Avoiding the 'CEO Slide'

Entrepreneurial CEOs share some common traits. Among them are a bias for action and an ability and willingness to tackle problems quickly and effectively. So far, so good. However, there comes a time when this inclination can work against the growth and development of the enterprise.

As the business grows, the organization takes on senior level executives, managers, and supervisors. Responsibilities and decision-making authority are delegated through the company depending on the organizational structure and design. As a natural consequence, the role of the CEO (and what the business needs from its CEO) changes. As one senior leader once told me “You can’t conduct the orchestra and play first violin at the same time.”

It's a fact of organizational life that challenges, opportunities, and problems are going to arise. The difference between enduringly successful organizations and those that plateau can be found in the way in which these are addressed. While it may be quite natural and instinctive for entrepreneurial CEOs to dive in and solve every problem that arises, doing so habitually can derail organizational growth. Here’s why.

Consider a competent senior manager who confronts a problem. The CEO learns of this issue and steps in with the answer/solution. Problem solved and time to move on. But what just happened here?

The manager in charge was not called upon to address a problem that rightly falls within their responsibility. Instead, the CEO jumped in and took care of it. Maybe the manager will observe and learn for next time. But what if next time, the same thing happens. Most likely one of the following.

An “A” player manager will become frustrated by what seems like a lack of confidence in their ability to creatively address and solve problems. A “B” player manager may become comfortable with this arrangement, and over time, will learn not to put themselves on the line by making decisions which may not work out. Fortunately for them, they will not have to. A “C” player manager will find this to their liking and will settle in the long haul. Yikes!

It is quite natural for entrepreneurial CEOs to want to be close to their business. As one owner reminded me some time ago, “it’s my money, and my signature of the bank covenants.”  Yet, as the enterprise grows, trust and confidence in the senior leadership team, managers and supervisors take on greater importance. CEOs of Leadership Organizations learn to balance the need to be “on top of the business” while focusing primarily on CEO level responsibilities and encouraging and rewarding creative problem-solving abilities among team members. Not easy, but necessary.

For more information on ways to improve the performance of your senior team, contact me at joe@ajstrategy.com or visit my website: ajstrategy.com.

The preceding content was provided by a contributor unaffiliated with Printing Impressions. The views expressed within may not directly reflect the thoughts or opinions of the staff of Printing Impressions. Artificial Intelligence may have been used in part to create or edit this content.