You're always a new CEO - Career Advice - Brief Article

Chief Executive, The, Feb, 2002 by Michael A. Verespej

James M. Kilts is in his third tour of duty as a CEO. But the chairman and chief executive of Boston-based The Gillette Co. understands that to his management and to his employees, he's a newcomer.

"A new chief executive needs to walk around the organization meeting with top managers, visiting facilities and benchmarking the company [to gain] a full understanding of its strengths and weaknesses," Kilts says. "Then you're in a position to determine how to close gaps between the two and to form clear, straightforward and easily communicated strategies and action plans."

That is precisely where new bosses should start in this era of accelerated executive turnover, says Gil Stenholm, managing director and partner in the Chicago office of the international consulting firm Spencer Stuart. Nearly 20 percent of the nation's 200 largest companies had to find new leaders last year.

"Even when an experienced chief executive goes to another company, he or she is in a new environment and needs to follow the same principles a first-time CEO would," says Stenholm.

Dave Whalen, CEO and president of pen manufacturer A.T. Cross Co. in Lincoln, R.I., advises, "A new CEO needs to develop his vision with the help of the people who are going to execute it. Many people within the company have worked a long time to build the value that was there when the CEO arrived. If [their] ideas are eliminated because the new CEO did not think of them, then the CEO will alienate a lot of valuable people and risk the proper execution of his vision."

"Be a good listener," adds Robert Caulk, chairman, president and CEO of United Industries, a fertilizer and pesticides manufacturer in St. Louis. "You'll learn the dynamics of the business, [including] where you can make an impact, what customers need, and what has and hasn't worked in the past.

"Don't assume people immediately understand what you're doing," suggests Carlos M. Gutierrez, chairman and CEO of Kellogg Co. in Battle Creek, Mich. "You need to over-communicate, to be willing to walk the talk and to make sure the actions are consistent with the messages."

Kilts agrees. "Assess carefully. Communicate clearly. Deliver consistently. Through those three actions, a new CEO will establish credibility, internally and externally."