Shocks for First Time CEOs andHow to Support Their Transitions

Padraig O’Sullivan

Executive Transitions

The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.

The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

one

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.

The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

two

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.

The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

three

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.

The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

four

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.

The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

five

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.

The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.

six

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The hardest organisational leadership is becoming to being a CEO for the first time. Accompanying the achievement of one’s career ambition is a series of “shocks”. To be successful and meet modern society’s high expectations, first time CEOs have to be aware of the “shocking” realities they will encounter and have support systems in place to help them successfully navigate.

For many, becoming a CEO is the achievement of their career aspiration. The impact and responsi-bility of being a CEO is enormous. The CEO impacts all shareholders, employees, stakeholders and consumers of the organisation’s products and services. For major organizations, whole industries can be impacted.

While the role has these significant impacts, first time CEOs comment on their “shock” at what they experience as the lack of control, lack of perfect information, dual roles in managing and represent-ing the organisation and the challenge of serving the o�en competing needs of multiple critical stakeholders.

INCREASED COMPLEXITY FOR NEW CEOs

The level of complexity of the operating environment for modern CEO’s has risen dramatically even when just considering technological changes, span of accountability, decreasing rates of employee engagement and short CEO tenure.

With the advent of internet 2.0 society has embraced an ever increasing number of online com-mercial tools, openness to collaboration through borderless crowd sourcing and organisational scrutiny on a range social media platforms that were unimaginable even a decade ago. This means that there are far more decisions to be made, each one is very transparent and immediately open to scrutiny.

When the Fortune 500 was launched in 1955, according to a 2013 BCG report, CEOs had between 4-7 KPIs to achieve each year. Today the same CEO will have between 25-40 KPIs.

Employee engagement scores in the 1990s, according to sources such as Gallup, were in the 60th percentile. Today they measure in the 40th percentile and, in many countries, are dropping. This creates the challenge of harnessing the energy of an increasingly disengaged workforce.

The relatively short span of CEO tenure heightens the tension between ideal performance and current reality for many candidates.

THE SUPPORT ROLE THAT CAN BE PLAYED

For all concerned supporting the transition of first time CEOs is important. This role is played by many including the Chairperson of the Board, the internal Human Resources Director, independent trusted advisors such as a Mentor or experienced Executive coach, a supportive spouse, family and friends. Each have their part to play in di�erent manners and at di�erent times.

Being open to support of course goes without saying. By now we would hope the search firms that are hired to recruit a CEO candidate are be�er at assessing openness and vulnerability than they were in recent decades.

In working with first time CEOs what I have observed is the ego needed to aspire for and take the CEO position is o�en necessary to insulate them from the constant demands and criticisms. The same ego may get in the way of remaining humble and open to learning while making mistakes in the transition. The first time CEO needs to self regulate so as to use the ego as a helpful resource rather than allow it to become a derailer. Utilising an e�ective support structure is key to achieving this outcome.

They following details the “shocks” first time CEOs encounter and recommendations for how they can best be supported at this time.

SHOCK 1: I have total control but feel out of control.

In August 1979 a young band in Dublin released their first single. Bono from U2, sang “I was feeling it was out of control. I had the opinion it was out of control…”. The irony for first time CEOs, when they speak openly a�er a few months in the role, is how out of control they actually feel despite having a role that is in control of the organisation.

Most unseasoned onlookers will struggle to understand this irony. A�er all is not the title CEO short for Chief, as in the President, tribal leader or the Big Kahuna in charge of something terribly important? The general public would only notice the salary package and exclaim that is an obscene amount of money for someone out of control. The candidate who did not get the CEO position would shake their head, mu�ering about the poor decision in choosing the wrong person for the job. Politicians on a campaign trail would threaten to legislate against this phenomenon. Maybe that’s why CEO’s rarely admit to feelings of insecurity.

Unless the CEO is the founder / co fonder of a start up organisation, first time CEO’s have most likely been promoted to this role from a COO, CFO or Commercial head position that reports to a CEO. Running a commercial business is di�erent from a whole organisation and nothing really prepares the first time CEO for this level of responsibility.

Without any planning or e�ort, the diary of the first time CEO becomes filled up months in advance with external and internal meetings. External analysts demand access on a regular basis. Board meetings, shareholders, industry groups, political organizations and other interested parties all seek time. Every charity or education institution that the CEO had a past relationship with, now wants you on their Board.

