Vision mindset: Reframe the game
Encapsulate the vision on a single page. Many leaders we spoke with have “one-pagers” that summarize their company’s mission in simple, succinct language. The late Ivan Menezes, former CEO of Diageo, used to carry “the Diageo performance ambition,” a one-pager that laid out the company’s six strategic pillars. “Whether you’re on a bottling line in Kenya or doing sales in Vietnam, you can find yourself on the page and know where you could make a difference,” he said.
Keep a short list of priorities. Many CEOs emphasized the need to keep their priorities streamlined. One CEO distilled his agenda down to five priorities to ensure he focused on what matters. This seemingly simple practice helps leaders prioritize effectively and keep the message to the organization clear.
Repeatedly reinforce organizational priorities. Even in seemingly routine and operational meetings, it is often important to start with core values. For example, one CEO begins every operations meeting with a review of the company’s core values. Another printed the company’s vision and priorities and posted them on the office walls.
Strategy mindset: Make big moves early and often
Seek insights in unexpected places. CEOs stay abreast of trends in numerous ways, from speaking with clients and suppliers to visiting innovative companies within or outside their sectors. Some take more unorthodox approaches, such as seeking input from younger colleagues to learn about emerging pockets of demand or delving into undervalued customer segments. Read the story
Keep an eye on the downside. To understand their organizations’ risk exposure and develop contingency plans, leaders need to understand worst-case scenarios. One CEO regularly asks, “Which mistake can I afford to make, and which can’t I?” Read the story
Spotlight Jørgen Vig Knudstorp, former CEO of the LEGO Group, was intrigued by a subset of customers that most of the management team paid little attention to: adult enthusiasts. “They were viewed as a gray market,” he said. These older LEGO fans held annual conferences, and Knudstorp joined one. “I camped there for six days and had endless conversations with 500 to 600 people,” he said. By doing so, Knudstorp gained the community’s trust and an understanding of the niche market’s potential. After the conference, he was inundated with emails offering suggestions. He realized that “if I could deliver something that satisfied [the adults], I could deliver something that satisfied the average user as well.” LEGO’s adult community now totals more than one million people worldwide and accounts for 30 percent of LEGO’s global business.
Jørgen Vig Knudstorp
Former CEO of The LEGO Group
Executive chair of The LEGO Group
Spotlight Piyush Gupta, CEO of DBS Bank, stress-tests ideas during meetings by unleashing the “wreckoon,” a concept based on Netflix’s “chaos monkey” that introduces random programming errors to test the resilience of the company’s software. At DBS, a picture of a raccoon shows up periodically in discussion documents, serving as a prompt to reflect on questions such as: What are we not thinking about but should be? What could be wrong with the path we’re going down? What would have to be true for this to be a bad decision? “You can tell people to dissent, but when you create a small mnemonic, people remember,” said Gupta. “You start to see it happen more in practice, and decision-making gets better as a result.”
Piyush Gupta
CEO of DBS Bank
Select a dimension to learn more
McKinsey & Company
How to set the direction
How to set the direction Vision mindset: Reframe the game
Encapsulate the vision on a single page. Many leaders we spoke with have “one-pagers” that summarize their company’s mission in simple, succinct language. The late Ivan Menezes, former CEO of Diageo, used to carry “The Diageo performance ambition,” a one-pager that laid out the company’s six strategic pillars. “Whether you’re on a bottling line in Kenya or doing sales in Vietnam, you can find yourself on the page and know where you could make a difference,” he said.
Keep a short list of priorities. Many CEOs emphasized the need to keep their priorities streamlined. One CEO distilled his agenda down to five priorities to ensure he focused on what matters. This seemingly simple practice helps leaders prioritize effectively and keep the message to the organization clear.
Repeatedly reinforce organizational priorities. Even in seemingly routine and operational meetings, it is often important to start with core values. For example, one CEO begins every operations meeting with a review of the company’s core values. Another printed the company’s vision and priorities and posted them on the office walls.
