Leadership: Looking Over the Horizon

The role of the Chief Executive Officer (CEO) is to project a compelling vision and guide followers to achieve that vision. Now more than ever, CEOs are more visible, in terms of their public personas and they need to be confident in their vision for their company and be able to build consensus, secure cooperation and deal with criticism effectively.

A CEO must be bold within reason, and sometimes daring in the application of innovative policies as he or she steers the company in the right direction. This calls for exhibiting attributes such as courage, intelligence, grace, openness, vulnerability, and authenticity.

We are living in an age of significant disruption where effective leaders need to be able to rise to face new challenges, balance stakeholder needs, fix snarled supply chains, secure employee support and loyalty, and build an ecosystem in which the company can thrive. Demonstrating agility, humility, and the ability to continuously learn and adapt to survive in an increasingly complex world are the hallmarks of 21^st century leadership.

Additionally, the expectations of good corporate citizenship have shifted and business leaders are increasingly being viewed as community leaders and not just as corporate leaders. This mindset shift demands much more from top leaders. CEOs need to be grounded in their own humanity to be able to exhibit empathy, which has been heralded as a critical skill for effective leadership in these challenging times. CEOs must therefore elevate their mindsets to view the environment beyond their organizations and serve the needs of multiple stakeholders, including the communities their businesses operate in.

Trust your Employees

For a leader to be able to look over the horizon and anticipate how the world will change, they cannot become mired in details and lose the big picture. The ability to delegate and trust the people that they have hired is critical for a CEO to be effective in their role.

A CEO needs to be able to set the agenda and prioritize effectively. In order to do this, he or she needs to be able to keep the big picture in mind as well as understand the business well enough to articulate why the strategy they propose is the right one and how everything fits together.

In order to have the space and time to do this, CEOs need to empower people to make decisions and run their own departments and hold them to account. Micromanaging is a huge saboteur for a new CEO. It might be difficult to give up control and allow some things to happen independently of you but in order to be effective, you must shift from an operational to a strategic mindset. Build a team you can trust to execute effectively.

Analyse and Understand Megatrends

A megatrend can reshape business and policy environments. Boards are increasingly looking for CEOs who can understand the nuances and complexities of megatrends and how their organizations can capitalize on them. The term ‘megatrend’ was first coined in 1982 by US economist John Naisbitt and it refers to long-term trajectories of attitudinal and behavioural change that occur slowly over the course of one to two decades. Societal megatrends can modify the ways in which customers live, their purchasing patterns, and cultural attitudes.

A CEO should be able to spot new megatrends on their radar that may be developing on the fringes that can affect the future operations of the company. Examples of megatrends are globalization and the emergence of new customer segments and new tastes and preferences, environmental crises and building sustainability and good environmental practices and individualism and pluralism. These have been characterized by the recent ‘Great Re-shuffle’ which was based on employee’s work preferences and technological convergence as many disciplines are disrupted by technological advances.

Understand the Situation on the Ground

As a CEO, there are key moments when you should solicit opinions. When you show that you are interested in what others think, you will gain important information, and make others feel valued. Creating a healthy and vibrant culture begins with open communication. Are you intimidating and difficult to access or do you have an open-door policy where people feel comfortable to knock on your door and share things with you? It can be difficult to get your work done if you are too accessible but if you are completely isolated and only accessible by a chosen few, you will miss important opportunities to form connections and gain key insights. Be balanced in your approach to accessibility.

Remember, the more accurate the picture you have of the situation on the ground, the better your ability to anticipate future challenges and resolve current conflicts. New CEOs should spend 20 per cent of their time in the office and the other 80 per cent walking around the factory floor, talking to suppliers, talking to customers and employees, and understanding business processes. Getting a first-hand account of the situation on the ground and spotting issues that others may not have seen can really help you to lead effectively. This practice should also be extended over the years as you continue in your role as CEO, as situations are dynamic and will change with time. Keep your ear to the ground and build trust with people throughout the organization who can give you timely, accurate information.

Zoom In and Out

Finally, a CEO needs to be able to zoom out and understand the ecosystem in which the company operates in, the industry and related industries it competes with, and the local, regional, and global environments that affect the company. The CEO then needs to be able to shift inwards and look at company processes, products, and future pipelines critically to understand which strategies will move the company in the desired direction.

CEOs tend to spend time dealing with external parties such as government officials, industry analysts, external stakeholders, competitors, customers, and partners. Indeed, this will allow them to glean new insights and diverse perspectives that can help shape their thinking. It is, however, equally important for them to spend time with their employees, gain internal insights, and break down silos so that information can flow freely within the company.

CEOs who can absorb external and internal insights, gauge their value accurately, and jumpstart corporate innovation that can give their companies an edge are more likely to be successful in the long-term. As the Captain of your organization, looking over the horizon, foreseeing obstacles and charting the right course is your duty. Do it with grace, humility, and courage.

Article by Shailja Sharma, SBS Faculty Member and Leadership and Career Coach

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