Don't Become This CEO. You're Better Than That.
Mind your decision-making culture, or risk losing your team, your company, and your reputation.
CEOs need tenacity, drive, passion, charm, and acumen to be successful. But perhaps the most important traits of a CEO are self-reflection and self-awareness. It’s what separates the legends from the forgotten, the pros from the amateurs, and the jerks from the role models.
In his book, A CEO Only Does Three Things, Trey Taylor asserts that a CEO’s job is to take care of people, culture, and numbers, in that order. Everything else should be delegated. But to do the job well, you need to master self-awareness.
“Self-awareness is the foundation of self-management and decision making.” — Trey Taylor
Assuming the CEO does a good job hiring and retaining the right talent, her next challenge is cultivating a culture of accountability, empowerment, and innovation.
But culture isn’t about free lunches and value statements. Culture is about behavior, and it all starts with the behavior of the CEO. You can’t recognize and improve behavior if you’re not self-reflective and self-aware.
You won’t have a culture of accountability if you’re unaccountable yourself. You won’t have a culture of empowerment if you micromanage your team and strip them of their autonomy. You won’t have a culture of innovation when you stifle it with interference and indecision.
You won’t have a team if you’re unwilling to recognize and change your behavior.
The hallmark of a culture of accountability, empowerment, and innovation is autonomy. The great talents you’ve hired require autonomy to give you their best work.
"I'd rather interview 50 people and not hire anyone than hire the wrong person." — Jeff Bezos
To achieve autonomy, you need to be clear on how decisions are made, who can make them, and under what conditions. It all comes down to the standard you set for managing decision-making for yourself and your team. Accountability, empowerment, innovation, and in turn, autonomy, all stem from that.
Let’s take a closer look.
Strategic Decisions vs. Operational Decisions
Great CEOs are crystal clear on what decisions stay with them and what decisions don’t. They know the company is counting on them to make strategic, consequential, high-risk decisions and be accountable for them.
Great CEOs have done the hard work ensuring they have the right people in the boat, which frees them to focus on the most critical, high-risk aspects of the business. They also know they can delegate all other aspects of the business to the senior executives and their teams.
"The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it.” — Theodore Roosevelt.
There are two types of decisions companies make every day: strategic decisions and operational decisions.
Strategic Decisions
Strategic decisions are long-term choices that have a significant impact on the direction and success of an organization. These decisions typically involve high levels of risk, complexity, and resource allocation, and they often determine the organization's overall trajectory.
The Hallmarks of Strategic Decisions
Long-term Impact: These decisions have lasting consequences and shape the future of the organization.
High Risk/Reward: A high potential for either substantial gain or loss.
Resource Intensive: They typically involve significant financial investment, manpower, or time.
Complexity: Often multifaceted, requiring extensive research, due diligence, and consultation.
Irreversibility: Difficult, costly, or impossible to reverse once executed.
Examples of Strategic Decisions
M&As: E.g., Microsoft's acquisition of LinkedIn.
Changing Business Models: E.g., Adobe's transition from one-time purchases to a subscription model.
Entering New Markets: E.g., Tesla's entry into the Chinese market.
Major Product Launches or Pivots: E.g., Apple's introduction of the iPhone.
Organizational Restructuring: E.g., IBM's shift from hardware to cloud computing services.
Global Expansion: E.g., Netflix launching its services in over 190 countries.
Capital Investment: E.g., Tesla's decision to build a Gigafactory for battery production.
Strategic Partnerships: E.g., Google partnering with NASA for quantum computing research.
Technology Adoption: E.g., FedEx implementing autonomous delivery vehicles and drones.
Accountability
The final decision usually rests with top executives—the CEO, the Board of Directors, or the C-suite. In public companies, shareholders may get involved in exceptionally high-stakes decisions. Accountability is often at the highest levels of the organization.
But no matter what, only one person should be declared the decider and the accountable party for that decision. Have two or more deciders, and you’re done for.
Operational Decision
Operational decisions, on the other hand, are choices related to the day-to-day functioning of an organization. They tend to be shorter-term, less risky, and more reversible than strategic decisions. These decisions ensure that the organization can implement its strategy effectively.
The Hallmarks of Operational Decisions
Short-term Impact: These decisions have immediate consequences and are often routine.
Lower Risk/Reward: Typically lower stakes, with manageable positive or negative outcomes.
Less Resource-Intensive: Usually involve fewer resources compared to strategic decisions.
Simpler Context: Less complexity, often guided by established procedures or guidelines.
Reversibility: Easier to reverse or modify if things go awry.
