Peacetime CEO/Wartime CEO
Can Peacetime CEOs become Wartime CEOs?
Running a company is a great privilege and a big responsibility. When times are good, the executive’s job is rife with the trappings of success and power. When times are tough, it’s not for the faint of heart.
The CEO has to adapt to the situation she finds herself in quickly, but realistically, not all can. Whether inertia, inflexible management style, or fear, most CEOs are either Wartime or Peacetime CEOs. Very rarely do you find ones that can adapt to both successfully.
Steve Jobs was a Wartime CEO. Tim Cooks is a Peacetime CEO. If you’re a startup CEO, you are a Wartime CEO.
Twelve years ago, Ben Horowitz published “The Hard Things About The Hard Things.” In the book, he dedicated a section to the behaviors of Wartime CEOs versus those of Peacetime CEOs. Below, you’ll find those excerpts in italic.
With so much uncertainty and rapid change in the world of tech, and business in general, many of us are finding ourselves becoming Wartime CEOs, having to adapt quickly to a fast-changing reality. Oftentimes, that sense of urgency to change behavior doesn’t kick in until it’s too late.
So, how do Wartime CEOs behave?
#1 They break the rules to win vs. follow the rules and fail
Peacetime CEO knows that proper protocol leads to winning. Wartime CEO violates protocol in order to win.
Peacetime CEO knows what to do with a big advantage. Wartime CEO is paranoid.
Peacetime CEO strives not to use profanity. Wartime CEO sometimes uses profanity purposefully.
Peacetime CEO focuses on the big picture and empowers her people to make detailed decisions. Wartime CEO cares about a speck of dust on a gnat’s ass if it interferes with the prime directive.
#2 They’re biased for action vs. being biased for over-planning
Peacetime CEO spends time defining the culture. Wartime CEO lets the war define the culture.
Peacetime CEO sets big, hairy audacious goals. Wartime CEO is too busy fighting the enemy to read management books written by consultants who have never managed a fruit stand.
Peacetime CEO has rules like “we’re going to exit all businesses where we’re not number 1 or 2.” Wartime CEO often has no businesses that are number 1 or 2 and therefore does not have the luxury of following that rule.
#3 They go all in vs. hedge their bets
Peacetime CEO always has a contingency plan. Wartime CEO knows that sometimes you gotta roll a hard six.
#4 They slay the competition vs. play well with others
Peacetime CEO thinks of the competition as other ships in a big ocean that may never engage. Wartime CEO thinks the competition is sneaking into her house and trying to kidnap her children.
Peacetime CEO aims to expand the market. Wartime CEO aims to win the market.
#5 They lead with tough love vs. leading with ruinous empathy
Peacetime CEO trains her employees to ensure satisfaction and career development. Wartime CEO trains her employees so they don’t get their ass shot off in the battle.
Peacetime CEO strives for broad based buy-in. Wartime CEO neither indulges consensus-building nor tolerates disagreements.
Peacetime CEO strives to tolerate deviations from the plan when coupled with effort and creativity. Wartime CEO is completely intolerant.
Peacetime CEO does not raise her voice. Wartime CEO rarely speaks in a normal tone.
Peacetime CEO works to minimize conflict. Wartime CEO heightens the contradictions.
Peacetime CEO builds scalable, high volume recruiting machines. Wartime CEO does that, but also builds HR organizations that can execute layoffs.
According to Mr. Horotwitz, Wartime CEOs are constantly optimizing for rapid decision-making and are biased for action. I think those are essential rules to follow for Peacetime CEOs as well.
Some might think that Wartime CEOs, according to the description above, are just a bunch of bullies. I disagree. I think there’s a very clear line between a bully and a decisive leader stepping in to prevent the total ruin of her company. Sometimes that means making unpopular decisions or letting a lot of people go. Sometimes that means making time-critical decisions fast, which may mean that the buy-in process is bypassed.
I think the best CEOs are the ones forged in the crucible of adversity and conflict, who learned how to survive the hard way. It’s easier to learn to smooth out the rough edges to lead effectively in peacetime. The other way around does not work. Not that I’ve seen, anyway.
What do you agree/disagree with? Do you modulate your behavior according to the level of adversity your business is experiencing at a given moment? Is it hard for you to modulate? Would love to hear from you.