CEO's First 100 Days - 5 Myths - HBR Blogs Post

http://blogs.hbr.org/cs/2012/01/five_myths_of_a_ceos_first_100.html


Myth 1. Find out short coming
Better alternative: harmonize with the the company

Myth 2. Do something and go for quick wins.
Better alternative: Find out what ticks in the company.

Myth 3. Establish new team by identifying the best functional specialists.
Better alternative: Focus teamability.

Myth 4. Define and communicate performance standards
Better alternative: First communicate how you want to be evaluated.

Myth 5. Show that you are the smartest man.
Better alternative: Recognize the functional specialization and expert knowledge of other. Only show ability to assess the key assumption behind the analysis.

Authors of the post
Roselinde Torres
Peter Tollman
Senior Partners, Boston Consulting Group.


CEO Talk Radio: Path to CEO

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Updated 9 October 2016,  31 January 2012

68 Responsibilities of a CEO - Link for a List

http://www.clevelenterprises.com/articles/68_ceo_responsibilities.htm




1. Understand the primary goals set for you by the the Board
     A newly recruited CEO has to look at the objectives and goals set by the board of the company.

2. Meet all first-reports, discuss the game plan and initiate implementation of action items on this list.
    CEO has to establish the relation with the first recruits. Inform them them the board agenda and learn from the various issues related to the implementation of the agenda. Some barriers to implementation may come in the discussion. CEO has to understand first the nature of the barriers to come out the plans to overcome them.

     Company capabilities, competences, resources and relationships have to be ascertained.

3. Request all first-reports prepare the Agenda for the Future.

4. Discuss the dozen biggest problems and opportunities from perspective of all first-reports.

5. If survival is the key issue, prepare a cost cutting plan immediately which is prudent and is in accordance with the Board's short and intermediate term goals.

6. Identify and implement top six action items that could measurably increase short term revenues.

7. In addition to this action list, formulate short-term game plan for company, get board approval and communicate plan to key personnel, suppliers, lenders, etc.

8. Prioritize top ten action items for the whole company and begin implementation.

9. Identify top goals for the company for the current month, quarter and year.

Financial Issues

10. Within the first week, get full understanding of the detailed financial statements, itemized payroll, payables and receivables list.
11. Review budgets of all departments or divisions for reasonableness of assumptions, quality of projections and relevancy in light of recent corporate changes and goals.
12. Evaluate obvious, and not so obvious, problems and strengths revealed by the financial statements.
13. Do realistic cash forecast for the next 90 and 180 day periods.
14. Evaluate asset utilization.  and make  re-deployment plans.

Liabilities and Problems

15. Find and out Deal with the six largest crises within the first three weeks.
16. Review banking and debt obligations for next 90, 180 and 365 day periods and ensure no technical or major defaults, if possible.
17. Determine which critical suppliers have suspended support due to lack of payment, or other problems and initiate discussions with them
18. Identify and take steps to immediately defuse all visible and foreseen problems.

Regulatory / Legal / Litigation

19. Ensure all payroll taxes are paid and properly reported.
20. Determine what, if any, problems exist with other tax authorities and state agencies.
21. Ensure the company is in compliance with all required regulatory and licensing agencies, etc. and if not, take action to resolve these issues.
22. Identity all outstanding legal issues and litigation risks along with probable, and possible, associated costs.
23. Ensure no securities law violations have occurred -- and if they have, take immediate steps to remedy them, or mitigate their impact.
24. Review all legal issues related to patents, trade secrets, trademarks and copyrights.

Product lines / Marketing / Sales / Distribution

25. Analyze product delivery schedules and takes steps to improve meeting commitment dates.
26. Evaluate product development timetables, related budgets  and quality of project management systems, procedures and controls.
27. Evaluate sales, marketing, distribution, forecasts and trend lines for improvement opportunities in all areas, so as to generate more cash in the short-term.
28. Identify both the best customers and the most unhappy customers, as well as the company's image in the marketplace.
29. Complete competitive analysis for each product line.
30. Evaluate pricing models for each product line and adjust accordingly.
31. Identify product line strengths and weaknesses and develop short-term action plan to solve the most glaring problems.
32. Identify potential products -- 6, 12 and 24 months into the future -- and their possible impact on revenue and expenses.
33. Establish / update / expand web presence.
34. Evaluate expenditures and effectiveness of marketing and advertising for media, trade shows, market research, focus groups and public relations and adjust accordingly.
35. Evaluate sales force, sales-related incentives, sales targets, sales personnel training, special offers, dealerships, telemarketing and sales support.
36. Evaluate and optimize short-term inventory.
37. Evaluate customer / technical support, warranties, guarantees and after-sales service.

