and changes at great speed and, the inherent slowness of the large hierarchy, is rapidly being trumped by the need for speedy, market-based decisions. Mr traditional CEO A recent study by Fortune Insiders, asked both current CEOs and rising millennial leaders to identify the talents they thought would be most important to a CEO, ten years from now. Millennial leaders put the highest priority on interpersonal skills; their prototypical leader is an inspiring coach, a compelling communicator. As one focus group participant put it; you don t tell people what to do, you empower them. Whilst current CEOs give priority to critical thinking and business and management skills as well as stakeholder management. The general feeling at the roundtable was that one person, one leader, simply doesn t have the time or resources to sift through mounds of data about their company s performance, industry, economic environment or competitors. Nor do they have the time to disseminate the right data to the right people in real time. Organisations move too quickly for that model to be effective. I think the modern CEO looks like somebody who is agile, current and relates to a wide audience. Leadership is changing so much. There is so much more demand on the CEO to be the visionary of the company and to be multi-faceted.

4 The DNA of the modern CEO 4 How are modern CEOs changing? Leaders today have to work and demonstrate values 24/7. You have to work at it on a continuing basis. You have to continue working at it if you think it s going to stay alive and well. It does have to become a part of your DNA. There are CEOs who believe, these are my values; therefore, everyone will follow these values. Most of the time when leaders communicate their business values, they haven t ensured their whole team was part of that process. Value-based leadership needs to change. CEOs and leadership teams cannot simply choose the values and think that it will become the culture. Michelle Carson-Williams, founder and CEO of Holmes Noble, suggests: Leaders need to change levels of delegation and decision making at all levels. Future leaders need to focus on guiding and communicating the vision, leading a larger leadership team and finding new ways to develop and grow them. CEOs need to depend on a solid leadership team around them that are taking on more leadership responsibilities and pass increasing amounts of responsibility to employees. The march of the millennial leader Millennials are changing the workforce and are quickly rising up the leadership ranks. By 2030, millennials will be approximately 75% of the global workforce. Although it was agreed at the roundtable event that millennial leaders are naturally fluent in technology, there are many CEOs, outside of the millennial bracket, that easily incorporate technology into their role to create a more efficient workflow. This gives CEOs an immediate advantage in business they can find answers to complex questions in seconds which also feeds their need to be more creative. Millennials seek out leadership roles where they can feel fulfilled and make a constructive difference in their business and the world. This new breed of CEO sets out to inspire their leadership teams, keeping them focused on the company s greater mission and purpose. These noble aspirations can set the bar higher for innovation.

5 The DNA of the modern CEO 5 What is in the DNA of the modern CEO? What character traits of CEOs are most admired today? Answers from around the table included: I think people s expectations are higher than ever before in terms of what they want from a CEO. They expect a CEO who is in-touch with what is going on in the world, somebody who has an opinion on political matters, who has an interest in changing society. If a CEO has credibility then it means you bring the business with you. If you are caring it means you are empathetic and human. You can relate to the fact that everybody has different needs and everybody brings something different to the table it s understanding that. I think CEOs do need to be able to relate to people at all levels. A successful leader is one that can bring the entire business along, not just the leadership team. The four values of a modern CEO that were agreed around the table: 2. Flexible and reactive Tomorrow s most effective leaders will embrace this new, chaotic world. Planning will be replaced by intelligent response (not reaction). They will proactively anticipate the next disruption and prepare for multiple scenarios. 1. Empowering Decisions will not be pushed from the central command they will be pulled from the edges of the organisation especially where team members are closest to customers and, increasingly, working directly in partnership with them. The most effective leaders will be those who embrace this new extreme empowerment while still effectively managing quality and risk. 3. Transparent The CEO is the human embodiment of a company s brand. As the person responsible for setting the tone, CEOs need to portray fairness, openness and most of all transparency. 4. Innovative and forward thinking Pursuing new creative ideas that have the potential to change the world is the job of the modern CEO. Companies that do not align core values with innovation and do not develop a winning culture will struggle in the future.

