Seven Surprises for New CEOs
The "Seven Surprises for New CEOs" is a concept introduced by Michael E. Porter, Jay W. Lorsch, and Nitin Nohria in their 2004 Harvard Business Review article. The concept highlights the unexpected challenges that new Chief Executive Officers (CEOs) often face when transitioning into their roles, offering insights into the realities of the position and providing guidance for effectively navigating these challenges.
The Seven Surprises
- You can't run the company: New CEOs often find that their ability to make significant changes or direct the company is limited by the existing culture, bureaucracy, and various stakeholder demands. This surprise underscores the importance of working collaboratively with others and influencing change through leadership and persuasion.
- Giving orders is very costly: While CEOs may have the authority to issue directives, doing so can come at a high price regarding morale, employee engagement, and organizational culture. New CEOs should focus on fostering an environment of open communication and collaboration, encouraging employees to take ownership and initiative.
- It is hard to know what is really going on: As the top executive, CEOs may find it challenging to get accurate, unbiased information about the organization's performance and issues. Building a trusted network of advisors and fostering open communication channels can help new CEOs gain a better understanding of the true state of the organization.
- You are always sending a message: CEOs are under constant scrutiny, and their actions, decisions, and even body language can be interpreted as signals by employees, shareholders, and other stakeholders. New CEOs must be aware of the impact of their actions and strive for consistency and transparency in their communication.
- You are not the boss: Despite being the highest-ranking executive, CEOs still answer to the board of directors, shareholders, and other stakeholders. New CEOs should work on building strong relationships with these groups and understanding their expectations and concerns.
- Pleasing shareholders is not the goal: While it is essential to maintain shareholder confidence, focusing solely on short-term financial performance can undermine the long-term health of the organization. New CEOs should prioritize sustainable growth, innovation, and overall organizational health.
- You are still only human: The demands and pressures of being a CEO can be immense, but it is crucial for new CEOs to remember that they are not infallible and cannot do everything on their own. Building a strong support network, delegating responsibilities, and maintaining a healthy work-life balance is essential for long-term success.
In conclusion, the "Seven Surprises for New CEOs" offers valuable insights into the often unanticipated challenges new CEOs face when stepping into their roles. By understanding and addressing these surprises, new CEOs can better navigate the complexities of their position and lead their organizations more effectively.