Stephen H Baum Leadership

One of my CEO clients was asked by his P/E firm to present his view of what has made him a successful CEO in two different companies. The top line will come as no surprise to the experienced CEO:

1. Aligned Strategy & Scorecard Up Front
2. Strategy Deployment Plan – A Tool to Roll Out Everything and Set The Operating Cadence
3. Talent – Early upgrading and an annual review with the Board
4. Stretch Budgets
5. Recruiting Outside Board Directors
6. Retain an Executive Coach

In my view, this list also applies to companies that are founder-owned, employee-owned and public (with a few additions for publics).

I asked him how his own views had changed as a result of his gigs as CEO. This is his view:

• He may have been initially doubtful that he could not fare just as well without the extraordinary amount of help involved in these KSFs. but he now believes:
  • There is no substitute for an early, independent assessment of strategy by an experienced firm who can bring market and customer insights to the table
  • Frequent review of the scorecard based on the strategy keeps both Board and management time and focus where it is needed as well as maintaining alignment with the Board
  • The use and frequent review of a strategy deployment tool[1] makes clear the goals, each executive’s part in achieving them and drives the rest of management to focus the most precious resource — time and attention — on their contribution to the results
  • Recruiting a project management expert to drive strategy deployment is essential, possibly with experience in ‘Lean manufacturing and services”
  • Early upgrading of the senior team and next level are crucial as is an annual review of talent.
  • Stretch budgets increase transparency and contribute a lot to exceeding budgets
  • Outside board members (even if an advisory board) bring perspectives, talents and connections that no one inside has
  • An executive coach is the safe accountability partner who will challenge the CEO on all dimensions of his leadership and may be able to learn from all parties (including the board) what he cannot via periodic assessments (“360”)

 I did not have any influence on his adding the last KSF which is clearly in my own interest. I will add that one of the other portfolio company CEOs commented on the nature of a coach he considers worthy: enough years of working with CEOs to recognize patterns in CEO behavior, business issues and the like and to be unflinching in challenging the CEOs assumptions, approaches and behaviors.

 If you find this helpful, please tell your friends. If not, please tell me. If you wish to know more about any of the tools, just ask.

[1] A display of overall goals, initiatives and tasks which align to achieve the goals along with names of individuals responsible for each of these