Examples of Operational Decisions
Feature Prioritization: E.g., A mobile app team deciding to add a dark mode feature in the next release.
UI/UX Choices: E.g., Airbnb deciding to simplify its booking interface to reduce user friction.
Choice of Programming Language: E.g., A new startup deciding to build its backend services in Python.
Inventory Management: E.g., Walmart's use of data analytics to optimize stock levels in real-time.
Budget Allocations for Small Projects: E.g., A digital marketing agency allocating a $5,000 budget for a client's Facebook ad campaign.
Customer Service Protocols: E.g., Zappos offering 24/7 customer support via multiple channels.
Quality Control Measures: E.g., Toyota implementing a specific quality check at various stages of car assembly.
Resource Allocation for Existing Projects: E.g., A software development firm assigning additional programmers to meet a project deadline.
Employee Training Programs: E.g., A healthcare provider mandating annual re-certification in CPR for its staff.
Accountability
These decisions are often made by mid-level managers, department heads, or even frontline employees. While these individuals are directly accountable for the decision, they operate within the guidelines and objectives set by senior management.
Don’t Become This CEO
Great CEOs define what “strategic” and “operational” decisions mean for their company—definitions, examples, protocols, how to pick a decider/accountable person, how to gather feedback, how to define worst-case scenarios, etc.
They’re clear on what types of decisions they, and only they, can make.
They’re clear on what they expect from the team and what the team should expect from them.
Unfortunately, great CEOs are few and far between. Most lack the self-awareness that’s needed to usher them into their greatness era.
Let’s take a look at what reality looks like for employees in most companies around the world.
The following four stories aren’t fictitious. They happened, and, unfortunately, continue to happen at most companies out there. Let’s see if you recognize yourself in one (or more) of these CEOs.
If you do, remember, you’re better than that. You can break out of this pattern. We’ll talk about how later.
Story #1 — The “in the weeds” CEO
Meet Jill, the Head of Product for a tech company called SoftStream . Jill is sitting in her weekly team meeting, awaiting the discussion about the rollout of the company’s much-anticipated cloud storage service. For months, her team has been fine-tuning the user experience, balancing performance, and ensuring security features are robust.
The team is wrapping up the presentation, summarizing the key milestones and timelines. Marc, SoftStream’s CEO, who asked to be invited to the meeting, says with a smile. “Great job, everyone. Now, I have to ask: How are we doing on the color scheme for the user interface?”
Emily, the UI/UX designer, looks a bit puzzled but responds, “We’ve settled on a sleek and modern design that aligns with our branding, predominantly blues and whites with accents of gray. The team feels it’s both aesthetically pleasing and functional.”
Marc tilts his head, “Hmm, I was thinking, what about adding some green accents? Green typically symbolizes growth and stability. I think it would be a nice touch.”
At this point, Jill feels uneasy. The color scheme has been a topic of numerous discussions among her team members. They’ve gone through extensive user testing and finally reached a consensus that’s backed by data. Yet, here is Marc, injecting a personal preference into a detail that the team had worked so hard on.
Chris, the lead developer, adds cautiously, “We did consider various colors, and A/B tested them. The current choice seems to resonate the best with our target audience. Adding green at this point might require additional testing and potentially delay the launch.”
Marc raises an eyebrow, “Well, it’s just a suggestion. But I do think it’s worth exploring. We can discuss this offline.”
Jill feels her team’s autonomy slipping through her fingers. The color scheme is a trivial issue compared to the technical challenges they’ve tackled, yet Marc’s involvement in this minor decision suggests a lack of trust in her team’s expertise.
In her mind, Jill echoes a sentiment that has been growing stronger with each meeting: “Why do we spend so much time discussing and researching if Marc is just going to overwrite our decisions based on a whim? What’s the point of having a specialized team if he won’t let us own our work?”
Resigned, Jill looks at Marc, “We’ll look into it and see how the green accents fit into our design.”
As she nods, she can’t help but think that this isn’t just about colors; it’s about the diminishing sense of ownership and empowerment her team feels — a pattern that seems to be becoming a part of SoftStream’s company culture.
A Closer Look
Does this story resonate? How many times have we all been in meetings where we played Marc, Jill, Chris, or Emily? This dynamic, unfortunately, is more common than we’d like to see.
Marc, the CEO, is getting involved in operational decisions that should have been left to his team. After all, that’s why he hired them in the first place, right?
Usually, CEOs like Marc behave like this because a) they care so deeply about this particular area and are unwilling to let go, or b) they didn’t hire the right people to begin with and now feel they need to overcompensate for their team’s mediocrity, or both!