Strategy mindset: Make big moves early and often
Seek insights in unexpected places. CEOs stay abreast of trends in numerous ways, from speaking with clients and suppliers to visiting innovative companies within or outside their sectors. Some take more unorthodox approaches, such as seeking input from younger colleagues to learn about emerging pockets of demand or delving into undervalued customer segments. Read the story
Keep an eye on the downside. To understand their organizations’ risk exposure and develop contingency plans, leaders need to understand worst-case scenarios. One CEO regularly asks, “Which mistake can I afford to make, and which can’t I?” Read the story
Spotlight Jørgen Vig Knudstorp, former CEO of the LEGO Group, was intrigued by a subset of customers that most of the management team paid little attention to: adult enthusiasts. “They were viewed as a gray market,” he said. These older LEGO fans held annual conferences, and Knudstorp joined one. “I camped there for six days and had endless conversations with 500 to 600 people,” he said. By doing so, Knudstorp gained the community’s trust and an understanding of the niche market’s potential. After the conference, he was inundated with emails offering suggestions. He realized that “if I could deliver something that satisfied [the adults], I could deliver something that satisfied the average user as well.” LEGO’s adult community now totals more than one million people worldwide and accounts for 30 percent of LEGO’s global business.
Jørgen Vig Knudstorp
Former CEO of The LEGO Group
Executive chair, of The LEGO Group
Spotlight Piyush Gupta, CEO of DBS Bank, stress-tests ideas during meetings by unleashing the “wreckoon,” a concept based on Netflix’s “chaos monkey” that introduces random programming errors to test the resilience of the company’s software. At DBS, a picture of a raccoon shows up periodically in discussion documents, serving as a prompt to reflect on questions such as: What are we not thinking about but should be? What could be wrong with the path we’re going down? What would have to be true for this to be a bad decision? “You can tell people to dissent, but when you create a small mnemonic, people remember,” said Gupta. “You start to see it happen more in practice, and decision-making gets better as a result.”
Piyush Gupta
CEO of DBS Bank
McKinsey & Company
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
Spotlight When Siemens’s healthcare division was undergoing a difficult transformation, then-CEO of Siemens Klaus Kleinfeld invited a young woman whose life had been saved by Siemens-made medical machines onto the stage during a company town hall to share her story. “At the end, she read out the names of every engineer and manufacturing worker who had worked on those specific machines that saved her life onto the stage, to remind the organization of their larger purpose,” Kleinfeld recalled. “It was a life-changing moment. The impact was immediate—it brought the soul back to their business reminding them of their contributions: saving lives every day.”
Similarly, when Kleinfeld was CEO of Alcoa, he invited a NASA astronaut to an off-site management meeting to remind his team of the company’s broader purpose. The astronaut described what went through his mind in the last moments of the countdown. “Knowing Alcoa’s commitment to the highest quality provided comfort for him, as the aluminum that we produced was the only thing between him and outer space,” Klaus said.
Klaus Kleinfeld
Former CEO of both Siemens and Alcoa
Culture mindset: Find the one thing
Make it personal and meaningful. To make their vision resonate, leaders need to demonstrate that they personally care about the organization’s future and do so in an authentic, relatable way. Several CEOs we spoke with use personal stories to inspire people and signal that the company’s mission is about more than money. Read the story
Reshape the work environment. Almost a quarter of the leaders we interviewed regularly host intimate groups to hear from junior employees, “whose voices are often faint,” in the words of one CEO. Personally connecting with people on the front lines was also a universal theme. CEOs shared practices including the following:
Conducting skip-level meetings and in-person internal focus groups. One leader conducts “Meet 10” gatherings with ten employees across different levels every time he visits a regional branch or office.
Inviting junior team members to executive meetings to hear their perspectives and encourage their aspirations.
Hosting breakfasts with different groups (such as high performers, new graduates, or new joiners) on a rotating schedule “to ensure I can meet every key group.”