Leaders promoted from within who once prided themselves on their ability to meet lots of custom-ers, sta�, stakeholders now find themselves stuck in meetings. The time once spent understanding customer needs is now spent practicing for external briefings. Professor Michael Porter from Harvard University calls this managing the dual roles of Mr. Inside and Mr. Outside. As CEO there are di�erent roles to play than at any other level in the organisation. Managing the organisation messages to the outside world whilst managing the actual work of the inside world of the organisa-tion. Of course the dual reality o�en is disjointed. Having time to fully a�end to both is almost impossible and so the new CEO learns over time to let go responsibility of former key responsibili-ties and actions.

Support 1 Help them to understand what the new role needs of the CEO

The first time CEO needs to learn that this is a normal process and the new role as CEO demands of them to let go of responsibility of doing some actions they formally enjoyed. They need to learn the di�erence between direct and indirect influence. As CEO they have responsibility for co creating and articulating desired outputs, pu�ing in clear structures to ensure execution. Processes and organizational culture the CEO leads will assist in their execution. The core learning for the first time CEO is that they may never be hands on in their execution. But that is not the job for CEO.

SHOCK 2: I need to understand the internal and external reality?

Many first time CEOs enthusiastically study the external environment before deliberating strategy. Accordingly this tends to create a reactive tendency in the organisation. Direction is o�en bench marked against the external world of competitors rather than internal capabilities or desires. A CEO with whom I am familiar, arrived into the organisation with much heralded gusto and energy. Within four week of arrival assisted by an external strategy-consulting firm, he alone had deliberated the future strategy for the organisation. With, what looked like large sweeping motions, he dismissed everything the organisation had previously done and set about creating ‘an amazing future’. Not surprising to anyone except the CEO in question, the level of buy in to the new strategy diminished rapidly post announcement. Within six months he was removed.

Interestingly his successor was promoted internally. Having the fortune to understand the internal dynamics and culture he slowed down the pace of fast change that had been set by his predecessor and took his time to understand the strategy that had been deliberated. As it happened the strategic plan appeared to be a strong one and was adopted almost in full by the first time CEO. However, he took time to bring the organisation with him by assessing capabilities in key areas and working with the strengths of individuals and organisational capability. Some key aspects of the strategic plan were implemented rapidly and others phased as capability increased. Successful execution of the strategy took almost two years but led to an organisational resurgence in its markets.

Support 2 Help the CEO to look and listen before embarking on major changes

There are two main outputs for the first time CEO if they spend time in fully understanding the organisation, its environment and its capability.

The first is honouring and understanding the past. One of the most commonly cited grievances organisations have regarding first time CEO is that, upon their arrival the new leader casts negative aspersions on everything that has happened before. It is almost as if they have an a�itude of ‘you should be grateful I am here to save you from all of your mistakes’! The leader needs to remember the same leadership team is responsible for whatever has happened in the past. While there might have been mistakes, there are also undoubtedly successes and reasons for likely success.

The second key output is integrating knowledge from all inputs, sta�, job reports, customers, stakeholders and other collaboration points to develop an integrated perspective of the current reality. Building up perspectives that describe the organisation in terms of where it is today, the environment it is operating in, the issues it is facing, feedback from customers and sta� all go towards helping the CEO create a clear picture of the future strategy and the role your new leadership will play in creating that same strategy.

“….honour the past and understand the present….”

SHOCK 3: I cast a longer shadow than I ever realised.

As the ultimate leader in an organisation the shadow cast is wide and long. Leaders are o�en blissfully unaware of how much they are listened to, how every action they take is analysed beyond any sense of deserving or rationality. First time CEOs make a regular mistake and are shocked once the repercussions become obvious of thinking aloud on public. Every u�erance is a message of some kind. A recent client was surprised when at a company town hall meeting six months earlier his comments that he loved the style of TV ads a particular US based technology company used became a message for minimalisation in all company messaging. The use of white space became the norm very quickly despite this having nothing to do with the organisation, its brand heritage or indeed any strategy the organisation had.

On the flip side first time CEOs o�en make mistakes when saying ‘No” internally. Strategic plans and campaigns that have taken months to work up can receive a sudden death at the hands of the CEO that lead to a cli� like drop in morale that was never intended. Learning to be selective and purposeful in the use of internal power related messages is a skill to develop. The irony for the first time CEO is that they finally have the power to make the most important decisions but by slowing the process in order to make those decisions might be doing the organisation a dis-service. Ego as being the chief decision maker can manifest as a bo�le neck in the organisation. Worse becoming used as a third party reference point ( “…this is what Dan would want…and therefore….) risks becoming a bureaucratic brake on the organisation.

