What Makes an Exceptional CEO?

To run a business in theseturbulent times, you need a steady hand at the wheel. At any moment, a sudden downturn in the economy, a scandal, or activist shareholders can cause a sudden reversal of fortune. Think Enron’s Ken Lay and his brazen lies, or Jonathan Schwartz’s inability to monetize Sun Microsystem’s Java software.

By contrast, an exceptional CEO can deftly pilot their companies through angry seas. Doing so is no magic act – by leaning on their skills and experience, they avoid disaster and position their companies to succeed.

Based on our research, here are some qualities that can make a CEO exceptional.

Experience

Soft skills are a big deal in business, but sometimes, there’s no substitute for relevant industry experience.  Consider the case of George Shaheen, former CEO of Webvan. During the dot-com mania of the late 90s, this grocery delivery service brought in Shaheen to fuel their nationwide expansion.

George enjoyed great success leading Andersen Consulting (now known as Accenture). But within two years, he had driven Webvan into the ground. What happened? While he was one of the world’s best business consultants at Andersen, he somehow failed to grasp the realities facing grocery retailers.

Margins in this sector are razor-thin. And as a new market entrant, Webvan had no leverage with their suppliers. As a result, Webvan wasn’t able to secure price points low enough to make their business model viable.

Contrast that with the experience of HUMBL CEO Brian Foote. In 2019, Charlie Lass and Eric Koesner recruited Brian to co-found this up-and-coming payment company. They wanted this app to be powered by the blockchain. In this respect, Brian Foote was perfect, as he had in-depth blockchain experience from his former startup. Combine that with 20 years of tech sales experience, and its no surprise HUMBL has gone from idea to a 5 billion USD market cap in two years.

Decisiveness

The speed of business today is downright blistering, and it shows no signs of slowing down. In this environment, indecision can be deadly. Thus, the ability to make sound decisions quickly is crucial.

Now, this may sound counterintuitive. Shouldn’t a CEO, who is a firm’s thought-leader, take the time to consider every angle? At one time, that may have been a feasible approach. However, in this age of disruption, every second counts.

Ever hear of Kodak, MySpace, or Blockbuster? Each firm was the king of their niche until a swifter upstart knocked them off their perch. They thought they could sit back and make an informed decision. Their indecision sealed their fate – today, they are all cautionary tales.

Traditionally, those in the business world had frowned upon snap decision-making. But times are different now. If the downsides of a choice aren’t fatal, acting fast is best.

An Ability to Fail Forward Fast

Of course, some of these rapid decisions won’t work out. So, when things go south, the ability to quickly correct course is essential. Here’s why – in 2021, there’s more information out there than anyone could possibly digest. So, it’s not possible to have perfect information in any situation.

At the same time, humans are notoriously bad at predicting the future. For an example of this, you needn’t look any further than the Philadelphia Federal Reserve. In November 2007, they issued a report that assigned a 20% probability of negative growth in 2008. We all know how that turned out.

CEOs, like any other flesh-and-blood human being, make mistakes. Bad outcomes are inevitable, so it’s best to embrace them as learning opportunities. So long as these leaders take reasonable measures against fatal errors, failing forward fast is the best approach in today’s business environment.

Having An Outside Perspective

When it comes to problem-solving, internally-promoted executives are a product of their own environment. Often, this can pose serious challenges, as they may struggle to break out of thought patterns that caused the issue in the first place.

For instance, let’s say a firm is in danger of declaring bankruptcy. If the underlying issue is an out-of-control cash burn rate, looking within for answers likely won’t help. In this case, the current executive team has become accustomed to throwing money at problems. So, expecting any of them to bring in a regime of austerity is, at best, wishful thinking.

In instances like this, it’s often best to bring in external talent. CEOs recruited from outside bring a fresh set of eyes to an organization. Like a diver exploring the ocean bottom, they notice the water that the fish take for granted.

Who’s Captaining Your Ship?

When a sudden gale kicks up, having an even-handed, decisive skipper in charge can make the difference between life and death. The same logic applies in commerce.

The business world is more unpredictable than ever. If your CEO is dismissive or is in denial over societal trends, your business will soon join Webvan, Blockbuster, and Kodak on the bottom of the Mariana Trench.

But if they understand the necessity of acting and adjusting fast, your business will have the best possible chance of surviving any unexpected crisis.