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Arun Chandra, the past CEO of SumTotal Systems speaks about the multi-faceted role of a CEO.
The role of any senior leader, particularly the CEO, is multi-faceted and therefore requires many different attributes to be successful. The environment today requires the CEO to be strong in most if not all aspects. However, the emphasis does vary based on the nature of the opportunities and challenges facing a company. This is not to minimize in any way the importance of having the right team and talent working with the CEO as success is determined by the overall team and not any one individual.
In my most recent role balance, focus and communication became some of the key areas of emphasis while taking the company through a successful private equity transaction. Fortunately, the outcome was good for the shareholders in getting a sizable premium and liquidity in a tough economic environment.
Balance can come in many different forms. In this example of a public auction between competing suitors it was particularly important to keep a balance between running the business and unlocking value through the transaction. It was also important to keep a balance between the current shareholders, the future owners, the Board, customers, and employees. It was not an either-or situation but as with most key business challenges it required a balance between competing priorities.
Focus is always important but this situation required a relentless approach in keeping the team singularly focused on serving customers and delivering quarterly results. During any transaction it is very easy for the attention to drift away from the external world and shift towards internal issues including speculation on the future. It becomes very important for the senior leaders to lead by example by focusing on the market, customers, and competitors to keep the business running smoothly. On a related note, one may argue that leadership by example is perhaps the only form of leadership regardless of the situation and environment.
Communication with key constituents is a key success factor in any situation. However, when there is uncertainty about future ownership of the company the need for clear, concise, and frequent communication becomes paramount. Both the practical aspects such as customers’ concerns and the emotional aspects of the people involved require a much richer level of communication than otherwise. Strong communication enables proper expectation setting which is fundamental for successful execution.
The role of the CEO is unique in many ways but perhaps the one that stands out in this context is the versatility required to adjust to the circumstances and bring to bear the skills that are most required at that time.
