Most CEOs show a serious intent to invest in the development of their people. They know that better people deliver better results. They also know that if the team is capable, CEOs can delegate many operational topics and focus their own time & energy on strategic topics, innovation, expansion & business growth.
In a recent interaction, a CEO of a large infrastructure business expressed a serious desire to develop his team. With the business topline doubling every year since last few years, CEO found himself tied down in operational reviews & decisions. It was ok until the business was small but with growth of projects it began to consume all his time. While this ensured the projects are progressing well but, on the downside, there were many strategic topics that were lying on his table for months and staring at him all the time. He feared that if he took his eyes away from the on-going projects they will get affected and he may lose reputation and projects. He was in a dilemma.
In scenarios where business is experiencing severe competition and lower growth, the situation gets more pronounced because CEOs’ need-to-focus on strategies to boost growth becomes urgent.
However, CEOs somehow continue to get overly involved in operational topics. This way of working is widespread reality and way of life for CEOs. Funnily, when CEOs are regularly involved in operations the team gets into a habit and continues to push everything up. This seem to have become organization culture, ‘that’s how things work here’. CEOs express this pain but seem to live with it because many of them do not see a way out.
No matter what your current business situation is, the operations team needs to be equipped to take responsibility, accountability and is capable of independent & prudent decision making. This is the only way CEOs can focus on topics of strategic importance, transformation, innovation & future-proofing the business.
But who will bell the cat & change this suicidal status quo? No brainer that the responsibility lies at the top, the CEO.
Some CEOs take the initiative in addressing this problem. In how they address this problem, there is a pattern & in my view this direction of solution is yielding them measurable change in the leadership. Let me also share how they can change their approach to get far better & measurable change in their organizations.
To develop people, they obviously start the development at the layers below the CEO. Senior & middle management levels are sent to leadership development programs.
For many reasons, this approach has hardly resulted in visible change in organizations because layers below have changed but leaders at the helm of it all is the same. Moreover, merely a development program for few weeks does not change people, the problem does not really get solved for the organization. At best a very insignificant number of people show some visible improved leadership behaviors.
Organizations thus must re-evaluate their leadership development approach.
In my experience, there are distinct advantages if development is initiated top-down starting from the CEO level. Let me explain how this simple change in strategy can lead to far more effective and measurable improvement across the organization.
This, however, does not mean that the sub-CEO levels need not be developed but key change in the approach is for CEO to commit to develop first & begin the change. The advantages of such an approach are many;
- Firstly, this displays an act of humility on part of the CEO which is first sign of development that they announce to the rest of the organization.
- Secondly, as said, “Lead by Example” or “be the change you want to see in others”. This act serves as an example for others. The acceptance level for change in others will change dramatically by this action.
- Thirdly, and most importantly, any changed way of working (e.g.: delegation) the CEO introduces as part of this development process percolates down easily, accepted and change starts to become visible across the layers. The change cascades down much faster, almost like you have advantage of gravity. People imitate leaders and any changed behaviors displayed by CEOs often immediately starts to influence people in the organization.
Positive cultural changes start from the top. CEOs need to challenge the common but ineffective practices followed by most organizations to define a unique success path for their organizations.
