When a new CEO takes over, they feel immediate pressure to perform well and distinguish themselves. Whether it’s to prove themselves in a new organisation, or show that they are able to succeed a mentor or company stalwart, it’s understandable.bcg.perspectives put together a great piece on some of the big misconceptions about a CEO’s first 100 days. It’s important reading. BCG estimates that corporate complexity has increased by a factor of 35, and requirements and regulations have increased by a factor of 6, so it’s harder than ever to get it right.
New CEOs usually get a grace period for the first 100 days, but its essential that they get it right.
Here are the five myths, and the new realities CEOs have to be aware of.
Myth 1: New CEOs need to quickly decide what to keep or discard from old systems and routines.
Reality: This can lead to an excessively reactive style, and the perception that the new CEO is just doing things to put distance between himself and his predecessor. Successful leaders look inward, and decide what point of view, impact, and leadership style they want to bring to the company. Substance and style fit together, which makes the CEO more effective and employees more engaged.
Myth 2: CEOs have to act boldly, right away.
Reality: Acting too rapidly and without consideration can create alienation and backlash. With any action a CEO takes, there are going to be second and third order consequences, and effects throughout the organisation they can’t possibly understand at the very beginning of their time. Acting more slowly allows a new CEO to bring leaders and external stakeholders on board, making any change faster and more effective, even if it’s slower at the start.
Myth 3: CEOs should form a “superteam” of the very best leaders and executives
Reality: When you create a team of extremely successful, extremely talented people, too often it doesn’t end up being a team, but a group of people with nothing in common but a high opinion of their relative abilities. You can end up with competition instead of cooperation. Suitability for their particular role, and as a team member can outweigh “individual calibre.”
Myth 4: New CEOs should set new and tougher standards
This often happens in reaction to perceived complacency or poor performance under the former CEO. The idea is that tough new metrics and standards will get people to redouble their efforts. Instead, it can focus people on the short term and take them away from what really drives value. Too often, it’s about measuring activity instead of real outcomes. More successful CEOs think about the expectations they and the company have for them, and work towards what the market and stakeholders want instead of arbitrary productivity goals.
Myth 5: A new CEO must be the smartest person in the room.
There’s a compulsion when taking on a position of authority to have a definitive answer on everything and to acquire expertise on every part of a job. That’s all but impossible in an organisation of any size. That attitude can lead a new leader to discount or fear the people with the greatest expertise in areas they feel insecure about. Being a CEO is more about looking at the big picture, and being able to tap into other’s expertise.
Find the full article at bcg.perspectives
NOW READ: Debunking Three Common Myths On CEO Pay
NOW WATCH: Ideas videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.