THERE is nothing worse than a company that has to keep changing its chief executive officer (CEO).
It simply means the CEO has failed to deliver or has not been able to meet the expectations of the board.
Either way, it does not reflect well on the company, especially if it’s public listed, as something hasn’t gone right in the company.
But down the chain of command, there are CEOs who struggle to inspire or lead effectively.
While a popular leadership may not necessarily provide a strong bottom line or has a clear vision for the company, or even industry, a respected captain is necessary when the ship is going through choppy waters.
Leadership is a complex and multifaceted skill, and even those in high positions like a CEO can face challenges. The debate over whether a leader is born or trained is not something new.
For a start, the CEO must have a clear vision and plan of how he or she intends to take the company forward.
Without this, it can be difficult to inspire and guide employees toward common goals.
Even, a football club manager needs to tell his team what he wants, as well as to tell the board, what needs to be done over the next five years. Not two or three years.
It’s simple, the CEO needs to have regular town hall talks to share with the staff what needs to be done. The CEO can’t do the job alone.
But even if he has a brilliant plan, poor communication skills and the inability to share the broader vision with the staff isn’t going to help. Poor communication skill is a serious weakness.
Effective communication is crucial for leadership. If a CEO cannot clearly articulate their vision, goals and expectations, it can lead to confusion and lack of direction among employees.
The inability to build relationships is a deficiency. It is essential to build strong relationships and trust with employees, stakeholders and other key players to inspire loyalty and motivation.
The lack of emotional intelligence including empathy and to respect the staff, including those who are leaving the company after decades of service, is paramount.
CEOs who lack these skills may struggle to understand and respond to the needs and concerns of their employees.
They will not leave a legacy in a company’s history but simply be dismissed as a passing passenger by the staff when his tenure ends.
For CEOs in hard-pressed industries, there is always the need to deliver decent quarterly results but that will lead to focusing too much on short-term financial results at the expense of long-term growth.
But there is nothing worse than to hire a CEO based on his superb power-point presentation and talking skills during the interviews.
Impressive self-selling without having the necessary experience or skills to lead effectively will result in poor decision-making and a lack of strategic direction.
A toxic leadership style with authoritarian, micromanaging always leads to a negative work environment, leading to low morale and high turnover.
That comes to the main point – are leaders born or trained? Most industry captains will readily agree that is a combination of innate qualities and learned skills.
Leadership development programmes, coaching and mentorship can also help CEOs enhance their skills.
Not every CEO is born with good looks, charisma, confidence, eloquence and emotional intelligence.
Leadership skills can be developed through education, training and experience. Skills such as strategic thinking, communication and conflict resolution can be taught and honed over time.
Research from the Chartered Management Institute (CMI) found that an astounding 82% of managers in the United Kingdom are what they term “accidental managers” – they are promoted into management roles without any training.
While many go on to gain qualifications and undertake training, one in three (33%) among current managers and leaders have never received any formal management and leadership training, including one in four (26%) among senior managers and leaders.
CMI’s own research that surveyed thousands of workers found that 50% of employees with ineffective managers plan to leave their jobs within the next 12 months, compared to just 21% of those with effective managers.
Poor management or leadership is the key driver of low employee engagement, dissatisfaction and lack of motivation. Only 27% of UK workers rate their managers as highly effective.
It will be interesting if the Malaysian Employers Federation or other research groups can provide an understanding on how Malaysian employees rate their bosses, as good management drives business performance.
CMI’s research shows that managers who receive formal leadership training are significantly more likely to drive change, encourage innovation and effectively implement new technologies.
But that includes soft skills including communication ability to inspire employees, or more correctly, the team.