Either way, CEOs like Marc chip away at their team’s confidence and trust, one meeting at a time. And over time, they’re left holding the bag when the good people leave.
A Word for CEOs Like Marc
Passion about specific areas of the company—be it product, design, or sales—is completely normal, especially if you’re a founder. That’s what made you great at the beginning of your journey. Back then, you were the one who made all the decisions. Exhilarating, I’m sure.
But as you grow your company and start hiring great people, you will have to let go of controlling outcomes in the areas you care about. If you can’t, the great people you hire will quit, or, worse, check out.
If you haven’t hired the right people and feel the need to help them make sound decisions, then you need to start there. Nothing good will come from letting mediocre teams stay in your company.
Also, the time you’re spending in the weeds, delaying operational decisions and eroding trust with your team, is time away from more urgent matters and strategic decisions that need your attention. So in effect, you’re neglecting your responsibilities to the business by getting into everyone else’s business.
A Word for Teams That Work for Marc
It’s important to sit down with Marc and set clear expectations and boundaries. Be an author and take charge. There’s no guarantee it’ll work, but you gotta do it. It’s what you can control.
Learn the art of hard conversations. Assume he’s not aware of how he’s making you feel (he’s probably not.)
If this behavior becomes the norm and if you can’t make peace with it, you might want to consider moving to a different team or leaving the company altogether. If you don’t, you risk devolving into one of these characters over time.
Story #2 — The Underminer in Chief
Meet Joe, the Head of HR at a burgeoning tech startup called ByteWise. Joe is settling into his seat for the monthly leadership team meeting. The agenda is packed, but what concerns him most is the discussion around employee benefits. His team has been conducting surveys, gathering data, and holding focus groups to figure out what kind of benefits package would most attract and retain their talent.
After cycling through slides about quarterly earnings and marketing strategies, Linda, ByteWise’s CEO, finally shifts focus to employee benefits. “I heard your team has been working hard on this. What did you find?”
Joe is ready. He has his presentation open, full of data that strongly supports their proposed package, which includes flextime, mental health services, and a generous parental leave policy. “We’ve done extensive research and found that — ”
Before he can even finish his sentence, Robert, the COO, interrupts, “I heard some other startups are offering pet insurance. Shouldn’t we consider that?”
Joe feels a knot tightening in his stomach. “Well, we did look into that, but our research showed it was a lower priority for our team compared to mental health services.”
Linda looks intrigued by Robert’s suggestion. “Pet insurance sounds innovative and quirky. It aligns well with our brand image. Let’s include it.”
Joe feels his heart sink. His team had spent weeks evaluating and prioritizing the benefit options based on what would add the most value for employees, only to have it sidelined by an executive whim.
“Linda, our package was designed based on what we believe would have the greatest impact on employee well-being and retention. It’s tailored to our particular workforce, not just industry trends.”
Linda waves him off. “Let’s just add the pet insurance. It’ll make for a good press release, and our competitors will see we’re thinking outside the box. Oh, and make sure to adjust the budget accordingly, we can skim off the educational benefits or something.”
Feeling frustrated and disempowered, Joe thinks to herself, “Why did we bother putting in so much effort if our findings are just going to be overruled by upper management based on fads or branding? It demoralizes the team and undermines the work we do.”
Reluctantly, Joe nods, “Alright, we’ll make the adjustments.”
As he closes his laptop, Joe can’t shake the feeling that this decision isn’t just a slight to his team — it’s a signal to the entire organization that thoughtful, data-driven work can be upended by executive whims, especially when those whims pertain to issues that aren’t mission-critical. And that kind of culture, he fears, won’t bode well for ByteWise in the long run.
A Closer Look
Linda completely derailed an operational decision made by her Head of HR, and she probably didn’t even realize it. And that’s the problem.
CEOs like Linda aren't self-aware enough to realize that they cast a big shadow, and their words and actions carry a lot more weight than any other person in the company, including the C-suite.
Like Marc, Linda is chipping away at her team’s autonomy and confidence and slowing down the business by delaying operational decisions that didn’t require her input.
A Word for CEOs Like Linda
Realize that you cast a shadow and that your words matter. If you’ve delegated a decision to someone on your team, let them drive it without interference unless an egregious oversight or a threat to the business was identified as a potential consequence of that decision.
Your team will not do things exactly the way you would do them, but that’s the magic of having a high-performing team. They will do them better.
A Word for Teams That Work for Linda
Same thing I mentioned to those working for Marc. Sit down with Linda and set expectations and boundaries. Learn the art of hard conversations and do it.
