On a recent cross-country flight, I was seated next to a new CEO charged with leading a 400-person company into the upcoming year. We got to talking. When he learned what I did and how many other CEOs I had worked with, he asked me, “What are the typical mistakes that you see CEOs make?”
Naturally, I had plenty to say. Here are the mistakes I shared with him.
1) Failing to set clear direction
Setting clear direction at the top means that everyone is on the same page and working toward a common overarching goal. Everyone in the company must be clear on:
- Where the business is headed over the next few years
- What they’ll do this year to advance this goal
- What they’ll measure so they can know when they’re on track.
2) Not communicating the direction relentlessly
Setting a direction isn’t enough. Communicate—even overcommunicate—the message of the direction you’re taking and the tactics needed to advance that strategic goal.
Use weekly meetings to align the team, monthly meetings to debrief results, and quarterly meetings to review the last 90 days and lay out priorities for the upcoming quarter.
3) Managing by anecdote rather than managing to metrics
Set meaningful metrics for key areas of the business, such as revenue generation, operations, people, finance, and customers. Evaluate performance against these metrics so you know if you’re achieving the desired results.
This is more effective than making changes based on stories and anecdotes. Stories hold an emotional appeal but data makes a more convincing business case.
4) Failing to review and improve hiring, training, and retention methods
Continually review hiring practices, evaluate new employee onboarding, and expand training and development initiatives. This helps to not only attract the best new team members but also to retain and elevate current employees.
5) Failing to evaluate and improve processes and systems
Every business has processes and systems to:
- Attract new prospective customers
- Convert prospects into customers
- Bill customers and collect cash
- Attract, hire, develop, and retain team members
- Deliver operational results
- Provide internal administrative support and external customer support
It’s important to check for opportunities to streamline and improve these processes and systems at least annually.
6) Failing to celebrate successes
Want to drive future productivity and positive outcomes? Then acknowledge individuals, teams, and departments who achieve their goals or show extra effort. Match the appropriate type of recognition to the individual or group to maximize its impact—personalization goes a long way.
Turning around these six shortcomings can have a major effect on how well a company can execute its plans and deliver desired outcomes. Note that you need to fix each of them to get the best results. For example, it’s self-defeating to attract and hire great team members if you then fail to communicate a clear strategic direction to them.
Be honest: are you making any of these mistakes in your business? Take this opportunity to think it through as you head into the new year.
