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Why should the focus of first-time CEOs be on people skills and relationship building to ensure they feel thoroughly prepared for the demands of their role?
According to Harvard Business Review, two out of five new CEOs fail within their initial eighteen months. It is not their experience or expertise that is at fault; but rather their deficiency in people skills and inability to cultivate the essential relationships with the key points of contact in the company
The high failure rates are evidence of too much focus on the selection process and not enough following up to ensure integration is deeper than mere induction meetings. Too often, the new CEO is expected to be out of the blocks on day one and delivering the items on the ‘100-Day Plan’. Arguably, one of the biggest jobs in the world is President of the United States; there is nearly a three-month gap between the declaration of the election’s winner to the inauguration day when they take up office, and a transition team is appointed to help manage the process.
In the UK, Keir Starmer’s Labour Party shadow cabinet have been working with the Civil Service since the beginning of the year, with the approval of the current Conservative Prime Minister, to help the transition that would arise as a result of a change of government at the next general election.
However, there is a notable absence of support mechanisms tailored for new CEOs. As a consequence, it is unsurprising that seven out of 10 leaders are said to suffer uncertainties about their experience or skills being adequate. In this article I will discuss why the focus for first-time CEOs should be on people skills and relationship building to ensure they feel thoroughly prepared for the demands of their role.
How far do technical skills take you?
Often, there is an expectation in the business world for individuals who have reached the top position within an organisation to come pre-loaded with all the necessary experience and skills required for the job. New CEOs often have a track record of success and may seem destined for leadership roles, exuding confidence and making the transition appear effortless to onlookers. However, the reality for a first-time CEO is often quite different. While they may have possessed sufficient skills to earn the promotion, they now find themselves taken out of their comfort—and sometimes competence— zone and put into an unfamiliar position of overall responsibility that they have not experienced before to this degree. This transition is frequently made without adequate support and coaching to ensure optimal performance. Despite their technical expertise, new CEOs commonly struggle with thoughts like:
Under these circumstances, it is how this CEO then builds his/her relationships that will set him/her up for success. There is real pressure in this new role; for most, it is at a level that they have never experienced before. Everyone in the company depends on you. And their families and dependents do too. Their livelihood depends on the success of the company and, therefore, on you. As a consequence, some choose to wear the armour of a supremely confident image despite what is actually going on underneath. What this behaviour can discourage is the willingness of those around such a confident leader to speak truth to power, as such advice is not received well. Whilst it is true that people look at you differently when you are appointed as a CEO, this does not imply that you should not acknowledge when you require the assistance of others. Genuine confidence is evidenced when a leader seeks answers, builds people skills and creates an environment that encourages debate and differing viewpoints. The capacity to understand others’ perspectives and empathise is becoming increasingly rare, yet it is a vital tool to a highly skilled leader—be it business or politics. Only by relying on their people skills can a leader foster an environment where their own and their team’s technical expertise truly stand out. The CEO Winner’s Circle examines the relationships that first-time CEOs need to get right in order to be successful.
Relationships are unpredictable
The ‘CEO Winner’s Circle’ highlights the key relationships first-time CEOs should be building both internally and externally. It is important to recognise that it all starts with you, and that is where you should place initial focus. An athlete who competes against others will be trained to make initial moves or set plays to defeat an opponent, but the truly great individuals and teams transcend that and play what is in front of them. They override the set play that the hours of practice have tried to instil as second nature and just go for it: the drop shot in tennis, the sidestep and outside break in rugby or, most obviously, the strategy and reaction on a chess board. Every individual is different amongst all these vital connections and there’s no fixed answer that can be applied in all cases to any particular circumstance. Arguably, there is no definitive answer in any relationship scenario, as some individuals may have a unique reaction to the person before or the next person. While there are probabilities, there is no certainty. As Mike Tyson famously said in answer to the question about whether he was concerned about his next opponent’s strategy to defeat him: “Everyone has a plan until they get hit.” This is why it is crucial for new CEOs to continuously refine their people skills to effectively influence across diverse settings.
The importance of engaging with a professional coach and mentor to develop the necessary people skills
While first-time CEOs may anticipate the tasks they must undertake, they frequently find themselves ill-prepared for the psychological and emotional intricacies and impacts associated with the role. This is why coaching, mentoring, and business books all handle this critical area of relationships differently. Business books tend to follow a format of the top five things to do/avoid in order to succeed and that is very difficult to do with relationships.
The ‘If ‘x’ happens, then do ‘y’’ approach works less well here. However, first-time CEOs need a safe sounding board and a wise head to be able to think things through and learn on the job which is where coaching and mentoring add value. Whether you are a first-time CEO or an experienced leader or aspiring to become one, having a coach or mentor can be crucial, providing a confidential space to voice challenges and concerns that you might be experiencing in and out of the workplace. As a new CEO, communication barriers can exist, and it might feel like you are speaking a different language to other individuals—maybe the frequency of it, possibly the level of detail, or understanding of why.
This is where a good coach and mentor can act as an adaptor, to help you make connections that just weren’t there before. Often, when coaches and mentors discuss a real example from their pasts, it can unlock a parallel problem the current client is fighting with, helping them to have a ‘light bulb’ moment to see their issue differently. When faced with insurmountable problems, the solution can seem miraculous. Fundamentally, when faced with challenges, it is the support, guidance, advice, and skills of their surrounding network that will aid new CEOs in persevering
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