Be a Better Leader: 10 Essential Qualities of a CEO

If you’re hoping to be an effective CEO, you’ll need to have the right mix of leadership qualities. You’ll want to have the respect of your employees while holding them to high expectations. And you’ll need to know how to structure your organization so it is efficient and forward-thinking.

Curious to learn more? Read on to learn about the 10 essential qualities of a CEO!

1.Be a Visionary Leader

To gain the confidence of your team, you need to have a vision. And you need to know how to articulate that vision. Even if you’re not the world’s greatest orator, you can use company meetings or talks to empower your employees.

Spend time developing a mission statement, and involve your team in crafting it. Strategically incorporate your statement into company emails and documents. And place signage around the office to remind your team that this mission drives their work. 

Don’t just stop at a mission statement, either. Provide examples of your mission in action. You’ll gain more buy-in, particularly among new employees looking for their sense of purpose. 

At an annual meeting, you could feature a video recapping a particularly successful fundraiser. If your mission is to help those in need, you can show how a gala or activity generated new donors. And then you can show where that money is being used.

2.Know How to Adapt

To be a good CEO, you need to be flexible in unexpected circumstances. You’ll hit sales slumps or lose personnel, so you need to know how to respond. The best leaders always will be plotting alternate paths and solutions for challenging times.

Schedule periodic meetings with your top stakeholders to field ideas when you begin to sense a change is coming. For instance, this could involve plotting potential restructuring ideas. Or it could be changing your budgetary practices to build up the reserves.

If your top salesperson quits, don’t panic. Instead, look at the moment as an opportunity to encourage other employees to step up. And consider how you might adjust a new job posting to reflect different needs.

3.A Good CEO Can Delegate Responsibilities

You can demonstrate leadership skills by delegating responsibilities to those around you. Not only will this lighten your load, but it will empower your employees. A CEO who makes too many executive decisions will polarize employees and head toward burnout.

Are you nervous about handing over duties to unproven workers? You still can do this by establishing checkpoints along the way.

Request weekly or monthly updates. Assign a more experienced employee to manage the task. That way you can help correct issues along the way and maintain a level of quality control.

And if you’re wondering what new initiatives to take on, use data to your advantage. You’ll need people committed to gathering data and information that can help you make informed decisions. Turn to Peter Dodge Hanover Research for assistance with your research needs.

4.Essential Qualities of a CEO Include an Optimistic Perspective

You set the tone when you’re a CEO. Because of this, you must maintain a sense of optimism. You’ll cast a shadow over the organization if you don’t.

Even if you’re nervous about the forecast for growth, there are ways to keep a positive mentality. You don’t want to be blindly optimistic, so it is important to acknowledge challenges. But you need to show employees how good strategies coupled with their hard work can lead to a stronger outcome. 

When your employees score a new client or exceed expectations, pen a personal thank you note to them. Showing your gratitude is another way to nurture a culture of positivity.

5.Be Aware of Your Shortcomings

Even if you’ve ascended the ranks and hold the best educational pedigree, you won’t be good at everything. It’s important to acknowledge this within your headspace. It’s also important to acknowledge when those deficiencies show up in the workplace.

You may rush into decisions. Or you may forget to communicate with your subordinates promptly. You can compensate for these issues by communicating them to those in your closest circle at work.

You also can ask for help. A good CEO will ask an administrative assistant to help them stay on top of communication. And a good CEO will ensure that all major decisions must pass through a committee of people before being enacted. 

Be sure to show humility as a leader. Know that sometimes you’ll make the wrong call. But in the aftermath, you’ll garner more respect if you own up to it.

6.Think Creatively to Be a Good CEO

You need to be a creative thinker to be a good CEO. You can’t stick with the same old approaches to problem-solving. Instead, you need to be willing to try different approaches to generating leads or sales.

Creative thinking can apply to your marketing strategies. For example, you may want to look into rebranding your organization with a fresh style that suits your image. Or you may need to rethink the process you use to engage with clients at your retail store. 

Create collaborative workspaces and community rooms for meetings. Let employees get out from behind the walls of their cubicles. Knowing how to be a good CEO means trusting your employees to take risks, too.

7.Be Able to Take Risks

Another one of the most important qualities of a leader is a willingness to take risks. When you play it safe, you give your competition a better chance of overtaking you.

Risk-taking doesn’t have to translate to making careless decisions. But you may need to be bold enough to be the first company to invest in a particular type of product. Similarly, you may want to try a new work schedule to enhance productivity or allow hybrid work options.

Within the office, create a climate that permits risk-taking. If someone feels like they always will be shot down when they offer up an idea, they’ll stop doing it. Instead, create a space where employees can toss out ideas freely. 

Encourage your team leaders to speak from a point of compassion. Train leaders, too, so they know how to establish a comfortable space where employees are primed to reach beyond their comfort zones.

8.Establish a Strong Company Culture

Ultimately, you want your best employees to stick around. How well you pay them is one factor that can influence retention. But your ability to create a good company culture is another reason people will stick around.

All of this hinges on good communication. And this starts from the moment you interview a prospective employee. It also includes helping long-time employees feel appreciated — and motivated.

You can create a good culture through initiatives that impact employee wellness. Schedule a fun holiday party each December, and offer a company picnic in the summer. Invest in fitness equipment for an office gym or start a lunchtime workout club.

Add team meals to the monthly calendar. Offer retreats or other professional development opportunities for team members. And spotlight employees who are especially helpful around the office.

9.Coach and Mentor Employees

Wondering how to be a better leader? Sometimes taking a more personal approach is best. When you’re heading up an organization or division, you’ll inevitably have people working under you.

Use your position as one where you can help coach your employees. Schedule one-on-one meetings aimed at understanding their strengths and weaknesses. Or schedule lunch meetings with small groups of employees centered on a topic related to their area.

They’ll appreciate that you’re invested in their growth. They’ll appreciate this even more if it comes with an incentive. When an employee performs well, reward them with a bonus.

10.Listen and Learn

It’s also vital that you’re willing to listen to feedback and learn from mistakes as a leader. If you’re too confident or inflexible, you risk losing the trust of those around you. 

Offer opportunities for employees to give you feedback on decisions or new initiatives. This can be as simple as holding a meeting. You can do this in smaller teams to encourage greater participation among more introverted employees.

Or, to keep things anonymous, use an online survey to gather information. People will feel bolder to express specific concerns. Do this at least once a year to evaluate big-picture workplace satisfaction, and on a smaller scale for certain projects.

To go a step further, compile the results and share them with the team. Knowing how to be a better leader means digesting and implementing feedback. And you need to show your employees how their feedback impacts future decisions. 

Embody the Qualities of a Leader

When you know the essential qualities of a CEO, you can start to mold your leadership style. You’ll want to be personable and compassionate, but you’ll also need to be driven. Be open in your communication with employees.

And most importantly, surround yourself with trusted colleagues to bring out your leadership skills. For more tips to stay at the top of your game, check back for new and informative articles.