Many of our clients put us to work inside their portfolio companies. One of the most common questions we are asked is about CEO readiness. Whether the question persists around the CEO in position, or perhaps the CEO in waiting, there is often a well-understood curiosity about the capability of the person in the top job to execute investor expectations.
While there is not one easy answer to that question, there are common themes that we see in successful portfolio company CEOs:
1. THE CEO HAS A PLAN TO CREATE VALUE
That plan should align with investor expectations and provide a roadmap for how the organization will deliver. Regardless of what you call it (100 Day Plan or otherwise), the CEO’s plan should describe where the organization is headed, what it will deliver for shareholders, how they will execute and how success will be measured.
2. THE CEO IS HIGHLY SELF-AWARE
While there is not one ‘perfect’ profile for this job, strong leaders know their strengths and how to leverage them, and they have strategies for mitigating potential derailers. They also know what they stand for (their values), how they show up to others (their reputation), when to dial up their strengths, and when to engage their staff to counteract or compliment their limitations.
3. THE CEO KNOWS THE TALENT DEEPLY AND ALIGNS THEM ACCORDINGLY
Depending on experience, the CEO may have deep knowledge of the entire operation, but more than likely, he/she has come from the outside or from a segment within the portco. Determining the critical roles that will propel success and engaging the right talent against the most important goals are an essential part of the equation.
4. THE CEO FOSTERS A HIGH PERFORMING TEAM
Getting a group of highly skilled leaders all performing as a unit—a true team—can be challenging, but is the key to unlocking an organization’s full potential. In addition to knowing what each person brings to the leadership team, a strong CEO also develops a keen awareness of the team’s strengths, gaps and potential derailers. This is the foundation for unleashing the potential of the group, removing obstacles, and enabling the team to produce remarkable results.Looking to assess or develop the capabilities of a current or potential CEO? We can help.