Personally conducting or reviewing employee satisfaction surveys: “Don’t leave it to your chief HR officer and the HR team.”
Maintaining an open-door policy for all employees to encourage spontaneous one-on-ones.
Taking teams to casual settings outside the office, a practice particularly valued in Asia. One Southeast Asian CEO said, “All big decisions are consulted on and taken in an informal setting.”
Visiting every store at least once a year.
“Walking the floor” and doing random pulse checks with employees.
Paying attention to communication even if not directly addressed: “I sometimes respond to emails not directed to me but I’m copied on to signal the importance.”
Organization design mindset: Solve for ‘stagility’
Emphasize accountability. In our interviews, CEOs stressed the need to explicitly delegate authority for initiatives and emphasize accountability at both the individual and collective level. Their practices include the following:
Summarizing action items with clear owners in the final ten minutes of every discussion to avoid “starting the next meeting by rehashing the last meeting.”
Occasionally “cold calling” on meeting participants as a signal that everyone must be involved in making and owning management decisions.
Personally reviewing and responding to business unit leaders’ reports. One CEO, who maintains a weekly reporting cadence, designed a custom report with his top team that includes key metrics, wins and failures, and new initiatives. Without fail, he replies to every weekly report. “This ensures leaders remain vigilant and responsive, while also giving me rapid updates on critical issues,” he said.
McKinsey & Company
Continue
Select a dimension to learn more
McKinsey & Company
How to align the organization
How to align the organization Culture mindset: Find the one thing
Make it personal and meaningful. To make their vision resonate, leaders need to demonstrate that they personally care about the organization’s future and do so in an authentic, relatable way. Several CEOs we spoke with use personal stories to inspire people and signal that the company’s mission is about more than money. Read the story
Reshape the work environment. Almost a quarter of the leaders we interviewed regularly host intimate groups to hear from junior employees, “whose voices are often faint,” in the words of one CEO. Personally connecting with people on the front lines was also a universal theme. CEOs shared practices including the following:
Conducting skip-level meetings and in-person internal focus groups. One leader conducts “Meet 10” gatherings with ten employees across different levels every time he visits a regional branch or office.
Inviting junior team members to executive meetings to hear their perspectives and encourage their aspirations.
Hosting breakfasts with different groups (such as high performers, new graduates, or new joiners) on a rotating schedule “to ensure I can meet every key group.”
Personally conducting or reviewing employee satisfaction surveys: “Don’t leave it to your chief HR officer and the HR team.”
Maintaining an open-door policy for all employees to encourage spontaneous one-on-ones.
Taking teams to casual settings outside the office, a practice particularly valued in Asia. One Southeast Asian CEO said, “All big decisions are consulted on and taken in an informal setting.”
Visiting every store at least once a year.
“Walking the floor” and doing random pulse checks with employees.
Paying attention to communication even if not directly addressed: “I sometimes respond to emails not directed to me but I’m copied on to signal the importance.”
Organization design mindset: Solve for ‘stagility’
Emphasize accountability. In our interviews, CEOs stressed the need to explicitly delegate authority for initiatives and emphasize accountability at both the individual and collective level. Their practices include the following:
Summarizing action items with clear owners in the final ten minutes of every discussion to avoid “starting the next meeting by rehashing the last meeting.”
Occasionally “cold calling” on meeting participants as a signal that everyone must be involved in making and owning management decisions.
Personally reviewing and responding to business unit leaders’ reports. One CEO, who maintains a weekly reporting cadence, designed a custom report with his top team that includes key metrics, wins and failures, and new initiatives. Without fail, he replies to every weekly report. “This ensures leaders remain vigilant and responsive, while also giving me rapid updates on critical issues,” he said.
