CEO Strategy--Knowing What NOT To Do

Peter Drucker once challenged CEOs to not only think about what they should be doing, but also think about what they should not be doing. 

As the leader of your organization, are you very clear about what you need to accomplish?  Remember, the more you focus on your own role as CEO, the more your senior managers can focus on their roles. 

Yes, you must be a visionary.  Yes, you must be good at strategic thinking.  Yes, you must be able to develop and build client relationships.  But above all else, you must be able to FOCUS. 

According to Lawrence King, there are six functions you as CEO must focus on: 

Strategist

Where is your company heading?  What does the future hold?   Where will your future profit margins come from?  You are responsible for answering these and other long-term-impact questions.  And to answer those questions well, you will need to continually focus your attention on what’s going on both inside and outside your organization—and view what you see from a strategic point of view. This is a highly leveraged activity that takes time to perform with excellence.  

Ambassador

Establishing and maintaining your credibility with your important customers and clients is something only you can do.  You must get to know the customer and let the customer get to know you.  Only then will they be able to increase their trust in you.  Depending on the size of your company, this may take more time than you think. 

Inventor

You must ensure that the strategic direction of your company aligns around your customers’ pain.  As you meet with your customers, find out what problems they are having or anticipate having over the next year or so.  Then focus on developing new products and services to relieve that pain.  You must drive innovation within your company.  Know for a fact that at a minimum, the CEO at one of your competitors is doing just that.

Coach

Ole Carlson states that the CEO must inspire, influence and transform the “human currency” in his/her business.  Without excellent people walking the halls, your plans and strategies will not be implemented properly and your goals won’t be achieved.  Paint a picture of success beyond what people think is possible for themselves.  Influence your people by role modeling, mentoring and spending one-on-one time with them.  Instill a culture of learning throughout all levels of your organization.  Another highly leveraged activity that takes time—and that you cannot delegate to someone else. 

Investor

Treat your company as an investment.  Know the market value of your business and strive to grow it.  Lawrence King challenges CEOs to direct all decisions for the business toward improving its market value.  Christians may chafe at this directive, especially if higher priority goals prevail (e.g. relationships with customers, employees, vendors, etc.). 

Student

Continue to learn.  Stay active in some form of professional involvement (here is one area where Daystar Consulting could be of help to you).   

Finding the Time

So how does one find the time to focus on the above priorities?  First, you must have a capable management team in place to make sure that all the daily operational details are being handled with excellence.  Beyond that, the CEO must learn to delegate.  When he/she fails to delegate, Ole Carlson states that the cause usually involves one or more of the following:

• The CEO may be best suited to do the task him/herself.
• The CEO enjoys doing the task or feels it is more expedient to do it personally.
• It is an avoidance strategy to keep from doing other tasks that must be done.
• The CEO is a control freak and must be involved in everything.
• The task has become habitual.
• The CEO wants to delegate the task, but does not have a talented person on staff to delegate the task to.

As we’ve mentioned in past Weekly Insights, the only way I know to get a handle on CEO time is to conduct a Time Log for a couple of weeks.  You will then see what percentage of your time is actually being spent on “CEO stuff.”  Perhaps you’ll need to develop an accountability partner who will challenge you each time he/she sees you doing non-strategic activities.   

There are only 24 hours in a day.  Your business is but one part of the life God has called you to.  As CEO, focus on those things that only you can do.   

Keith

Subscribe to these Weekly Insights at no cost at www.daystarconsulting.com

Weekly Insight answers to executive questions at http://www.daystarconsulting.com/faq.asp