How to be a CEO
Posted 20th June 2014 at 12:24 PM by imarkedy
During a recent email exchange with a colleague, I was reminded of the true meaning of a CEO, otherwise known as Chief Executive Officer. A CEO, except for the Board of Directors, is the person within the organization wielding ultimate authority. We recently received an email from the CEO of enthuse.me, Dan Jacobs, announcing his departure from the company. Dan’s reason for leaving was stated as ‘a disagreement with the Board of Directors on how to best raise capital for enthuse.me going forward’.
Before digging into Dan’s email further, we’d like to warn any for-profit business considering the establishment of a Board of Directors to do so cautiously or, in a perfect world, NOT AT ALL! Non-profit organizations are mandated, by law, to have Boards but for-profit corporations (or Sole Proprietorships), largely, don’t have the same mandate. Why do for-profit companies even have Boards as a part of their organization?
Many reasons can be given but five stand out;
1. Provides an air of legitimacy
2. Collaboration
3. Bring multi-faceted skill sets
4. Company oversight (accountability)
5. Gives (or not) buy-in to organizational direction
More could be added but the point is made. If you are a company founder, managing board relationships is much easier than if that same board had hired you after the company’s founding. Do you even need a Board of Directors? That depends on what you are trying to accomplish and as with anything in business, there is no ‘one size fits all’ answer.
A great beginning point to make such a determination is answering the question of ‘scale’. The larger you plan on scaling the business, the more likely Directors will be needed.
Nevertheless; I responded to Dan’s resignation announcement by encouraging him to keep walking his own path. Further, I cautioned to not count this loss of position as a defeat! It is a fact that those who’ve committed to remaining true to who they are and values held dear will often be rejected. Put more simply – those who are intentional about their individuality should be prepared to pay a price and often, it will mean surrendering everything to start over.
CEOs (great ones anyway), leave companies for largely two reasons;
1. Not providing a leadership style which fosters company growth
2. Refusing to be controlled (play corporate politics) with Board(s) of Directors and/or other senior organizational leadership
Although Dan didn’t give much detail, other than what was provided above for his termination (or resignation), I am sure it was the latter and not the former reason. Whether a one-person operation or multi-staffed company, it is good to listen to what others think. However, great leaders rarely require the ‘buy in’ of others to get things done. This isn’t to suggest buy in, from time to time, isn’t necessary but if this is the primary strategy for moving a company forward or keeping the peace, your leadership is, at best, mediocre and your company, stagnant.
Leaders, by their very nature, are risk takers and one of the hugest risks is standing up for what you believe is right. The welfare of the organization and yes, even that of your board, rests in your hands. Knowing what is best for those you have authority over, is the hallmark of great leadership. Unfortunately, right and wrong, these days, is a matter of opinion with few moral barometers (other than money) to refute or validate assumptions. Many set out on the journey towards starting their own businesses and are lured in by ‘delusions of grandeur’, one of which is the thought of becoming a Chief Executive Officer. What most fail to realize is ‘with great power comes great responsibility’. More important than any other responsibility, is that for your own your actions and moreover, looking out for #1; YOU!
Oh boy – sounds like I am teaching new CEOs to be selfish but nothing is further from true. Dan Jacobs, by resigning, understood that compromise on his vision and values, even with those having the authority to terminate his employment as CEO of Enthuse.me, just wasn’t an option. Some have found this article and are struggling with whether to take the entrepreneurship plunge or not. Your search can be a result of many reasons, one of which is being fed up with corporate America.
I, too, during the many years it took to establish a financially healthy business, experienced the same thing. Your survival, thus far, at a job you hate means you’ve compromised some of your personal values to ‘fit in’. We all know the penalty for being labeled a ‘non-team’ player right? Becoming a business owner brings with it a new set of problems but the good news is they are your problems to deal with as you see fit. Never be deceived into believing that because you are a CEO, no issues will arise and each day will be a ‘bed of roses’.
