The King is dead! Long live the King! This strange sounding phrase was, and still is, used to announce the death of an English monarch and the succession to the throne of a new one. But there is a lot of truth in this phrase when applied to any leadership position, even more so in the modern business world.
The technological revolution has made it virtually impossible for an effective CEO to get away without understanding technology.
Doug Leather, Columnist, ITWeb
The demands of an Information Age business leader or company CEO are now vastly different to those of the baby boomer generation - not only has technology revolutionised the way a company is run, but even more critically, mindsets inside and outside companies have changed.
The demands placed on a CEO, say 10 years ago, are different to those of today, and will be even more different 10 years from now. In this interim phase, where many companies are still technologically conservative but are starting - or being forced - to move forwards, a good CEO should be e-commerce adept and old economy tested.
The technological revolution has made it virtually impossible for an effective CEO to get away without understanding technology. But it is not only the technology issue which needs to be addressed - the X-Generation is accustomed to faster, quicker and better - in all areas. This applies equally to career satisfaction. If they do not get it at company A, they will switch to company B at the drop of a hat.
To meet these changed demands and expectations requires a new age mindset that strategises the tactics needed in fighting the "war for talent". The number one priority facing business leaders today is the attraction and retention of intellectual capital.
Previously, a prospective CEO had his strengths and weaknesses identified, and then his strengths were buffed up and he or she went on a course to try and build up the weaknesses. This is no longer the case as it is crucial that the modern executive has the ability to choose a team that can underpin his or her lesser-developed competencies. This is executive functioning at its most modern.
Unrealistic
Business today has become so complex and so diverse; it is unrealistic to expect any single person to be able to do everything. If, however, the executive is able to pick a team that can do those things that he or she cannot do, than that skill is worth as much as being able to do the job oneself.
So what do leaders do? They set the course of the company, they focus on performance, and they communicate and create the appropriate architecture and infrastructure that enables the set course to be delivered upon. Failed business leaders do not adapt to the new economy and do not accept that things are changing at an incredibly fast pace. Another critical area to master is relationships and communication as poor relationships with peers and colleagues can lead to the failure of the leader.
From a personal point of view, a successful CEO always needs to be visible, both to the internal organisation and outside it. The worst mistake a CEO can make is to drift out of sight. One has to be a contributor, an articulate communicator and have vision. Leaders have to constantly re-invent themselves, to present themselves as having the ability to make the impossible happen.
What then are the core competencies that a CEO needs? A successful executive or CEO will need business acumen and the talent to provide innovative management - the ability to think outside of the box and be good at bringing the creative ideas of others to market.
Other critical personal assets include powerful analytical skills, superb instincts, tenacity and perseverance. Good people skills - from the perspective of having a feel for talent - are also much in demand. As is obvious from this short list, some of these skills are natural attributes - either a person will have them or they will not. The ability to apply different levels of competencies and leadership styles will maximise the mix of intellect, passion, energy and ambition that is needed to run a modern successful enterprise.
Tactical withdrawal
A good leader also knows when to cut his or her losses, or when to persevere with a project. The skill of knowing when to make a tactical withdrawal is just as important as being able to identify a real opportunity.
In this customer-centric age, a CEO also has to have customer focus and perspective; the ability to develop direct reports, to be a "people building" person. By this I mean that a successful business leader is able to address his or her team`s developmental needs, to be able to provide challenging and stretching assignments, as this is all part of building an effective team.
It is vital for a successful CEO to have self-knowledge and emotional maturity. An understanding of one`s own capabilities and abilities, and understanding that different situations may call for different approaches, will stand any prospective business leader in good stead.
Which brings me to the issue of age: How old is too old and how young is too young, particularly for CEO or executive positions?
In the new economy there is an association made between youth, energy and innovation. However, where this expectation hits the wall is that people overlook the value of experience and wisdom - and try as one might, there is no getting round the fact that both these attributes come with age alone.
In Japan, many big companies are known to actively endorse older leaders as a means of ensuring experience in the organisation. While I am not necessarily advocating this scenario, it is true that the Japanese CEO`s wisdom, knowledge and understanding is far superior to anyone half their age, no matter how many whiz-bang kids there may be out there.
Wrapping up
Strategy is worthless if it cannot be implemented. Theoretical knowledge is fine, but without the practical experience that a person can only gain through years of actual implementation and knowledge building, it is difficult to find the correct combination of skills necessary for a modern business leader.
A modern CEO needs to have an understanding of what makes a successful and competitive business in the new age. He or she has to underpin and support the need for competitive advantage, to be able to roll out a strategy, service or product that will add value to the enterprise in real terms. The ultimate measure of the new business leader is the ability to sustain a competitive advantage!
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