Personnel Issues

38. Upon arrival, candidly communicate with all company personnel for introduction and conveyance of immediate game plan.
39. Set up suggestion boxes, and invite anonymous email, to gain insight into less obvious underlying problems.
40. Review major Human Resource department aspects of company for legal compliance, competitiveness of benefits package, diversity, clarity of policies and potential costs savings.
41. Evaluate strengths and weaknesses of all first reports.
42. Develop 30/60/90 day performance plans for all first reports.
43. Evaluate organizational structure and effectiveness -- and reorganize if appropriate, adjusting total payroll if necessary.
44. Identify best and worst five percent of employees in the company -- probably replacing worst five percent and ensuring the best five percent are motivated enough to stay.
45. Analyze employee turnover rates to identify fundamental problem areas.
46. Identify key personnel and unfilled job functions, define criteria and initiate search, within budget constraints.
47. Identify personality issues / company policies that may be creating negative impact on company morale and productivity.
48. Review / modify written delegation of authority for all first reports.
49. Review all employment contracts or agreements, oral or written, including any severance or termination compensation agreements with salaried, hourly, or collective bargaining employees.
50. Review all bonus, deferred compensation, stock option, profit sharing, retirement programs or plans covering salaried, hourly, or collective bargaining employees.

IPO / Merger / Acquisition / Disposition / Dissolution

51. Identify which mergers, acquisitions, dispositions and investments make the most sense for the company.
52. Identify the growth issues regarding acquisitions, spin offs, expansion, downsizing, establishing new, and/or closing existing branches and stores.
53. If decision is to sell the company, establish price and terms, subject to Board approval, prepare sales summary and develop game plan and methodology for sale.
54. Complete three year pro forma, based on realistic assumptions, to determine future valuation potential of company and likelihood of IPO or merger/acquisition potential.
55. If Board decision is to dissolve company, develop game plan for liquidation of assets and/or follow up on bankruptcy filing.

General / Administrative

56. Evaluate and control travel, entertainment and all discretionary expenditures and implement new written policies for these issues.
57. Review facilities and real estate issues, including a review of current lease requirements.
58. Review all equipment leases for cost cutting / improved technology opportunities.
59. Create / update business plan for current internal clarity and banking or capital formation needs.
60. "Manage by roaming around" -- gaining insights into attitudes and problem areas from within all levels of the organization.
61. Evaluate in-place systems and procedures and streamline where appropriate.
62. Evaluate technology implementation and optimize within budget constraints.
63. Visit all branch offices and evaluate their needs, performance, personnel and cost-effectiveness.

Stockholder Status / Investor Relations

64. Evaluate investor and stockholder relations and communication status and initiate appropriate action.
65. Generate updated lists of all current shareholders and percentage ownership of each.
66. Review stock options or purchase plans and agreements, as well as lists of outstanding warrants and options, including date of grant, exercise price, number of shares subject to option, and date of exercise.

The Next Steps

67. Report to the Board: the objective status, evaluation, recommended modifications to the short-term game plan and any cash needs.
68. start implementing updated and approved game plan.


Updated  13 August 2016,  31 March 2012

New CEO - Embarking on a Transformation Journey

BCG Guide to Transformation - Simplified

CEO can be an external recruit or an internal recruit. But people expect changes in the organization. At the same time, they have self respect and feel proud of what they have done till that day under the guidance of the outgoing CEO. How should the new CEO go about his job?


In a guide to transformation, BCG defines a transformation as a profound change in a company’s strategy, business model, organization, culture, people, or processes. A transformation is  a sustainable, quantum improvement in performance, altering the trajectory of its future.


Stakeholders expect changes to occur when a new CEO is hired.


An insider CEO may not be able to change things quickly, yet through demonstration of quick and decisive actions—even before taking the top job—new internal CEO can seize the opportunity and put their company on the right trajectory for success.

The guide breaks the new CEO action-transformation process into four steps: the 100 days before officially starting, the first weeks on the job, the first 100 days, and the first 18 months.