Spotlight When Siemens’s healthcare division was undergoing a difficult transformation, then-CEO of Siemens Klaus Kleinfeld invited a young woman whose life had been saved by Siemens-made medical machines onto the stage during a company town hall to share her story. “At the end, she read out the names of every engineer and manufacturing worker who had worked on those specific machines that saved her life onto the stage, to remind the organization of their larger purpose,” Kleinfeld recalled. “It was a life-changing moment. The impact was immediate—it brought the soul back to their business reminding them of their contributions: saving lives every day.”
Similarly, when Kleinfeld was CEO of Alcoa, he invited a NASA astronaut to an off-site management meeting to remind his team of the company’s broader purpose. The astronaut described what went through his mind in the last moments of the countdown. “Knowing Alcoa’s commitment to the highest quality provided comfort for him, as the aluminum that we produced was the only thing between him and outer space,” Klaus said.
Klaus Kleinfeld
Former CEO of both Siemens and Alcoa
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
Teammwork mindset: Make the team the star
Empower high-performing teams and ring-fence low-performing members. Leaders need to signal to high performers that they have management’s confidence. One CEO noted, “I never second-guess the team and governance already in place.” Another told us, “I empower capable teams as much as possible, but I am more involved with weaker ones,” providing additional guidance and oversight but also guardrails.
Help high performers build their external profile. One CEO sends members of his executive team to external events in his place to help them raise their profiles and learn to engage with stakeholders—“but I check for consistency of messaging discreetly afterwards,” he adds.
Celebrate successes as a group. While CEOs get most of the public accolades for their organizations’ successes, the best leaders ensure that employees receive due credit. Read the story
Break down silos to broaden perspectives. One CEO periodically rotates top executives to other roles to help them understand one another’s views. “I make them conscious that the shoe can be on the other foot,” he said. In some situations, he also encourages senior executives to collaborate on decisions: “I encourage joint decision-making, even though the issue may belong within the business of one of the team members.”
Operating rhythm mindset: Get into a groove
Set the template and tempo. Getting the organization into the right operating groove is one of the most important areas of CEO influence. One leader told us that when he joined the company, it had an “iron bowl” culture—a Chinese idiom for guaranteed lifetime employment—and everyone left early. He started walking around the office at the end of the day and stopping at the desk of anyone still working. “At the beginning, there were perhaps two people there,” he recalled. “Within three months, there were probably 25 people, because they realized that hard work was recognized.”
Demand disciplined execution. Some CEOs make unexpected visits to their companies’ offices, warehouses, or stores to make sure the day-to-day operations meet a high execution bar while adhering to the company’s values. Read the story
Spotlight During Blair Pickerell’s tenure as chief executive of the Asia–Pacific region for HSBC Investment Management, every major achievement was marked by the ringing of a gong in the office. “We’d gather everyone around, explain why the colleague was chosen, hand them the mallet, and encourage them to hit the gong as hard as they could,” said Pickerell. “Many were shy at first because the sound would reverberate through other floors, but celebrating these wins loudly was the point and signaled the culture was changing.” The ritual helped create a sense of collective impact and unity.
Blair Pickerell
Chief executive of the Asia–Pacific region for HSBC Investment Management
Spotlight Laudomia Pucci, former CEO of fashion house Pucci, liked to make unannounced visits. “I would pop up unexpectedly at different company venues, such as stores or production plants,” she said. “Most times, staff and managers were delighted by the surprise visit; however, sometimes you noticed that routine could create more mechanical execution and processes can become less personalized and special. But you get to see the real operations behind the scenes. This approach opens the door to everyone and eliminates the ‘minus-one’ mentality on the team. People will speak to you candidly and directly, and they will trust you.”
Laudomia Pucci
Former CEO of Pucci
McKinsey & Company
Select a dimension to learn more
How to mobilize through leaders
How to mobilize through leaders
Teamwork mindset: Make the team the star
Empower high-performing teams and ring-fence low-performing members. Leaders need to signal to high performers that they have management’s confidence. One CEO noted, “I never second-guess the team and governance already in place.” Another told us, “I empower capable teams as much as possible, but I am more involved with weaker ones,” providing additional guidance and oversight but also guardrails.
