Bob Nardelli, formerly the CEO of The Home Depot (www.HomeDepot.com), was quoted in an interview that “People who do things make mistakes. The biggest mistake is doing nothing.”
This is the first commonly made mistake made by a CEO: doing nothing when action is called for. By waiting, the CEO seems to believe that the trouble will somehow disappear of its own volition. Guess what: it won’t.
The second mistake most often made is not to have a game plan. While having tangible number goals is great, as is a lofty vision statement supported by a clear mission statement and a “main thing,” all of it is for naught if it is not supported at the foundation by a crystal clear strategy, clear roles and specific responsibilities, desired results to the lowest level, simply understood value for clients and a team that can execute.
Being afraid to conduct performance appraisals is the third mistake CEOs make. The ability to speak honestly to those that are performing, those that are underperforming and those not performing at all is a skill that must be acquired and used when needed. On top of that, courage is required; it is not easy to sit down and have a difficult conversation with a top manager that is not making the necessary contribution as a leader, but it must be done. Regular feedback is essential, even if unpopular and uncomfortable.
Not listening, not hearing, not understanding and not caring when spoken to is the fourth mistake made by CEOs. Too many at the top talk to, not with, their people. As a result, people disengage and go on auto-pilot, which increases the resentment, anger and negative morale that is poison to any organization.
How the CEO spends his or her time is a strong indicator of priorities. When the client comes last to him or her, the CEO is sending a message. That is because mistake number five is that the CEO never sees any clients, except by accident. The CEO puts everything else before the one thing that makes his or her organization possible. Here’s reality: No clients, no company, no need for a CEO!
The sixth mistake is when the CEO expresses an aversion to learning. People learn from mistakes, successes, experience, shared ideas and from any number other of potential sources. When the top executive sends a message that they do not believe in their own continuing education, it says that the organization they lead is not a learning organization. In the real world, it means that the organization and the CEO will soon be passed by.
When the CEO gives orders, and only gives orders, two things occur. The first is that the company will be void of those risk takers willing to take ownership of ideas, programs and projects; the second is that the organization will lack excellence because motivation for idea creation and implementation will cease to exist in short order. Mistake number seven will produce resentment, avoidance and the “beaten dog” syndrome instead of what is needed: pride and passion. Who remains at such an organization: the weak and those without options to find employment elsewhere.
The eighth mistake is that the CEO allows disloyalty, incompetence, and the actively disengaged (internal terrorists) to stay employed. This sends the message that the organization will tolerate such behavior, starting with the recruiting practices that allowed these individuals to be hired in the first place, and a lack of an effective performance appraisal program for weeding them out. Every day that these kind of people are allowed to stay employed only strengthens the foundation of a culture that permits mediocrity, or less.
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When an organization has departments that are fighting with one another, often manifested by a lack of communication; when an organization has silos that put a department, division or regional office before the company; when there are competing and conflicting responsibilities, roles and desired results, the concept of a team exists in name only. The ninth mistake of the CEO is allowing the organization to run in a state of misalignment for more time than it takes to correct it.
The tenth mistake of the CEO is a lack of trust in the management team. This manifests itself by assigning multiple people to the same task; by micro-managing tasks and by constant and needless follow-up of trivial matters. Managers with this type of CEO often wonder why they have the title of manager when they have no real authority or responsibility. The good ones leave and go to a place where they will be allowed to put their talents, skills and abilities to use.
One of the best books for a CEO is “What Really Works” by William Joyce, Nitin Nohria and Bruce Roberson. It is a must read.
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