Fist time CEOs o�en get a shock when the understanding of their espoused messages are played back to them i.e. checking for understanding down the lines in the organisation. More o�en than not the intended message has not landed. Having a simple, clear and consistent message is the most under rated and important characteristic of successful CEOs. One former client, an experienced CEO of listed organisations, when asked about how interesting his job was replied; “My role is to say the same thing six times per say to di�erent audiences”. Simple, clear and consistent.

Support 3 Help the CEO to understand what decision-making structures need to be implemented

Relatively early in tenure the first time CEO needs to ensure there are processes and structures in place to ensure clear decision-making. This will relate to the overall strategy as defined by the CEO and leadership team. Following the clear articulation of strategy, the organisation needs to develop or refine e�cient processes to manage projects and campaigns that will underpin the strategy. With the understanding the levels of decision makers and how to align with them on the journey path towards final decisions is an imperative. The CEO should only sign o� at the end and ideally with enthusiasm as they / the right levels of decision makers have been involved along the way. E�cient and e�ective organizations emerge from clarity of roles, responsibilities and empowered decision-making.

The first time CEO may need sound boarding to decide on what powerful messages they want to make. Every message cannot be urgent, important and powerful as they will all lost credibility.

As example, a CEO of a consumable business in Africa had the organisational culture as his number one strategic priority in the organizational turn around. As part of that program the organisation ran a series of education and training programs for all sta�. The leadership team members had commi�ed to leading each one and were scheduled to be available. This was their joint commit-ment as the leadership team. On one particular session a C level executive found that he was also tasked to be at an overseas meeting and chose to go there rather than a�end the local culture meeting as the leadership team’s representative. Once the CEO was made aware of this, he rang the executive who had just landed in Europe and ordered him to return to Africa. In the CEO’s view, the joint commitment was more important than any global meeting the executive had to a�end. This was seen as a powerful message and not taken lightly.

SHOCK 4: No one tells me anything.

Once the CEO takes over the reins they quickly realise they cannot do everything. Hopefully they also realise they cannot know everything about the organisation despite their best a�empts to learn as much as possible. What shocks first time CEOs, especially those promoted from within, is how filtered the information they receive becomes.

The level of authority and power that goes with the role o�en creates barriers for others to feel safe and able to communicate with total honestly to the CEO. Former peers who are now direct reports become more guarded. Informal channels of communication become less open to sharing. This is even more pronounced in the delivery of bad news. Too many messengers have been shot in the history of business. By no means is this a case of Machiavellian or under handed behaviour but rather a normal human sense of preservation.

CEOs learn to develop trusted advisor relationships outside of the organisation whose role it becomes to hold an accurate mirror up to the CEO and to keep them informed of narratives, mu�erings and concerns that might be within the organisation. Long-term customers, fellow CEOs, industry colleagues and Executive Coaches all play this role.

One CEO client of mine savored our quarterly breakfast meetings as I was able to give her insights to the organisation at large due to a large consulting project my team were delivering in the company. Whilst my brief was not related to CEO conversations, the real value we o�ered to the organisation was to be an independent barometer of the organisational health. As she later said in a testimonial video, the assistance we o�ered was both instrumental in helping them develop their organisational culture but priceless in helping her in her CEO development.

Support 4 Help the CEO to understand how they can access information through many channels

The communication style of the CEO will dictate how much information they are fed in the many formal channels within the organisation. Strategic reviews, Brand plans, Business updates, Long range planning, Talent mapping, paunch planning and many other meeting processes exist for the CEO to impart and receive information. Developing an ability to listen, probe, question for insight and coach for outputs will increase the chances of receiving quality and honest unfiltered informa-tion. Members of the leadership team and an external Executive coach are best placed to give feedback in this regard.

Assisting the CEO to set up regular informal channels is also important. The simple act of walking around the organisation will elicit information over time. CEO clients o�en are surprised at how much information they glean by scheduling a 30-minute walk about in every o�ce they visit within the organisation. While at first the scheduled time seems excessive relative to every other task that is demanding of their time, the insights they receive are o�en more valuable.

Hosting regular lunches with a group of employees several levels below the CEO position regularly gives insights to the organisation. Some middle managers are wary of their employees being given access to the CEO but this process does yield results. Informal meetings are not a once o� process but one that should continue for the whole CEO tenure.