Three important steps in the action-transformation process

Finding the Resources for the Journey. Launch short-term, no-regret moves to establish momentum and to free up resources to fuel new growth engines.
Winning in the Medium Term. Modify business model and operating model to increase competitive advantage.
Building the Right  Senior Management Team, Organization, and Culture. Develop a transformed business model and operating model to set up the organization for sustainable high performance.


Incoming leaders should talk with as many critical stakeholders as possible, both inside and outside the organization, in order to educate themselves about the company:

Employees, to determine if there is a consensus regarding the changes that are needed; ideally, leaders should speak with 30 to 50 employees from across all units and at all levels

Customers, to get opinions of the company’s products and services  in addressing their needs

Industry and functional experts, to understand the company and the complexities or disruptions in the market

During these conversations, a new CEO should primarily listen, encourage open and honest discussion, and make sure that all possible dynamic factors and all possible solutions are being brought to the forefront. Through this dialogue process, the CEO must start to diagnose problems and create hypotheses regarding which aspects of the company require improvement. This step will determine immediate areas to focus on and indicate transformation opportunities in specific functions, markets, or divisions.


New CEOs need to start identifying rapid, no-regret moves—initiatives that are relatively easy to implement in the first 100 days and that can generate results in 3 to 12 months. These no-regret initiatives should close performance gaps in a few critical areas, reduce costs, improve top- and bottom-line performance, and free up resources in order to fuel longer-term initiatives.

During The First Weeks: Energize the Organization

New CEOs must make efforts to energize the organization and build momentum for the collective transformation ambition.

The CEO should acknowledge the company’s heritage and the hard work of employees, and at the same  discuss external factors (such as the customer base, competitors, and capital markets), internal metrics (for example, operational and organizational performance and employee engagement), and the necessary measures the company  needs to  take in response.The case for change can be made to internal stakeholders in various venues, such as workshops and town hall meetings through a questioning process as attempted in sales dialogues.

The First 100 Days: Prepare and Launch the Transformation

The new CEO kicks off the rapid, no-regret moves that will deliver impact within 3 to 12 months, creating and enabling initiative teams, setting up the overall governance.

Leaders must put the foundation for transformation in place during this time, balancing development of a long-term vision with day-to-day reality. As the transformation plan takes shape and the case for change becomes clear, the CEO must shift gears from planning the transformation to actually leading it.

The no-regret initiatives build momentum for the larger effort, win over internal skeptics who may doubt that change is actually happening, generate credibility for the new leadership team, and often free up resources that can be used to fund subsequent measures. As a result, these initial initiatives when successful further help energize the organization.

The four primary levers for releasing resources for supporting the new initiatives of the journey are revenue, organizational simplicity (delayering), capital efficiency, and cost reduction.

Leaders should not abandon the initial initiatves prematurely declaring victory and moving on to other priorities. It is critical to maintain focus and ensure that initiative teams are on track to achieve results. Project tracking has to  be in place and everybody must have full transparency into the progress of each initiative. Regular review sessions, facilitated by the program management office (PMO), should provide sufficient information for leaders to know whether—and how—they need to intervene to sustain the progress of new initiatives.

Winning in the medium term  requires initiative like driving growth, modifying business model, revamping commercial processes or operations.

The medium term initiatives are usually more difficult to conceptualize. They require breakthrough thinking, usually in areas that are less familiar for the current organization members. These initiatives are also harder to staff and implement, and they call for involvement across functions and business units. But this is essential for the CEO to establish the credibility of coming out with totally new models and processes.

Setting the New Strategy and Operating Model.  Aong with driving short-term and medium-term initiatives, the CEO has involve the senior management team to look at their overall strategy and operating model. A targeted workshop-based approach with the senior leadership team—and the appropriate data and analysis—can lead to a strong outcome and do so in a highly efficient manner and it does not distract the leadership team from executing the current operations and initiatives.  This approach ensures that there is buy-in from the top team and that the strategy change paths are identified.  At an appropriate time more involved strategy creating exercise can be initiated.

Building Sustainable Performance. Many organizations that deliver results during the first year have a tough time sustaining their hard-won performance improvements. The goal of every new CEO should be to achieve success during the first 18 months of the transformation program and then maintain it well beyond that point. It is imperative for a CEO to own this phase and closely involve the chief human-resources officer and other influential leaders across the company to communicate to the people inside.

