The 4+2 study demonstrated that the CEO influenced up to 15% of a company’s profitability, meaning that the chief executive is not just a general leading troops to competitive victory, but that a significant portion of the performance of the business is pegged to the leadership abilities of the company’s top executive.
Interestingly however, the processes a leader uses and the kinds of assessments made in the lead-up to a decision matter little for Winning companies. Likewise the individual personality and other characteristics that make-up a leader also have little impact on winning.
Indeed the 4+2 study showed there are a few CEO skills that do matter, including the ability to build relationships across the entire company; CEOs that appear more a part of the company fabric versus those that sit in the proverbial ivory tower tend to fare far better.
Leadership in the form of being able to identify both future opportunities and challenges is also critical. But the process of arriving at recognizing prospects and problems ahead of time matters little unless the leader is capable at capitalizing on the opportunities, and heading-off issues before they impact the organization. With this in mind, Winners incentivize the leadership team by directly linking financial rewards to performance.
The concept of leadership in larger companies also extends into the boardroom where, among a variety of other important responsibilities, members are often tasked with selecting the CEO. Board members of Winning companies affect great leadership by completely understanding the business and by being entirely committed to the business’ success by having a substantial stake in the financial success of the organization.
How Avidium can help
Being the Chief Executive Officer is an inherently important role, with 15% of a company’s performance tied directly to the decisions a company’s top executive makes. And, in many cases, executive pay is directly linked to goal achievement and other performance measures. Avidium works with clients through executive coaching, senior management coaching, and team development, ensuring that executives at many levels have the leadership skills necessary to perform consistently. We work with executives on communicating their vision so convincingly that peers and subordinates will readily trust their leaders and adopt their approaches. We also work with clients on ways to anticipate the future movements of their industry so that they can adapt to these before the rest of the market does.