SHOCK 5: Who is my boss, remind me?

New CEOs all say the same thing, reporting to a Board is unlike anything they have ever experi-enced. In most cases the Board hired the CEO and can fire them. With increasing scrutiny on Directors and their professional liabilities, individual Board members are becoming more micro in their views of CEO performance. A Board is not necessarily a uniform entity in its own right. Each Board is unique, made up of individual professional or industry Directors of varying capability and background. Their knowledge of the company and industry may vary. The CEO and leadership team o�en find themselves not only reporting to the Board but o�en educating the Board on industry trends and contextual decisions.

CEOs who are promoted internally, o�en are tainted by their predecessor for be�er and for worse. Their level of contact with Board members was o�en minimal before promotion. The CEO needs to learn to manage the relationships with each Board member but particularly the Chair of the Board. The relation-ship between CEO and Chairperson is the moderator of success for the CEO. The be�er and experienced Board Chairs will be both a confidante and Mentor for the CEO. This of course is not the norm.

Executive Transitions

Shocks for First Time CEOs andHow to Support Their Transitions

For CEOs who report to a group CEO, they have an added layer of complexity to manage. Inevitably they will have access to the Board for key presentations and business updates. They need to manage their leading CEO as well as questions from key Board members. First time CEOs o�en make mistakes in managing the series of relationships that create complexity in their reporting lines.

Support 5 Help the CEO to understand the layers of complexity in reporting lines and how to navigate them successfully.

For listed organizations the CEO will have a Company Secretary who will manage the information flow to the Board in terms of Board papers, briefings, governance structures etc. First time CEOs should be encouraged to learn everything about Board processes and information flow from this person to expedite their experience.

Otherwise first time CEOs need to actively spend time investing in the Board relationships through one on one sessions, business updates, briefing papers for discussion and alignment meetings on major decisions before the actual Board meetings. Making this a priority in the CEOs diary is essential.

SHOCK 6: Where is the time for me and with whom?

Finally the biggest shock for first time CEOs is the sheer lack of time in their diary for anything other than work. Every social function becomes a work related one. Many habits that helped develop their career success go out the window such as exercise, reflection time, networking across the industry and social time with close friends and family. Learning to trade o� commitments becomes an essential skill to master. The two biggest areas that first time CEOs regret trading o� are maintaining their personal health through regular exercise and losing regular time with family.

There has been much wri�en else where about the important connection between health and cognitive sharpness, energy levels and personal resilience. Ironically the one position in an organisation that needs the person to be as sharp as they can, energetic as possible and resilient to manage the various slings and arrows coming their way is also the one person we don’t not allow the time to take to remain fit and healthy. Instead we expect they will be in meetings from early morning until late evening, eat whatever carbohydrate laden food is provided in the venue and ask they make up for lost time on their weekends. We then wonder why they gradually lose their performance edge.

For public organizations the CEO salary is reported in the business and wider press. Many first time CEOs find this intimidating for family members that are unaware of their ‘real’ position in the organisation. Friends of the CEO are also o�en intimidated by this new rise in stature of their buddy. Relationships change. There is no doubt about that and li�le to be done to manage it. Many CEOs say that over time their friends become fellow CEOs for that very reason. One real reason for first time CEOs stepping down a�er a three-year period citing family reasons as the cause, is that they are unable to adjust to the social changes that come with the title and responsibility. Money is not everything, it would seem.

Support 6 Help the CEO to manage their time to allow for oscillation, relationships and recovery

Peak athletes do and so should CEOs.

As simple as it sounds an e�ective EA can really help the CEO to manage diary commitments. According to a recent McKinsey’s report, successful CEOs enlist their EA to align their diaries to the organisation’s strategic goals i.e. to ensure they are spending adequate time on each of the core strategic imperatives. With that I have noticed successful CEOs also mapping out time for exercise and regular non-interrupted time for family. They get very focused on ensuring they are present for all important family functions.

First time CEOs may need help in managing the competing demands of their time and in taking time to a�end to the most important priorities in their diaries. Those close to the CEO can remind them to make time for important personal relationships as some will naturally dissipate. Taking an active interest in maintaining their health and ideally perusing active involvement in some sporting activity will assist their overall performance.

Achieving the hard earned position of CEO for the first time is a great testament to an individual’s e�ort and talent. Given the significant impact people in these roles have and the level of investment made to develop and secure them, it is only good investment protection strategy to creating a support structure such as that outlined here to set them up for success.