The Evolving CEO Role - Feedback - Brief Article

Chief Executive, The, Nov, 2001

Your CEO roundtable discussion, "The Revolving Door of Talent" (CE: August/September 2001), brought to the fore key features of an effective chief executive today.

Yet many companies fail to realize that businesses evolve and have different needs at different stages of development. A stellar CEO for a start-up is not necessarily right for a company quisition mode. As a business evolves, different leaders fit different imperatives. I've identified five key types:

The start-up CEO is a strategic thinker capable of articulating a vision and generating excitement about the task at hand. This is a hands-on, entrepreneurial visionary comfortable wearing many hats.

The established CEO suits a company with less than $50 million in revenues. This is an architect with an operational focus, a leader who can recruit the long-distance players and build infrastructure. This quick decision maker can link the vision to processes and systems.

The growth CEO must be an investor in people and ideas. He or she is able to predict changes in products or services, distribution channels, and client constituencies. This leader must be comfortable speaking in front of a crowd, is a strong developer of people, and can anticipate potential competition from new geographic areas or new technologies and launch the breakaway strategy.

The acquistion-minded CEO must be a critical thinker and seasoned negotiator. This dealmaker can close the deal, execute a smooth integration, and realize the benefits of the acquisition. He or she must be astute enough to see the value and cultural fit of an acquisition with the courage to walk away when it doesn't make sense.

The turnaround CEO is a strong problem-solver who can diagnose weaknesses, be decisive, and stem lost resources and talent, while implementing new strategies with a sense of urgency.

Too frequently today, companies use incomplete or inaccurate criteria to make top-level management decisions. Boards of directors and human resource executives should evaluate leadership based on both internal and external industry factors. They should identify the leadership skills, style, and management capabilities required to take the company to the next level.

But they should do this only after determining where the company is in its evolutionary process.

Nikki Bondi

Managing Partner

Advantage Partners Inc.

Cleveland, OH