That is the question posed by McKinsey & Company, and I’m sure you will be most interested in the answers they have come up with.
To explore this question, McKinsey mined their extensive proprietary database on CEO performance, which includes 25 years’ worth of data on 7,800 CEOs from 3,500 public companies across 70 countries and 24 industries.
Based on this research, they were able to determine the 6 main elements of the CEO’s job, and the mindset with which each of these elements should be approached. They include:
- Corporate strategy – focus on beating the odds
- Organizational alignment – manage performance and health
- Team and processes – put dynamics ahead of mechanics
- Board engagement – help directors help the business
- External stakeholders center on the long-term Why?
- Personal working norms – do only what you can do
They go on to provide the 18 specific practices CEOs should adhere to when fulfilling those responsibilities that are unique to their position in the organization.
As an example, the practices under Corporate Strategy fall into three categories:
Vision: Reframe what winning means
Strategy: Make bold moves early and
Resource allocation: Stay active.
As if all of this outstanding information wasn’t enough, the article concludes with a comprehensive framework, using the 6 elements and 18 practices, to allow CEOs and Boards to gauge performance and prioritize improvement.
This is truly a goldmine for CEOs in any industry or type of organization, and I hope you will take the time to read and reflect on everything that is offered here.
To read the full article, you can go to https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-mindsets-and-practices-of-excellent-ceos