In part A of this blog, we looked at the first three principles that have worked well for me as I have run my organizations, principles that cannot be outsourced. If you haven’t had a chance to read Part A of this blog, I would recommend you start here.
Here’s a quick recap of what I mentioned:
- Determine what’s important to you
- Set aside time to think
- Honesty as a standard
Today, I have four more foundational principles to have as a CEO. Let’s get started.
4. GUARD YOUR REPUTATION
You most likely have already borrowed money for your business, taken in investors, or aligned with someone who can partner with you. To get the money and the partnership on board, you worked very hard to convince them.
What I’ve often seen happen, however, is that once funding is received, CEOs tend to relax and move on to something else without maintaining the same level of value and focus the lender or investor requires. They assume the hard work is over. However, this is not the case.
As the CEO, if you commit to certain requirements such as providing financials on a regular basis, reports, a copy of your tax returns, and so on, ensure that you make a note and stay on top of them. Deliver them ahead of schedule, or at least as agreed, and never wait for the lender to remind you or hold you accountable to what was agreed.
This is the way I view it. You worked hard to establish the borrowing relationship. The onus is now on you to grow the relationship and ensure it’s as good as it possibly can be. I’ve always had the mindset of outperforming my lender. If you cannot deliver something when it’s due, be sure to inform the lender or investor ahead of time, clearly state when you will be able to deliver, and then work hard to stay on top of your commitment to do it, preferably before the new date.
You are building a stellar reputation so they feel confident to approve whatever your next request may be. As the CEO, it’s your responsibility to meet the standards and deliver on whatever it is you agreed to. Even if they don’t read or respond to you, the fact that you remain on top of it, meeting the agreed requirements before time will get you a greater return and could allow you to maintain the relationship long-term.
If you can keep (or shift) their perspective of you as an individual who remains on top of things, it will work to your advantage. A good productivity tip is to set a reminder in your calendar for the due date. Consistently doing this will help you stand out in the most positive way.
5. DETAILS VERSUS BIG PICTURE
Once you’ve identified and defined your goals as the CEO, I believe you should now pay attention to the details. I view myself more as a detail-oriented guy than a big-picture guy. I hold the philosophy that when you pay attention to the details, the big picture will be attained. But if you only focus on the big picture and miss vital details, it may cost you a great deal. Therefore, I consider it critical to spend time thinking through and focusing on the details.
Take time to identify what’s important to the company and develop a system that allows you to see these key areas on a regular basis – either weekly, monthly, quarterly, or annually. Closely track the items that would make a difference so as to catch them early and respond ahead of time.
For example, there may be a potential issue that you would want to anticipate and get ahead of as soon as you can. Alternatively, there could be a positive opportunity that you want to maximize on.
Keeping an eye on the details can lead to greater returns. As your organization starts to operate at its optimum, new opportunities for growth will arise – often with higher profit margins. That’s why staying focused on the details is not just about the present, but is what sets you up for potential growth ahead.
6. OUTPERFORM YOUR COMPETITION
As the CEO, you need to remain conscious of what distinguishes you from your competition. Identify the areas that make you unique, stand out and communicate that both externally and internally. Try to make the most of what makes you different.
7. MAKING DIFFICULT DECISIONS
As the CEO, you’re often faced with difficult decisions and making them in a timely manner is important. Eventually you arrive at the right decision, but it may take you a lot longer and the impact on the business usually is negative. I learned this the hard way when it came to letting people go. Early in my career I had a team member who struggled to grasp his responsibilities. I gave him multiple chances – so many in fact that it took me over a year to make the decision. When I finally did, it hit me, had I acted sooner I could have brought in someone new who would have been producing results; and the current member could have moved on to a role better suited to his strengths. In hindsight, giving him so many chances wasn’t fair to him or to me. Fortunately, I’ve learned from that experience.
When it comes to making difficult decisions, I have found the exercise of modeling to be extremely valuable. Modeling works for many different scenarios, including sales, finances, or a new product or strategy you’re launching. I encourage you to use this strategy for big decisions and important things that are happening in your world. I still have some of my models from many years ago and use them often for current situations. Modeling allows you to make objective, clear, critical decisions.
Another tool that has served me very well are T-charts. As I am processing a decision, I reduce it to a simple pro and con list. I’ll put the positives on one side and the negatives on the other. Over time, I’ll add to the list as I evaluate the decision.
Sometimes the direction will jump out at me but putting it in writing allows me to also gain insight from key stakeholders. On occasion, I will add a weighing factor (1 – 10 score to each point), so it determines how important each item on the list is to the overall decision. Once I’ve scored each point, I will total all scores to obtain a total for the positive column and a separate total for the negative column. Comparing the total scores is often very helpful in making my decision.
Writing everything down and working through it over time has helped me make difficult decisions with a lot of confidence. I often keep the T-charts because down the road from time to time I may question my decision and wonder how I arrived at it. It’s a simple, practical tool that has proven to be effective. That summarizes the seven building blocks I have consistently used throughout my career that have brought me high returns.
ACTION STEPS
The varying demands of a CEO can be overwhelming, and one needs to make the right decision on how to prioritize their time, energy, and resources. Having a solid, value-driven foundation can help move you, and consequently your organization in the right direction. Take time away to identify and clearly define your own key principles that will form your foundation. Develop a system that allows you to regularly track the effectiveness of each one. Once fully formed, you will make an even greater impact on your organization and community at large.
I hope these eight foundational practices were helpful to you as a CEO. What are your thoughts on what I’ve shared today? Please let me know by putting it in the comments section. Your feedback could help another reader too.
