A must-read - this book is unlike the mainstream anecdotal leadership books out there.
4 Stars for the overall content and 1 additional star for the fact that every claim made in the book has been statistically derived from ghSMART’s database of 17,000 CEOs and C-suite executive assessments, 13,000 hours of interviews and two decades advising CEOs and executive boards. GhSMART is the authors' leadership advisory firm, which grooms budding CEOs.
Key takeaways:
1. Authors have developed the concept of "CEO Genome" i.e. they have defined 4 qualities of high-performing CEOs:
a. Decisiveness
b. Reliability
c. Adaptability
d. Engaging with stakeholders
2. CEO Genome #1 - Decisiveness
3 lessons on decisiveness:
A. Lesson 1 – make decisions faster
• Make the complex simple (use mental models)
• Give a voice, not a vote (involve people in decision-making)
• Align aspirational v/s transactional goals, if there is misalignment, it will create problems (aspirational – when company is successful, what will others say. Inspirational – underlying goal in a specific situation)
B. Lesson 2 – make fewer decisions
C. Lesson 3 – get better after each decision
• Perspective-getting (empathy). One standout point is stronger CEO candidates OFFERED mentorship rather than receiving them
• Engage for impact:
o Communicate – Rule of 7 – any message has to be repeated 7 times before an organization has any hope of hearing, use various media – memo, video, blog etc.
o Break fown the sound barrier
o Marry the corporate, date the field – get out of your office, visit the site
• Test your ability of “engage for impact”
1. Do your teams feel that your organization has too many priorities?
2. Do people leave performance review meetings you conduct with them unable to clearly articulate their
strengths, gaps, and what’s expected of them?
3. Do you move slowly to determine how to handle a loyal team member who is unlikely to fit with the
company’s future?
4. Is the word nice in the top three adjectives used to describe you?
5. When considering a decision, is your first thought about how it will impact relationships?
6. Do those around you (your team, your boss) say you avoid or minimize conflict?
• Reliability
o People who are organized, disciplined i.e. have high conscientiousness have higher probability of getting management roles
o High Reliability Organizations (HRO) – eg. airlines
o Use a “shared language” – for instance Pfiezer had used “Own it”. To test if people are aware, ask 50 people about the shared term, if they are aware, this means that its well-known
o Reliability tool – scorecard – should contain mission/ vision, top 5 priorities. Example is given of Advanced Infusion Solutions
o Assess your reliability
1. How consistent was I this week in my interactions with customers, colleagues, senior management, and
2. the people who work for me?
3. When am I thrown off my game? Is it situation specific? How do I manage those situations?
4. Does everyone on my team understand what is expected of them? Do they own their results? Do they
5. embrace responsibility and hold themselves accountable?
6. What are my boss/colleagues/clients trying to do? And how can I help them get there?
7. What expectations do my stakeholders have of me that aren’t being openly discussed?
8. What am I expected to deliver? Have I written it down? Have I shared it with my boss, peers, and team?
9. How often was I on time for meetings in the last week?
• Adaptability –
o Jim Smith, CEO of Thomson Reuters (world’s largest financial news provider) started as a journalist
o Actively seek out novelty – build new habits, skills, experience
o Step into new, unfamiliar roles to broaden experience/ develop leadership skills
o Example – Intel shut down memory chip business & pioneered microprocessors
o Build network outside your company and field
o Do “pre-mortem”
o Beware of cognitive overload
• Career Catapult – Career trajectory is a function of: Getting results in the right roles AND getting noticed for those results
• 3 stages of CEO’s path
o Stage 1 (0 – 8 years) – go broad i.e. become the ultimate generalist
o Stage 2 (9-16 years) – Go Deep – general management roles
o Stage 3 (17 – 24 years) – go high – while many CEOs will remain effective functional leaders, middle managers or even P/L operators, future CEOs will differentiate themselves as enterprise leaders
• Types of Career Catapults
o #1 – the big leap – thrive in a new, uncertain environment; navigate a complex terrain. Roughly 50% of the leaps took place within the first 8 years of career. This results in deepened appreciation of the broader set of functions that one will need to manage
o DIY Big leaps –
Seek out cross-functional projects
Get involved in M&A transactions
Volunteer to lead or participate in business initiative
Ask how you could best contribute to the business.
• Ask your boss for additional responsibilities, especially those that will add to your skill set.
Proactively look for and solve problems before you are asked.
Make a habit of saying yes to greater opportunity, even if you don’t feel ready.
Seek out relationships that are broader or more senior in your customer organizations than what is customary for someone at your level.
Look at your personal life as a way to practice big leaps and build new skills: Take on civic leadership roles, from city government to the school board; volunteer in a leadership role or even form a new nonprofit; look for public speaking opportunities if that’s a big development area for you.
o #2 – the big mess – underperforming business unit, recalled product, take the job no one wants
o #3 – go small to go big – go small means either work in a small company or start “small” – build processes from scratch. Vyomesh Joshi – CEO – 3D Systems (3D printing)
• Career blowups – curse or crucible? Guideposts
o Having different kind of blow ups are ok
o How you handle the blow up > blow ups
o How to catapult without crash-landing
Align supporters
Align senior management
Ensure you have resources – budget, talent
Stay connected
o Stand out – how to become known –
pick your boss – don’t make them feel attacked, don’t leave them upstaged
mirror your boss’ language, goals
o build your tribe (sponsor) – share aspiration with sponsor, ask for advice on topics relevant to her, make easy-to-fulfil requests
• Build a bonfire – rapport with boss’ boss
• Ask for what you want. Note – pre-requisite is that you must have “EARNED THE RIGHT TO ASK” by delivering a strong performance. If you are unsure of what you want, still ask
• Your tone should be that of aspiration, not desperation
• Rock the boat – productive conflict
• Look & speak the part (author talks about Lynda Spillane – public speaking coach)
• You get fires on results but hired on perception
• Interviews
o Foreign accent – CEOs with foreign accents are LESS LIKELY to be hired
o Pretentious language is a put-off
o Management platitudes are a turn-off
o We v/s I
• How to be effective
o Meaningful numbers – quantifiable results, comparable data
o Bonafide, vivid stories
• Talking points :
o Industry experience – been there, done that
o Being a general, not a foot soldier
o Business acumen
• 4 archetypes
o Sky’s the limit (elon musk)
o Lean, mean operational machine (focus on efficiency)
o ER surgeons (turnaround expert)
o Safe pair of hands (reliable)
• Threats (encountered upon getting the role)
o #1 – ghoul in the supply closet – gap between board’s expectation v/s business reality – bring such problems to the Board’s attention within 6 months. Else, it will become your problem
o #2 – entering warp speed
o #3 – amplification & permanent spotlight – adapt your leadership style, fine-tune your body language, your smallest moves will create ripple effects, every gesture is profound, your words are no longer musings, casual thoughts, banter. They are declarations with the power to shape the future
• Lever 1 - culture shaping –
o How consistently you articulate & model the behaviors you seek
o Where you put your time and attention
o Whom you hire, fire and promote
• Lever 2 – financial strategy – capital allocation decision, investing capital, cash conversion cycle, projected capex
• Lever 3 – corporate diplomacy
• 1 of the main CEO Failures – broken board relations – failure to manage the Board
• Hence, develop a relation with Board. Pose questions to the directors
o What excites you about being on the board
o How did you get connected here
o Where have you focused your time and efforts in the past