Help high performers build their external profile. One CEO sends members of his executive team to external events in his place to help them raise their profiles and learn to engage with stakeholders—“but I check for consistency of messaging discreetly afterwards,” he adds.
Celebrate successes as a group. While CEOs get most of the public accolades for their organizations’ successes, the best leaders ensure that employees receive due credit. Read the story
Break down silos to broaden perspectives. One CEO periodically rotates top executives to other roles to help them understand one another’s views. “I make them conscious that the shoe can be on the other foot,” he said. In some situations, he also encourages senior executives to collaborate on decisions: “I encourage joint decision-making, even though the issue may belong within the business of one of the team members.”
Operating rhythm mindset: Get into a groove
Set the template and tempo. Getting the organization into the right operating groove is one of the most important areas of CEO influence. One leader told us that when he joined the company, it had an “iron bowl” culture—a Chinese idiom for guaranteed lifetime employment—and everyone left early. He started walking around the office at the end of the day and stopping at the desk of anyone still working. “At the beginning, there were perhaps two people there,” he recalled. “Within three months, there were probably 25 people, because they realized that hard work was recognized.”
Demand disciplined execution. Some CEOs make unexpected visits to their companies’ offices, warehouses, or stores to make sure the day-to-day operations meet a high execution bar while adhering to the company’s values. Read the story
Spotlight During Blair Pickerell’s tenure as chief executive of the Asia–Pacific region for HSBC Investment Management, every major achievement was marked by the ringing of a gong in the office. “We’d gather everyone around, explain why the colleague was chosen, hand them the mallet, and encourage them to hit the gong as hard as they could,” said Pickerell. “Many were shy at first because the sound would reverberate through other floors, but celebrating these wins loudly was the point and signaled the culture was changing.” The ritual helped create a sense of collective impact and unity.
Blair Pickerell
Chief executive of the Asia–Pacific region for HSBC Investment Management
Spotlight Laudomia Pucci, former CEO of fashion house Pucci, liked to make unannounced visits. “I would pop up unexpectedly at different company venues, such as stores or production plants,” she said. “Most times, staff and managers were delighted by the surprise visit; however, sometimes you noticed that routine could create more mechanical execution and processes can become less personalized and special. But you get to see the real operations behind the scenes. This approach opens the door to everyone and eliminates the ‘minus-one’ mentality on the team. People will speak to you candidly and directly, and they will trust you.”
Laudomia Pucci
Former CEO of Pucci
McKinsey & Company
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
Board relationship mindset: Build a foundation of trust
Develop a strong relationship with the board chair. CEOs approach this task in a variety of ways, with some providing the chair with daily or weekly updates. For example, one CEO meets with “all board directors, including the chair, every two weeks at least via calls or in-person meetings,” and another communicates with his chair “multiple times a week.” Others maintain a monthly or quarterly cadence. Whatever the frequency, every leader we interviewed ensured regular contact.
Connect with individual directors. Several leaders spoke about cultivating “board allies” among key directors and creating personal relationships with the board. “I conduct one-on-ones with key members to stay in touch with their changing perspectives and have pre-board [meeting] chats about important decisions,” one CEO told us.
Make an effort to meet outside of the boardroom. Encounters outside of the boardroom are just as important as those inside the boardroom. One CEO grabs dinner with all board members “at least once every month.” Another CEO, whose directors are more dispersed, said he does “board one-on-one dinners over the course of a year.”
Bring management together with the board. By regularly inviting members of their leadership teams to board meetings or hosting off-site retreats where management and board members can interact informally, CEOs can help the board get deep perspectives on different aspects of the business while giving company leaders exposure to the board. One CEO even pairs board directors with executives to work on specific value levers, such as technology. Another chooses radical transparency by encouraging open lines of communication between senior executives and board members: “There is complete transparency between us on what we are trying to do, how we think we are doing, and where we are not doing it right.”