Never again, however, will you be forced to be an actor on someone else’s stage 40 or more hours per week. For those believing (social cause not-for-profit employees as well) you are secure in a job you love – at some point, you’ll be faced with the harsh reality that loyalty you give to the organization will never be repaid. You, my friend, are expendable and it is foolish to believe otherwise. So start building your company now! The hammer will fall and the only question is – will you be prepared when it does?
Brian D. Dale
Wordpress Membership Websites
Before digging into Dan’s email further, we’d like to warn any for-profit business considering the establishment of a Board of Directors to do so cautiously or, in a perfect world, NOT AT ALL! Non-profit organizations are mandated, by law, to have Boards but for-profit corporations (or Sole Proprietorships), largely, don’t have the same mandate. Why do for-profit companies even have Boards as a part of their organization?
Many reasons can be given but five stand out;
1. Provides an air of legitimacy
2. Collaboration
3. Bring multi-faceted skill sets
4. Company oversight (accountability)
5. Gives (or not) buy-in to organizational direction
More could be added but the point is made. If you are a company founder, managing board relationships is much easier than if that same board had hired you after the company’s founding. Do you even need a Board of Directors? That depends on what you are trying to accomplish and as with anything in business, there is no ‘one size fits all’ answer.
A great beginning point to make such a determination is answering the question of ‘scale’. The larger you plan on scaling the business, the more likely Directors will be needed.
Nevertheless; I responded to Dan’s resignation announcement by encouraging him to keep walking his own path. Further, I cautioned to not count this loss of position as a defeat! It is a fact that those who’ve committed to remaining true to who they are and values held dear will often be rejected. Put more simply – those who are intentional about their individuality should be prepared to pay a price and often, it will mean surrendering everything to start over.
CEOs (great ones anyway), leave companies for largely two reasons;
1. Not providing a leadership style which fosters company growth
2. Refusing to be controlled (play corporate politics) with Board(s) of Directors and/or other senior organizational leadership
Although Dan didn’t give much detail, other than what was provided above for his termination (or resignation), I am sure it was the latter and not the former reason. Whether a one-person operation or multi-staffed company, it is good to listen to what others think. However, great leaders rarely require the ‘buy in’ of others to get things done. This isn’t to suggest buy in, from time to time, isn’t necessary but if this is the primary strategy for moving a company forward or keeping the peace, your leadership is, at best, mediocre and your company, stagnant.
Leaders, by their very nature, are risk takers and one of the hugest risks is standing up for what you believe is right. The welfare of the organization and yes, even that of your board, rests in your hands. Knowing what is best for those you have authority over, is the hallmark of great leadership. Unfortunately, right and wrong, these days, is a matter of opinion with few moral barometers (other than money) to refute or validate assumptions. Many set out on the journey towards starting their own businesses and are lured in by ‘delusions of grandeur’, one of which is the thought of becoming a Chief Executive Officer. What most fail to realize is ‘with great power comes great responsibility’. More important than any other responsibility, is that for your own your actions and moreover, looking out for #1; YOU!
Oh boy – sounds like I am teaching new CEOs to be selfish but nothing is further from true. Dan Jacobs, by resigning, understood that compromise on his vision and values, even with those having the authority to terminate his employment as CEO of Enthuse.me, just wasn’t an option. Some have found this article and are struggling with whether to take the entrepreneurship plunge or not. Your search can be a result of many reasons, one of which is being fed up with corporate America.
I, too, during the many years it took to establish a financially healthy business, experienced the same thing. Your survival, thus far, at a job you hate means you’ve compromised some of your personal values to ‘fit in’. We all know the penalty for being labeled a ‘non-team’ player right? Becoming a business owner brings with it a new set of problems but the good news is they are your problems to deal with as you see fit. Never be deceived into believing that because you are a CEO, no issues will arise and each day will be a ‘bed of roses’.
Never again, however, will you be forced to be an actor on someone else’s stage 40 or more hours per week. For those believing (social cause not-for-profit employees as well) you are secure in a job you love – at some point, you’ll be faced with the harsh reality that loyalty you give to the organization will never be repaid. You, my friend, are expendable and it is foolish to believe otherwise. So start building your company now! The hammer will fall and the only question is – will you be prepared when it does?
Brian D. Dale
Wordpress Membership Websites
