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5 tips for your success as CEO

May 18, 2020

Would you like to improve your results as a company manager? We share five success factors for you to achieve this.

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5 tips for your success as CEO
5 tips for your success as CEO

It remains difficult for most CEOs to know the algorithm for real success in an ever-changing world. However, a recent study by the Boston Consulting Group identified five key success factors for the CEO’s results.

21st century CEOs operate in an unprecedented dynamic context and find it more difficult than ever to succeed in their role. A recent BCG report, “An Algorithm for a Successful 21st Century CEO,” identified five components that consistently characterize successful CEOs. By cultivating these success factors and flexibly combining them into a strategic “algorithm”, CEOs can now turn the prospects of success in their favor.

The BCG study assessed CEO success in several dimensions. He assessed the consistency of more than 450 CEOs in the US and Canada from the “starting classes” from 2009 to 2011. He employed (artificial intelligence) AI and conducted in-depth interviews with 14 relevant CEOs and directors on boards of directors. Of the fully rated CEOs, only 18% “qualified” for a later round, including those who had greater success. The research team then isolated and analyzed the characteristics of this selected group and finally identified a number of five success factors.

The components of success

Success is of course a matter of definition. Gerry Hansell, BCG’s senior partner and co-author of the report, explains: “In our study, the success criteria were divided into three main sections: Great Company, Great Stock and Great Legacy. Great Company is related to a better competitive position and profitability at Great Stock it’s about offering shareholders a strong total return. Great Legacy is more subjective and responsive to the company’s future prospects. Meeting all of these criteria is no easy task, but CEOs who consistently and harmoniously use our five success factors will surely take your chances improve. “

These five success factors are:

  1. A convincing factual and convincing strategic narrative basis, clearly defined and well communicated.
  2. A selection of strategic movements with competitive advantages that are sufficient to challenge the various work teams of the company.
  3. Intelligent interactions with stakeholders who respect their expectations but redefine them.
  4. Continuous mobilization of the organization: Contact the management team directly to strengthen corporate values ​​and improve collaboration.
  5. Leave a lasting positive footprint that enables the company to adapt and rejuvenate over years.

These five components receive additional performance if they are closely integrated. Once applied and combined, they can serve as a kind of algorithm for CEOs to set direction and make strategic decisions and make the organization successful.

Katharina Rick, BCG partner and co-author of the report, explains: “The success of a CEO is almost unrelated to the original context. CEOs who inherit a bad company are just as successful as CEOs who inherit a company.” wealthy. “Another important finding was that today’s CEO prototypes have changed significantly. Roselinde Torres, one of BCG’s partners and co-lead authors, emphasizes:” Formerly a CEO in Act 1, 2 and 3 Century not really good. Today’s CEOs have to adjust their strategic steps in a completely different way, and his mandate seems to be a series of overlapping cycles rather than a series of discrete ‘actions’. “

The report looks in detail at each of the five success factors. Several common topics come together: How CEOs can combine tenacity and flexibility, how they recognize and react to trends, interact with activist stakeholders, motivate the organization and determine the pace of strategic movements.

The true yardstick for CEO success is not just short-term results: it’s about maintaining momentum throughout your leadership and even what happens to the company after you leave. “The improvements a CEO makes must be sustainable,” said Rich Lesser, CEO of BCG, another co-author of the report. “The complacency trap is real, and CEOs need to reinvent themselves and build a diverse, highly ambitious, and adaptable leadership team. We have found that the most successful CEOs are very concerned about their legacy, but not vanity is the legacy they want a thriving company that goes beyond her tenure as CEO. “

A leadership algorithm to improve perspectives

No magic formula is to be expected in the CEO’s success algorithm. This includes constant monitoring and learning, as well as the adjustment of priorities to constantly changing conditions. In the BCG sample, the most successful CEOs were able to read the information from the evolving context and correct the course quickly and flexibly. By constantly adapting the five components of the algorithm, CEOs can at least increase the likelihood of success.