How to engage with the board
McKinsey & Company
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Board capability mindset: Tap their wisdom
Tap into board directors’ capabilities and mindsets. The best CEOs know how to leverage the abilities and networks of their board directors. To understand their circumstances and concerns, one CEO meets with board members in person: “I visit them in their locations at least once a year so I can understand things from their perspective.”
Educate the board by bringing them to the front lines. Combining board meetings with opportunities to “go and see” can help directors understand the company’s context on the ground. For example, an airline CEO has hosted board meetings at a company hangar, a repair facility, and a training center.
Encourage board renewal. To help board members continuously improve, one former CEO enlisted a third party to collect feedback from other directors and top management, and then shared that feedback with each director. The process included all directors up for reelection as well as first-year board members.
Board meeting mindset: Focus on the future
Promote a forward-looking agenda. While part of the board’s role is protecting the company from risk, encouraging opportunities that can sustain long-term performance is just as important. The best CEOs seek such future-focused strategic input through the following tactics, among others:
Dedicating at least 30 minutes of every meeting to updates on strategic themes laid out at the beginning of the year, such as a digital transformation or a talent road map.
Leaving ample time for strategic discussion. A former CEO told us that he had a strict time-allocation rule: “Only 50 percent of the time was allowed for management updates; the rest focused on strategic discussion of the issues.”
Steering productive board meetings. The “art” of running productive meetings is just as important as ensuring that board meetings focus on the future. Practices include the following:
Aligning with directors before meetings on the key elements for the meeting agenda: “I take 15 minutes without paper to discuss the most important issues,” one CEO told us.
Sending board pre-reads at least five working days in advance of meetings: “Board directors are busy, but most will prepare well in advance and read through the papers.”
Communicating often between board meetings. One Chinese CEO set up a dedicated WeChat group for informal conversations with the board, while another sends the board monthly one-page summaries to promote transparency and efficient meetings.
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McKinsey & Company
Board relationship mindset: Build a foundation of trust
Develop a strong relationship with the board chair. CEOs approach this task in a variety of ways, with some providing the chair with daily or weekly updates. For example, one CEO meets with “all board directors, including the chair, every two weeks at least via calls or in-person meetings,” and another communicates with his chair “multiple times a week.” Others maintain a monthly or quarterly cadence. Whatever the frequency, every leader we interviewed ensured regular contact.
Connect with individual directors. Several leaders spoke about cultivating “board allies” among key directors and creating personal relationships with the board. “I conduct one-on-ones with key members to stay in touch with their changing perspectives and have pre-board [meeting] chats about important decisions,” one CEO told us.
Make an effort to meet outside of the boardroom. Encounters outside of the boardroom are just as important as those inside the boardroom. One CEO grabs dinner with all board members “at least once every month.” Another CEO, whose directors are more dispersed, said he does “board one-on-one dinners over the course of a year.”
Bring management together with the board. By regularly inviting members of their leadership teams to board meetings or hosting off-site retreats where management and board members can interact informally, CEOs can help the board get deep perspectives on different aspects of the business while giving company leaders exposure to the board. One CEO even pairs board directors with executives to work on specific value levers, such as technology. Another chooses radical transparency by encouraging open lines of communication between senior executives and board members: “There is complete transparency between us on what we are trying to do, how we think we are doing, and where we are not doing it right.”
Board capability mindset: Tap their wisdom
Tap into board directors’ capabilities and mindsets. The best CEOs know how to leverage the abilities and networks of their board directors. To understand their circumstances and concerns, one CEO meets with board members in person: “I visit them in their locations at least once a year so I can understand things from their perspective.”
Educate the board by bringing them to the front lines. Combining board meetings with opportunities to “go and see” can help directors understand the company’s context on the ground. For example, an airline CEO has hosted board meetings at a company hangar, a repair facility, and a training center.