Story #3 — The Unaccountable CEO
Meet Allison, the Chief Strategy Officer of a renewable energy company named GreenWave. Allison is sitting in a board meeting, and the room is abuzz with discussion about a high-stakes dilemma: whether to invest in offshore wind farms or double down on solar power installations — the company’s core business. Each option carries a different set of risks, rewards, and commitments of resources.
Allison and her team have been rigorously researching both options for months, running models and weighing variables like environmental impact, long-term scalability, and government subsidies. They’re prepared to make a final recommendation.
Before she can present her findings, David, GreenWave’s CEO, speaks up. “Before we hear from Allison’s team, I just want to say that my gut feeling is really pushing me toward offshore wind. The technology has been maturing, and it could make us industry leaders.”
Allison senses the tone of the room shifting, but she proceeds with her presentation. “Based on our comprehensive analysis, we recommend prioritizing the expansion of solar power installations for the next five years. It’s our core business, the ROI is higher, and there’s significant government support.”
David interjects again, “I’m still not convinced. What about the wind speed data for the last quarter? It’s been promising.”
Frustration builds up inside Allison. “We considered that data, but even with increased wind speeds, our models indicate that solar remains the better long-term investment.”
David looks dissatisfied. “I just can’t shake my feeling about this. Look at CleanVolt, a company half our size, raking in the dough by doubling down on wind power! Let’s revisit one more time before finalizing anything. I also think the board should vote on this.”
Allison feels confounded. Normally, a strategic decision of this magnitude would be the CEO’s responsibility, especially with so much at stake. However, David had initially delegated the task to her and her team. Yet now, he seems unwilling to let go of control, undermining months of her team’s work and creating confusion about who really owns the decision.
As she nods her agreement to revisit the analysis, Allison can’t help but wonder: “If David was going to keep such a tight grip on the decision, why delegate it in the first place? Now we have a situation where the board is divided, my team’s work is under a cloud of doubt, and our strategic direction is unclear.”
The room moves on to other topics, but Allison is still disturbed. By not allowing the team to own the decision, even after delegating it to them, David has introduced uncertainty and hesitation into a process that should be clear and decisive. It’s a failure of leadership that has implications not just for this particular decision, but for the decision-making culture of the company as a whole.
A Closer Look
Now we’re really getting into dangerous territory. David has tasked his CSO with a strategic decision yet he won’t let her make it, because, in the end, he feels it’s his decision to make but he doesn’t want to make it.
Wild, right?
I’ve seen this movie so many times it’s not even funny. This is a classic unaccountable CEO behavior right there. If this is a consistent pattern in a company you work for, RUN. It’ll only get worse. Much worse.
A Word for CEOs Like David
You shouldn’t have delegated this decision to your CSO. She should help you with input to inform your decision, which she did, but it’s your decision after all. You have to make it yourself.
You may not realize it now, but you do have a crisis on your hands. You do not trust your first team—the C-suite. I highly recommend addressing this issue asap, otherwise, you’re operating on a shaky foundation that will come crumbling down in a matter of time.
Seek feedback, coaching, and 360 reviews. Talk to your C-levels to become more self-aware of your actions and their consequences.
A Word for Teams That Work for David
Have that hard conversation and try to nip that behavior in the bud swiftly. If you’re the CSO or any other C-level who’s not fully empowered to make a decision under this CEO, you know you’re set up to fail.
Speak up, that’s your job.
Story #4 — The Reckless Dreamer
Meet Jonathan, the Chief Operating Officer of a fast-growing e-commerce company named WebCart. Jon is in a high-stakes executive meeting focusing on a bold new initiative: expanding the company’s presence into several new international markets simultaneously.
Jon’s team, responsible for executing the operations behind such a strategic move, has been working overtime to assess logistics, legalities, and local market needs.
Steve, WebCart’s charismatic CEO, starts the meeting with an impassioned speech. “Remember, folks, projects fail when they’re thought too small. I believe this expansion can redefine who we are and elevate us to a global brand. It’s not just about increasing our market share; it’s about making a statement.”
Jon feels uneasy. His team’s preliminary research suggests that a more staggered, cautious approach would be more sensible, allowing them to learn from each market before moving on to the next. However, each time these findings have been presented to Steve, he has dismissed them as lacking ambition.
Matthew, the CFO, cautiously intervenes, “While the vision is exciting, we should consider our financial bandwidth. Spreading ourselves too thin could expose us to unacceptable levels of risk.”
Steve leans in and smiles, “I hear your concerns, Matt, but sometimes you have to risk big to win big. Let’s not let caution turn into paralysis.”
