American CEOs are dropping like flies. Boards, armed with new federal rules and stock exchange requirements coming in the wake of the corporate scandals of the past few years, are getting rid of underperforming CEOs at record rates. This trend is all the more notable because it's happening during an improving economy and stock market.
However, the real reasons for the CEO bloodbath are being overlooked. Analysts pin the bloodbath on the CEOs. But it's not just the CEOs who are failing. Boards are failing too. Working with thousands of leaders worldwide for more than twenty years, I've learned that there is a "spiral of doom" in the relationship between many company boards and their CEOs. Most boards are clueless as to what leadership skills are needed for CEOs to succeed. So they hire clueless CEOs. Clueless boards hiring clueless CEOs -- it's the classic spiral of doom.
The reason boards and CEOs misunderstand leadership is that recently there has been a tectonic shift in leadership skills CEOs need to succeed. In the 80s and 90s, the autocratic CEO reigned supreme. Many companies were like slow-moving ocean liners with autocratic captains giving orders to mates and mates giving orders to the crew. But today the combination of globalization and new, differently-manageable generations coming into the workforce is creating the need for new kinds of leadership. CEO leadership is no longer like piloting an ocean liner but like white water canoeing that calls for flattened organizations that can change rapidly and accurately, decentralized decision-making, motivated employees, and inspiring relationships.
The era of the autocratic leader is over. Yet most boards know no other way of leadership but autocracy.
Here are three things boards and CEOs can do together to stop the spiral of doom.
(1) Be aware of the crucial differences between autocratic leadership and the new leadership. It's easy to spot autocratic leaders. They come with a "my-way-or-the-highway" attitude. They're long on order-giving and short on listening, great at micro-managing and poor at motivation, great at caring for the company's results and poor at promoting the welfare of the people who must achieve those results.
The new leaders, on the other hand, ask a lot of questions. They consult with people rather than command them. They have a passion not only for achieving results but for promoting the well-being of the people who must achieve the results. They listen well. They have the courage to allow others to fail. They challenge people to be better than they think they can be. They are continually enhancing the leadership skills of others. And they understand that rewards and punishments are the lowest forms of leadership.
(2) By all means, don't hire autocrats. Select CEOs who are skilled in the new leadership. This means taking great pains in the interview process to have candidates talk about their leadership philosophy, ways they have manifested that philosophy, and ways they intend to manifest it as a CEO.
(3) Continually monitor and evaluate CEOs on how they're carrying out the new leadership activities. Boards and CEOs must put into place comprehensive and systematic leadership processes. They must hold themselves accountable for those processes. Board meetings must be consistently devoted to leadership issues. When CEOs report to boards on the state of the company, they must also report on the "state of leadership" -- showing how leadership is getting results and how the leadership capabilities and responsibilities of their senior leaders, middle managers and small-unit leaders are being constantly upgraded.
Autocratic CEOs are maestros at getting the wrong results or the right results in the wrong ways. Boards who bring them on buy a ticket to ride on the spiral of doom.
The time is now for boards and CEOs to get off the ride and bring in CEOs who recognize that the best leadership is not about what leaders do to people but what they do with people.
2005 © The Filson Leadership Group, Inc. All rights reserved.
PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.com
The author of 23 books, Brent Filson's recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. ? and for more than 20 years has been helping leaders of top companies worldwide get audacious results. Sign up for his free leadership e-zine and get a free white paper: "49 Ways To Turn Action Into Results," at http://www.actionleadership.com
One of the most common complaints that business owners have... Read More
Want to bring out the best in people?Edward W. Smith,... Read More
If you think ahead and plan, many nightmare panic and... Read More
Many organisations use the term "lessons learned" to describe the... Read More
The end of the television season in May included the... Read More
Telecommuting or virtual work opens up a wider net of... Read More
Are you uncomfortable with delivering disciplinary action, even involving employees... Read More
Every business must strive to provide quality products and services... Read More
Do you know how many customers you have that are... Read More
There's one simple secret to effective meetings: set an agenda... Read More
There is no substitute for soliciting the opinions of the... Read More
Now that it is January, many of you are putting... Read More
"Can This Marriage be Saved?" So reads the title of... Read More
As a child, you probably heard, "to thine own self... Read More
The ability to solve complicated problems quickly is more important... Read More
The use of cultural awareness training has increased rapidly in... Read More
I saw Brian Kerr (the Irish national football coach) on... Read More
Q: Why is a great business like a great marching... Read More
How would you handle communication if your business or practice... Read More
As a small business operator, personal checks may be one... Read More
"But you don't understand!" exclaimed the manager, "this new initiative... Read More
Check Out Your E-HabitsAnother week has ended. And, despite moving... Read More
Employees are the often-neglected stakeholders in the success or failure... Read More
A Nightmare That Really HappenedOver 10 years ago, when I... Read More
Service Level Agreements, or "SLA's" are tricky but useful mechanisms... Read More
Having an agenda template that works well for you, week... Read More
Managers who aren't loyal to their people can't expect loyalty... Read More
When we're selling to business people, our value proposition has... Read More
This article relates to the Compensation and Benefits competency, commonly... Read More
When trying to get something accomplished, assertive behavior is the... Read More
Organizations live and die by results. Yet most organizations get... Read More
Many concepts in the fields of managing creativity are very... Read More
Eventually, your business is going to need to have some... Read More
When you are acclaimed for excellence during times of crisis... Read More
Why are people changing jobs so quickly these days?Here are... Read More
A good consultant provides specialist abilities and experience, innovative ideas,... Read More
SELECTING THE RIGHT PERSON: To whom should tasks be delegated?... Read More
Managers who aren't loyal to their people can't expect loyalty... Read More
When people or groups make a decision to purchase something,... Read More
Perhaps the most common theme I've heard in working with... Read More
A major problem impairing an executive's performance is his Emotional... Read More
Life can sometimes be unexciting if not refreshed by the... Read More
Become a better boss and reap the benefitsAnother interesting study... Read More
Human Resource Communications and Corporate Communications ? are they one... Read More
Creativity can be defined as problem identification and idea generation... Read More
Business IntelligenceBusiness Intelligence has become a very important activity in... Read More
Certain processes enhance creative output and others enhance innovative output.... Read More
How many times have you heard or uttered this phrase... Read More
Your use of voice mail tells others a lot about... Read More
The pure and simple truth is rarely pure and never... Read More
Did you know that an airplane in flight is off... Read More
I've always been fascinated by situations where art imitates real... Read More
Do you remember being told to use the "sandwich" technique... Read More
In our experience, we have found that there are several... Read More
Over 3 of my meetings with 3 business owners last... Read More
Rejection hurts. No one likes to give it or to... Read More
In September 2004, President Bush signed the $146 billion tax... Read More
1. Sell more back end products to your existing customer... Read More
Each day millions of workers spend 8 hours or more... Read More
Let me repeat a story I heard many years ago... Read More
Creativity can be defined as problem identification and idea generation... Read More
Not long ago I was asked to come out and... Read More
A series of articles exploring the seven critical areas that... Read More
Five monkeys were placed in a cage. A banana was... Read More
Creativity can be defined as problem identification and idea generation... Read More
It seems incongruous that good idea generation can be a... Read More
Business Management |