Encourage board renewal. To help board members continuously improve, one former CEO enlisted a third party to collect feedback from other directors and top management, and then shared that feedback with each director. The process included all directors up for reelection as well as first-year board members.
Board relationship mindset: Build a foundation of trust
Develop a strong relationship with the board chair. CEOs approach this task in a variety of ways, with some providing the chair with daily or weekly updates. For example, one CEO meets with “all board directors, including the chair, every two weeks at least via calls or in-person meetings,” and another communicates with his chair “multiple times a week.” Others maintain a monthly or quarterly cadence. Whatever the frequency, every leader we interviewed ensured regular contact.
Connect with individual directors. Several leaders spoke about cultivating “board allies” among key directors and creating personal relationships with the board. “I conduct one-on-ones with key members to stay in touch with their changing perspectives and have pre-board [meeting] chats about important decisions,” one CEO told us.
Make an effort to meet outside of the boardroom. Encounters outside of the boardroom are just as important as those inside the boardroom. One CEO grabs dinner with all board members “at least once every month.” Another CEO, whose directors are more dispersed, said he does “board one-on-one dinners over the course of a year.”
Bring management together with the board. By regularly inviting members of their leadership teams to board meetings or hosting off-site retreats where management and board members can interact informally, CEOs can help the board get deep perspectives on different aspects of the business while giving company leaders exposure to the board. One CEO even pairs board directors with executives to work on specific value levers, such as technology. Another chooses radical transparency by encouraging open lines of communication between senior executives and board members: “There is complete transparency between us on what we are trying to do, how we think we are doing, and where we are not doing it right.”
Board capability mindset: Tap their wisdom
Tap into board directors’ capabilities and mindsets. The best CEOs know how to leverage the abilities and networks of their board directors. To understand their circumstances and concerns, one CEO meets with board members in person: “I visit them in their locations at least once a year so I can understand things from their perspective.”
Educate the board by bringing them to the front lines. Combining board meetings with opportunities to “go and see” can help directors understand the company’s context on the ground. For example, an airline CEO has hosted board meetings at a company hangar, a repair facility, and a training center.
Encourage board renewal. To help board members continuously improve, one former CEO enlisted a third party to collect feedback from other directors and top management, and then shared that feedback with each director. The process included all directors up for reelection as well as first-year board members.
Continue
Previous
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
Today’s CEOs interact with a broad range of stakeholders more than ever before. However, to maximize their time given their demanding schedules, they need to judiciously engage with the most important stakeholders and build relationships that only they can build. Excellent CEOs start by asking why: “Why are we relevant to each of our stakeholders? Why are they concerned about certain issues?” Deeply understanding the motivations of various constituents can help leaders find common ground.
Stakeholder interaction mindset: Get to the essence
Use every interaction as an opportunity. Any conversation with a stakeholder—whether customer, supplier, investor, or community member—is a chance to demonstrate the company’s commitment to its values and strategy. Many CEOs prioritize meetings with external stakeholders during every business trip.
Personally review customer and client feedback. One CEO does a monthly shift at a customer call center to hear customer concerns directly. Another attends important client meetings “even when my presence may not be necessary, as a way to send a signal and learn firsthand information.”
Regularly connect with investors and shareholders. “I talk with our largest shareholder two to three times a week,” one CEO told us, “and I see significant debt and equity holders three to four times a year.”
Engage directly with the media. One CEO personally reviews all updates to media and analysts, even answering WhatsApp messages from these groups. Most leaders don’t go that far, instead developing strategies to guide engagement with the most important members of these constituencies.
Keep your finger on the regulatory pulse. Regular contact with key regulators can foster a relationship of trust before any issues come up. One CEO sits on a regulator’s industry panel, while another frequently consults their compliance team: “They have the best sense on regulators and often personal insights beyond what’s on paper.” Such time investment not only introduces regulators to your company’s perspective but also can help shape their future policies.