Changes to the Organization

There are five important aspects to developing the right people and organization required to support a successful, sustainable transformation:

Ensure the commitment of the executive team and enhance their capabilities, including their ability to set the right priorities, mobilize and energize initiative teams, and hold themselves accountable for the results.

Deploy change-management tools and processes (such as an activist PMO, roadmaps, and rigor testing) to engage stakeholders and deliver results. (For more on rigor testing, see “The Hard Side of Change Management,” Harvard Business Review, October 2005.)

Install an HR team that participates as a transformation partner, anticipating talent and leadership needs, rather than as a mere service provider.

Build a talent pipeline that can help fill crucial roles, and develop capabilities in areas critical for the transformation.

Simplify the organization and culture to sustain high performance in conjunction with the new strategy.



https://www.bcgperspectives.com/content/articles/transformation-large-scale-change-change-management-new-ceo-guide-transformation/?chapter=6

2011 Ph.D Thesis: THE ROLE OF CHIEF EXECUTIVE OFFICER

THE ROLE OF CHIEF EXECUTIVE OFFICER

Margaret B. Glick
School of Education


Colorado State University
Fort Collins, Colorado
Spring 2011


Doctoral Committee:
Advisor: Thomas J. Chermack
Gene W. Gloeckner
Susan A. Lynham
Jennifer K. Bond


The purpose of the study in thesis was stated as to address the gap in literature on the role of CEO. Research on the role of CEO is  outdated, as the theory deduced by Mintzberg in the 1970s has not been  refined and updated in recent days. A major goal of the survey research carried out in this thesis was to use the insights provided by CEOs to improve general understanding of the major roles played by CEOs and how they generally allocate their time in various critical functions.


The CEO survey instrument was developed based on 31 roles identified from the literature. The survey was sent to CEOs selected from a purchased database and e-mail was used to contact CEOs. The study focused on three research questions: What is the role of CEO, how CEOs allocate their time to roles, and what new or further roles are indicated by CEOs apart from the 31 mentioned in literature so far.

Full thesis can be downloaded from
http://digitool.library.colostate.edu///exlibris/dtl/d3_1/apache_media/L2V4bGlicmlzL2R0bC9kM18xL2FwYWNoZV9tZWRpYS8xMjAzMzk=.pdf

What Only the CEO Can Do by A.G. Lafley

Harvard Business Review, MAY 2009

A.G. Lafley was CEO of P&G

In 2004 Drucker said, “The CEO is the link between the Inside that is ‘the organization,’ and the Outside  - society, economy, technology, markets, and customers."

The CEO alone can experience the outside at an enterprise level and therefore is responsible for understanding it, interpreting it, and presenting it to inside so that the company can respond in a way that enables it to sustain sales, profit, and shareholder return growth.

The CEO is also accountable for the performance and results of the company— its own goals and also the target,  measures and standards of diverse and often competing external stakeholders.

A company  will not succeed without a deep understanding of external stakeholders and their competing interests, and how those interests can be reconciled and satisfied with the capabilities and limitations of the organization.

Linking the outside to the inside is one line description of the role of the CEO. The work content can be described as four fundamental tasks. These four tasks were also drawn  from Drucker’s observations:

1. Observing, defining and interpreting the relevant and meaningful outside.
2. Answering, time and again, the two-part question, What business are we in and what business are we not in?
3. Balancing current profits with necessary investment in the future (especially investments which are treated as expenses in financial accounting).
4. Shaping the values and standards of the organization (culture maintenance and change).


Updated 12 Sep 2015
First posted 13 Sep 2012

Entrepreneurial CEO Versus Maintenance CEO

Entrepreneurial CEOs oversee development and introduction of new products, new processes, new plants and new markets. An entrepreneur is defined that way. An entrepreneur is born when he is able to combine the factors of production in a different way and create value.

Maintenance CEOs are good at producing and selling the existing products in the existing markets using existing processes in a growing or stagnant phases. But many times in stagnant phases, some entrepreneur CEO achieve extraordinary results, and there is a demand all around for more entrepreneurial CEOs and the maintenance CEOs come under pressure.


Entrepreneurial CEOs have talents that are different from operational CEOs: Marc Effron,  October 2011

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