Newly appointed CEOs have a lot on their plates. Meeting the competing needs and demands of stakeholders, commercial partners, and staff, balancing short-term profitability with longer-term growth and sustainability, and ambitious financial targets are just some of the inherent challenges faced by those in new senior leadership roles.
But they’re appointed with good reason, and the steps every new CEO takes in their first six to twelve months on the job will play a pivotal role in not only their own personal leadership journey but also the success of the business.
Are there any special qualities that make a CEO stand out? As evidenced by the findings of Robert Half’s Boardroom Navigator 2023, a global survey of 400 executive leadership teams and boards of directors and 50 private equity investors, modern leadership styles in 2024 and beyond will be shaped by agile and creative decision-makers. A new CEO needs to know how to make meaningful connections as well as be able to lead teams (and their businesses) through periods of extraordinary change and ongoing global economic and political uncertainty.
CEOs have a unique opportunity to set the cultural and strategic tone of a business. Whether they have been promoted from within or hired from outside, they know that their performance and behaviour is going to be closely and widely scrutinised. So what should a new CEO’s top priorities be? The first year is a pivotal time for them to learn the business and its people; to clarify, communicate, and implement their vision and goals for the organisation.
To explore this topic further, we sat down with Craig Bernhardt, a global acquisition specialist and Robert Half’s Senior Managing Director of Executive Search, and our Managing Director of Executive Search, Gareth Whalley, to review the top 6 things that should be on every new CEO’s checklist.
No CEO checklist is complete without a thorough understanding of the story, history, values, and people of a business, all of which provide invaluable ‘insider’ insights into the business.
Craig has placed countless CEOs in his 20 years of experience and reflects on the importance of knowing what kind of business the new executive is walking into.
“The experiences and expectations of owner-founders, board members and a CEO’s fellow C-suite leaders, even those of previous CEOs, are all going to help shape the experience of a new leader,” explains Craig Bernhardt.
“Most of this knowledge will probably come fairly naturally in the early days [of the role], but time spent in the business will reveal deeper insights. Regardless, the depth and breadth of the company’s story, and the stories of all the people of influence within it, are really important to understand and will help a CEO in making informed decisions that align with the company’s core values and mission.”
While the business context may give some background to why the business appointed a new CEO, being crystal clear on the objectives for the new appointment is vital. Are they expected to lead a restructuring or cultural change, drive sales growth, or oversee a merger or acquisition?
According to Gareth Whalley, “once a new CEO has a clear understanding of the business context, they should create a detailed roadmap for their first year. This plan should outline key goals and the strategies to achieve them, which in turn provides a clear focus and direction for their leadership.”
“Cracking the company culture code should be top of any CEO checklist,” Gareth continues. “Talking frankly with employees will help a CEO understand the existing culture, but what is really needed is to look beyond the way things have operated in the past; to step back from the current picture and to see how they can actually develop the culture to better support the business’s goals.
“It is not an easy task; but one that will ultimately help them develop strategies to foster a positive, productive, and aligned workplace environment in order to achieve their objectives.”
Effective communication is one of the cornerstones of successful leadership; as a speaker and communicator, the CEO, while they may not be personally responsible, sets the communication tone and style, direction, and objectives for others to follow. Active listening – to employees, customers, and stakeholders – matters and is key to effective communication.
“Stellar communication skills may not come naturally to all CEOs,” cautions Craig Bernhardt. “While they need a sufficient level to land them the role in the first place, they should seek professional help to improve them. Communication is the backbone of a CEO’s role, especially at times of economic and geopolitical challenges and cultural change, during which open and effective communication channels throughout the organisation are imperative.”
A CEO checklist should also include the crucial skills of relationship building and networking. Establishing trusted relationships with key influencers within the company – which requires an understanding and navigation of often delicate internal politics – as well as with external partners, regulators, industry peers, even government representatives (where applicable), is essential.
These networks provide valuable support, insights, and opportunities, and help the CEO stay informed and influential in both internal and external arenas.
“Strong social and professional connections will enable a CEO to drive the company forward, adapt to inevitable challenges, and capitalise on opportunities that arise," says Gareth Whalley.
CEOs need access to the right data and information to make the best decisions possible on the company’s behalf. In the now-famous analogy for the importance of good data in being able to make informed decisions, Sherlock Holmes proclaimed, in 'The Adventure of the Copper Beeches' by Sir Arthur Conan Doyle: ‘Data, data, data. I can’t make bricks without clay.’
Distilling key metrics in order to leverage data allows CEOs to identify trends, uncover new and emerging market opportunities, and address potential challenges proactively, rather than reactively. It also helps them guide strategic decisions, streamline (and optimise) their company’s operations, and drive overall business efficiency.
Any new CEO, whether they are joining a startup or large corporation, or even transitioning from a different sector, will need to develop their own checklist or guide. Startup CEOs may be more hands-on with product development, for example, whereas those moving into a role from a different sector may need to work harder to build trust. Yet despite the differences, their ultimate goals are the same; set the tone up front, take time to build genuine connections and relationships, and support people and teams in their own growth. Critically, a CEO’s success doesn’t always have to happen in the boardroom; you never know where a casual conversation might lead.
What should a CEO do first?
A CEO's first priority should be to understand the business context. This involves learning the company's history, values, and culture, as well as engaging with key stakeholders such as board members and employees, even customers. Building a clear picture of the organisation's current state, challenges, and opportunities will provide a solid foundation for making informed decisions and setting strategic objectives in due course.
How do you measure CEO performance?
CEO performance is measured through a combination of financial metrics, such as revenue growth, profitability, and return on investment, and non-financial metrics like employee satisfaction, customer satisfaction, and strategic goal achievement. Depending on the company, their ability to drive innovation or navigate cultural change might also be considered as performance benchmarks. Regular performance reviews (by the board or feedback from stakeholders) are also essential in assessing a CEO's effectiveness.
What makes a great CEO?
A great CEO is a visionary leader. They have an innate ability to inspire and motivate teams and will have the conviction to make tough decisions when it really counts. They will be strategic thinkers, adaptable and effective communicators, and will set the tone for company culture. A great CEO will also be skilled in building and maintaining enduring relationships with stakeholders at all levels.
What are the biggest challenges facing CEOs today?
Whichever business they lead, the biggest challenges facing today’s CEOs are undoubtedly navigating global economic uncertainty, managing digital transformation, and adapting to continued rapid technological changes. They must balance short-term financial pressures with long-term strategic goals while addressing increased stakeholder expectations around environmental sustainability and social responsibility. Global competition is fierce. Regulatory compliance benchmarks continue to evolve, and workforce dynamics, including talent retention and remote work management, are all ongoing challenges facing CEOs.