6 The DNA of the modern CEO 6 Diversity and the modern CEO It was agreed during the discussion that attitudes towards diversity need to come from the top and modern CEOs will lead from the front. Michelle Carson-Williams comments: CEOs that aim for diverse organisations, nurture environments based on inclusivity, trust, compassion and respect create pathways for advancement and open career opportunities for all. CEOs of the future understand that diversity can be transformative, driving new ways of thinking and new approaches to solving problems for customers and society. How can we encourage women to be CEOs? Among Fortune 500 companies... In the UK, female membership of FTSE-100 company boards recently reached 17% Women hold just 3% of CEO positions Women hold just 15% of board seats There is too much focus on the diversity questions such as how many women do we employ? rather than the issue of inclusion which raises more challenging questions. How many female leaders do I have? How many empowered decision-makers? Do our female employees feel included and engaged? Are we retaining them? A female director around the table from a multinational, firm added: To achieve parity for women in decisionmaking roles, men must beware of unconscious bias. We are making steady progress but we have a long way to go in seeing that women are equally empowered at the highest decision-making levels. I recognise there is no one-size-fits-all, quick-fix solution but I, and my fellow board members, get it: equality means business. Or rather with equity comes equality."

7 The DNA of the modern CEO 7 The modern CEO s commitment to life-long learning and evolving technology As technology and a new generation of workers influence the business space, leadership is changing. Modern CEOs understand, adapt and evolve with technology. They understand the overall, technological landscape and how it is impacting on businesses and their teams. Can modern CEOs drive growth with technology? Managing risk often involves ensuring your organisation complies with all manner of regulations both mandatory and voluntary codes of conduct which often boil down to people issues: Do employees understand their roles and responsibilities? Have they received the right training? Are they being measured and compensated in ways that support risk awareness and compliance? Many of the skills needed to address these issues reside with HR professionals. The subject of risk management was a popular one around the table and the top risks were identified. The youngest CEO around the table commented: There is no hiding. There s no excuse for a CEO to hide and no reason for them not to communicate. Today s CEO needs to be a transformational leader that commits to a relentless learning process, even if this means coming out of their comfort zone. In a recent survey by Forbes magazine, over 90% of CEOs agreed that IT-led innovation is essential for their business growth and that they were willing to devote substantial new capital investment to further these aims. Yet, only half admitted that their organisations were at the forefront of making the best use of new technology. Michelle Carson-Williams commented: Leveraging new technological advancements is no longer optional for those who are seeking to grow their businesses. Soon every area of our life and work will be embedded with step changes in technology and CEOs need to be at the cutting edge of each step change. A CEO from the automotive industry responded: I believe that CEOs and boards do not have a choice in the matter because technology enablement has become mission-critical to every company. From the perspective of the CEO and the board, they do not necessarily need to become technology experts. All they need to have is a clear understanding of how advancements in technology can help their business by redefining business models, operational processes and, most importantly, customer experience and engagement. One leader sitting at the table expressed concerns regarding disruptive technology: Society is no longer as stable as it used to be. It s changing and businesses are changing because of disruptive technology so you need to have a CEO that is forwardthinking and who can react quickly to these changes.

8 The DNA of the modern CEO 8 Social media - friend or foe to the modern CEO? Everyone at the roundtable event agreed that all CEOs today need to be social-media- savvy and as it s both a friend and a foe to the CEO. Corporate leaders who know how to engage well on social media, also exhibit other strengths which make them better leaders. Take Airbnb and Virgin - both companies with modern-style CEOs who are very active on social media and claim that their social activities have a knock on-effect on growth. About modern CEOs Tweets Tweets & replies Media better at empowering others 89%are 16% are 52% are 46% are 36% are 19% are better at making decisions stronger at compelling communications more influential better at cultivating networks more passionate for results Despite the positive associations between great leadership and an active social media presence, today's CEOs are tentative about social media. Views around the table included: Views around the table May 11, 2017 In the future, social-media-savvy may no longer be something that's nice-to-have for prospective CEOs. Instead, it could be a powerful selection criterion that helps companies identify CEOs who are well-prepared to lead. It may tip the scales towards more companies choosing women CEOs. Views around the table May 11, 2017 More CEOs have made the leap to communicating online to help shape their brands digitally and personalise the company. However, we are now at a point where CEOs need to truly embrace social engagement and move it up the next level."

9 The DNA of the modern CEO 9 Conclusion What is in the DNA of the future? Strong values Reactive Flexible Empowering Multi-faceted Politically aware Transparent Authentic Inspiring coach Partners with leadership team Credible Fluent in technology Diverse Social media active Innovative

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