Foundational Insights for the Reflective CEO- Part I
Insights are the bursts of clarity that cause you to pull over the highway and take notes. They are the blinding light that shows you the path forward. These are not just nuggets of information- but, the nectar of experience and the wealth that resulted from trial and error. If these insights appear as casual statements of truth, your experience has probably not fructified to the point where this makes sense.
They are meant for the reflective CEO- a business leader who believes in not just plunging headlong into action, but is willing to put the hard work of stepping back and reflecting on the larger patterns. If this seems like a lot of hard work, you should stop reading here.
Many of these insights have come out of my direct leadership experience. Others have sprung from powerful conversations with proven leaders. For some of the insights, you will fight it at first. One day, you will be in a meeting, where you might say the exact same words as a particular insight.
Welcome, dear reflective CEO.
Insight #1- If you solve the wrong problem really well, you do not get a reward.
As CEO, you have limited time and even scarcer attention. This requires that you demonstrate focus. You do this by ensuring that you understand what problem requires a solution. Frequently, the eddies of urgency, coalition politics and the shrill remonstrations of the predictably loud are all too influential.
It is your job to say things like- “Stop! What are we doing?” “What is the fundamental problem we are solving? Why?” “Unless you can define the problem, I am not interested in solutions.”
Frequently, you will find that this leads to alignment. Team members who were wasting their effort and resources on things that did not matter will rise to the occasion. This alone can lead to a more effective organization that is constantly adapting and refocusing in response to a changing landscape.
Insight #2- What you see will lead to your focus. What you focus upon will lead to your thoughts. Your thoughts will lead to actions. See the right things.
As CEO, you must realize that you cannot manage the unseen. Yet, there is so much around you, that you simply do not see. When you narrow your focus on a short set of items, you may not be paying attention to some other things.
A tangible example. As you get focused on executing the roadmap that you have committed to publicly, you may not realize that there is a new technology or competitor that can utterly disrupt your business. When you start losing customers, you go back and try to understand what happened. By then, there is irreparable and irreversible damage done to your business.
This is why a CEO that listens to others’ points of view is so valuable. By understanding that others see things that you do not see, you are in a position to gain a broader perspective. Many CEOs re-adjust what they see after a conversation with a a coach who may promote this sort of inquiry.
As soon as you see something, your thoughts will shape the path forward leading to the right actions.
Insight #3- Your mental health will impact your entire organization.
As CEO, you set the tone for the organization. If employees see that you are depressed, they will viscerally react. The result will be palpable. This does not mean that you suffer alone. Rather, it means that you take care of your mental health, just as you would take care of your physical health. This would encourage others to do the same and create a culture where it is okay to talk about mental health.
The reality is that stress, anxiety and depression are common among the preponderance of senior business leaders. Too often, CEOs feel like they can show no weakness and try to hide their failing mental health. While this may seem like a comfortable and safe retreat, it never works in the long-run. Sadly, the final result can be catastrophic- don’t let it get to that.
Dear Reflective CEO, heal thyself.
Insight #4- Plan for Massive Unanticipated Change(MUC)- Behold the Dragon King
Nobody realized that COVID will shut down the global economy for two years. It was a massive unanticipated change. Yet, it is amazing that many organizations are not ready for a similar event in the future.
Of course, you cannot predict MUC. Many CEOs still think of MUCs as Black Swans, i.e., a rare and improbable event.
However, it is much more important that you start thinking about Dragon Kings. These refer to phenomena that are both massive in scope as well as arising out of unique causes. Frequently, dragon kings lead to system-wide catastrophic failures. The changes due to dragon kings are massive and lasting.
Incorporating planning for such phenomena into the systems and processes of your enterprise is important. If you are only planning for incremental changes, you will be caught entirely unawares by a massive change.
Your team will find this hard to grasp. But, even if you don’t have a clear structure or all the answers you make time to imagine and plan for a MUC in the future.
Insight #5- Learning is the Only Lasting Competitive Advantage
The rate of growth of knowledge is accelerating. As a result, there is a clear expectation that as a CEO, you will be learning constantly. If you don’t learn, you will stagnate and so will your company. On the other hand, if you are constantly learning, you will be able to identify opportunities for growth, spot lacunae and vulnerabilities and bring in new organizational practices.
As with anything that matters, I recommend that you put together an intentional learning plan. When you put together a learning plan, you should share it with your executive team so they understand how you are approaching this. You can take a social learning perspective where you benefit from others’ knowledge- for instance, you can ask your team to meet with you to discuss an article or book.
Think about how learning is integrated to your leadership practice- and, not a casual after-thought.
How to Use These Insights
These insights can come to life only if you connect them to powerful actions. Share it widely with your employees and organizational leaders. Take notes on actions that you will take over the next 100 days.
I wish you the best in your leadership journey.