Cracking the CEO Code: 7 Lessons and 6 Prep Moves for First-Time CEOs
Getting your first job offer as a first-time CEO is one of the happiest moments of your life. Realising the enormity of the task ahead will undoubtedly be one of the most stressful. As a new CEO, you will control elements that typically account for 45 percent of a company’s total performance. The good news is there are steps you can take from day one to set yourself up for success. These steps require commitment, not capital.
6 Key Actions for First-Time CEOs Before Day One
Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” This rings true when it comes to the preparation needed before starting as a CEO. Here are six things you should do before your first day:
1. Prepare a Ready-To-Go Message
Establish your identity, vision, and reasons for others to follow your lead. Create a clear and compelling message that communicates your background, beliefs, goals for the organisation, and leadership style. This will set the right tone and expectations from the start.
2. Do Your Homework
Conduct thorough due diligence by researching the company, studying financial reports, understanding market dynamics, identifying strengths and weaknesses, and getting up to speed on important issues. This prior knowledge will allow you to hit the ground running.
3. Build Rapport
Reach out to key stakeholders such as board members, peers, major customers, partners, and industry experts. Initiating contact before your first day will provide insight into their perspectives, help build rapport, and demonstrate your eagerness to learn.
4. Plan Your Onboarding
Prepare an orientation agenda. If one is not provided, be proactive and develop your own plan. This should cover meetings, facility tours, introductions to teams and processes, and opportunities to understand the business more deeply.
5. Secure Support
Have an open discussion with your family about the intensive time commitments and potential travel involved. Ensuring you have their support will be invaluable during this important transition period.
6. Recharge Your Batteries
Start your new role well-rested. Take time to recharge both physically and mentally before your first day. This will enable you to tackle the steep learning curve with energy and focus.
7 Important Lessons for First-Time CEOs
Success is not all preparation; much of it boils down to knowledge and expertise. Here are seven essential lessons to help you excel in your new position:
1. Master Time Management
Your time is your scarcest resource. The average CEO divides their time between people and relationships (25%), functional and business unit reviews (25%), organisation and culture (16%), strategy (21%), professional development (3%), crisis management (1%), mergers and acquisitions (4%), and operating plans (4%). With an average workday of 9.7 hours plus weekend and vacation work, mastering time management is crucial to avoid burnout and ensure effectiveness.
2. Define Your Strategic Vision Early On
Set your strategic vision from day one and get everyone to buy into it. Only 2% of leaders are confident in achieving 80-100% of their strategic goals. Establish clear, measurable targets and consistently review them to stay on course. Balance immediate profits with a long-term vision to ensure sustained success.
3. Make a Positive Cultural Impact
As CEO, you will significantly influence company culture. A strong culture impacts performance, teamwork, and innovation. Embed a culture that aligns with your business aims and guides hiring, reviews, and operations. Your leadership style will shape the culture, affecting everyone’s work and happiness, as well as the company’s bottom line.
4. Use Data Wisely, But Trust Your Intuition
While data-driven decision-making is essential, do not disregard your intuition. Use tools like artificial intelligence (AI) to manage data overload, but remember that intuition plays a crucial role in effective decision-making. Aim for a balanced approach that leverages both data and gut feelings.
5. Understand Financials Thoroughly
Financial literacy is crucial for CEOs. Ensure you understand your company’s finances inside and out. This knowledge will help you analyse reports, forecasts, and budgets, linking everyday activities to financial success. Financially savvy CEOs tend to run more successful companies.
6. Build Strong Relationships with Leadership and the Board
Establish solid relationships with your board and leadership team. The board can offer resources, wisdom, and connections, while a unified leadership team ensures effective division of responsibilities. Mutual respect, open communication, and transparency are key to maintaining strong partnerships.
7. Seek Mentorship and Develop Emotional Intelligence
Seek mentorship from experienced executives who can provide guidance and support. Additionally, focus on developing your emotional intelligence (EQ) and communication skills. Empathy, meaningful relationships, and the ability to inspire your team are essential for your effectiveness as a CEO. Invest in leadership coaching and continuous improvement to hone these skills.
Starting your journey as a first-time CEO is exciting but challenging. Preparation and continuous learning are key to success. By mastering time management, defining a strategic vision, making a positive cultural impact, using data wisely, understanding financials, building strong relationships, and seeking mentorship, you can lead your company to new heights. Remember, empowering people first begins with empowering yourself.