Angela, the Chief Marketing Officer, adds, “We also have to think about our brand reputation. Entering too many markets and failing would have a detrimental effect that’s hard to reverse.”
Steve cuts her off, “That’s why we won’t fail. I believe in this team, and you should believe in this vision. It’s going to be a lot of work, but the payoff is unparalleled.”
Jon can see what’s happening; Steve is not just advocating for his vision, he’s indirectly bullying his executive team into compliance. They’re being presented with a false dichotomy: either go along with Steve’s grand plan or be labeled as lacking vision and courage. The subtlety of his approach leaves little room for open dissent.
Internally, Jon is torn. “I’ve always been a team player, but this initiative is looking like a runaway train,” he thinks. “Steve is using his position to push for a strategy that I believe is operationally unsound. We’re getting strong-armed into saying yes, and it’s making me question the integrity of our decision-making process.”
Finally, Jon takes a deep breath and speaks up, “I respect your optimism, Steve, but as the team responsible for implementation, we have concerns about operational feasibility.”
Steve turns his gaze towards him, “Jon, I appreciate your diligence. But let’s not be the ones to hold ourselves back. We’ll find a way to make it work, we always do.”
It’s clear to Jon that pushing back further could put him at odds with Steve in a way that might be damaging. Reluctantly, he nods, “Alright, we’ll do our best to make it happen.”
As the meeting adjourns, Jon feels a growing sense of unease. By leveraging his charisma and position to overpower his experts, Steve has not only put the initiative at risk but also created an environment where genuine concerns are smothered by the overbearing force of his “visionary” leadership. This kind of culture, he fears, could be toxic for the company in the long run.
A Closer Look
Well, this is a train wreck. It’s obvious the company cannot handle the level of operations Steve is pushing for. Yet, he’s bullying his team into seeing, believing, and thinking the way he is. Bad news.
A Word for CEOs Like Steve
There’s a ton of cautionary tales around you. Listen and learn. You do not want to become a parable.
There’s a fine line between ambition and recklessness, courage and foolishness, inventiveness and delusion.
Livin’ on a prayer isn’t a winning strategy. Seek proof points and always ask yourself this question: “What’s the worst thing that could happen?” If the answer scares you, then take a beat and seek more feedback.
A Word for Teams That Work for Steve
It’s very hard to reason with leaders blinded by ambition, hubris, and ego. Outside of having the hard conversations and always speaking your mind, there’s little you can do to influence this type of CEO.
There’s always the option to walk, but make sure it’s the last resort. You don’t want to quit too soon if you can help it.
You Can Do Better
How do you avoid becoming a Marc, Linda, David, or Steve? Become self-reflective and self-aware.
To do that, there are three things that I’ve seen great CEOs do consistently:
#1 Read More
“Not all readers are leaders, but all leaders are readers.” — Harry S. Truman
Reading is a prerequisite for effective leadership, giving leaders a broader base of knowledge and the tools for better decision-making. It’s also the first step toward self-reflection and self-awareness.
There are plenty of books, eBooks, audiobooks, podcasts, MasterClasses, etc, that offer incredible content for new and seasoned entrepreneurs. Seek them out and start learning something new today. It will help you gain wisdom and become a better thinker, which ultimately lead to you becoming a great leader.
Critical thinking is a muscle we must always exercise. The knowledge we acquire is the protein required to grow these muscles and keep them healthy.
“The more that you read, the more things you will know. The more that you learn, the more places you'll go.” — Dr. Seuss
#2 Write Often
Writing demands a level of clarity and coherence that can improve your ability to articulate complex ideas and strategies. Through writing, you will get the clarity required for effective communication—something that was sorely lacking in the CEO profiles we looked at.
"Writing is thinking. To write well is to think clearly. That's why it's so hard." — David McCullough
#3 Get Frequent Feedback
Get a coach. Solicit feedback from your C-level and the senior executives on your team. Read more about how to receive feedback. Sometimes feedback can be difficult to hear, but it is essential for identifying issues that need to be addressed.
“Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body. It calls attention to an unhealthy state of things.” — Winston S. Churchill
Final Thoughts
Being a CEO is hard. Being a great CEO is improbable, but not impossible. Put in the work to unlock your greatness.
If you don’t have the time, that means you don’t have the right leverage, which means you haven’t done the first thing all great CEOs do. Do that first, and you’ll get the time to focus on becoming the unstoppable leader you are.
I hope this was worth your time. Drop me a note or leave a comment below. I’d love to hear from you.