How to connect with stakeholders
How to connect with stakeholders
Today’s CEOs interact with a broad range of stakeholders more than ever before. However, to maximize their time given their demanding schedules, they need to judiciously engage with the most important stakeholders and build relationships that only they can build. Excellent CEOs start by asking why: “Why are we relevant to each of our stakeholders? Why are they concerned about certain issues?” Deeply understanding the motivations of various constituents can help leaders find common ground.
Stakeholder interaction mindset: Get to the essence
Use every interaction as an opportunity. Any conversation with a stakeholder—whether customer, supplier, investor, or community member—is a chance to demonstrate the company’s commitment to its values and strategy. Many CEOs prioritize meetings with external stakeholders during every business trip.
Personally review customer and client feedback. One CEO does a monthly shift at a customer call center to hear customer concerns directly. Another attends important client meetings “even when my presence may not be necessary, as a way to send a signal and learn firsthand information.”
Regularly connect with investors and shareholders. “I talk with our largest shareholder two to three times a week,” one CEO told us, “and I see significant debt and equity holders three to four times a year.”
Engage directly with the media. One CEO personally reviews all updates to media and analysts, even answering WhatsApp messages from these groups. Most leaders don’t go that far, instead developing strategies to guide engagement with the most important members of these constituencies.
Keep your finger on the regulatory pulse. Regular contact with key regulators can foster a relationship of trust before any issues come up. One CEO sits on a regulator’s industry panel, while another frequently consults their compliance team: “They have the best sense on regulators and often personal insights beyond what’s on paper.” Such time investment not only introduces regulators to your company’s perspective but also can help shape their future policies.
McKinsey & Company
Select a dimension to learn more
McKinsey & Company
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
Spotlight Jim Owens, former Chair and CEO of Caterpillar, strictly compartmentalized his life and time during his tenure. “I could walk out the door of the office with a full briefcase, put it on the back seat of my car, and never think about work again that day,” he said. “By the time I got home, I had shifted gears to my family.”
Jim Owens
Former Chair and CEO of Caterpillar
Spotlight Naoual Ben Amar, CEO of Morocco’s LabelVie Group, recharges by playing sports, connecting with nature, and making solo trips to beautiful destinations such as Capri in Italy. She also takes weekly “balcony moments”: sitting outdoors to reflect on her work and emotions. “This practice helps me start the work week with a refreshed and positive energy,” she said. “It helps me reflect on what is most important. It allows me to think, ‘If I leave my job tomorrow, I will be at peace.’”
Naoual Ben Amar
CEO of LabelVie Group
Time and energy mindset: Manage a series of sprints
Start your day right. How CEOs spend their mornings can affect their effectiveness for the entire day. Here’s how some leaders get their days off to a strong start:
Waking up early to have “me time to prepare for the day.”
Spending ten to 15 minutes in nature.
Doing a game or puzzle to jump-start the brain.
Reading the news for one hour: “I try not to immediately get into daily emails when I wake up and rather update myself on macro issues.”
Jotting down tasks for the day before heading into the office.
Meditating to clear the mind and stay focused.
Infuse energy into your routine. Most CEOs have found their own personal ways to manage stress. Their microhabits include the following:
Closing the office door, playing loud music, and dancing for a few minutes each day.
Taking “think breaks” between meetings or meditating “to reset emotionally and mentally.”
Breathing deeply for 30 seconds to one minute before stepping into an important meeting.
Leaving the office once every hour.
Before an important decision, taking a walk along a favorite route to clear your head.
Committing to a regular workout routine and diet; one CEO makes sure to take 15,000 steps every day.
Maintaining a sleep routine even during travel: “The one point I don’t compromise on: seven hours of sleep.”
Keep a ‘tight but loose’ schedule. Leaders rely on their executive assistants or chiefs of staff to help guard their time for what matters most while leaving “some white space in the calendar,” in the words of an Australian CEO. She uses these gaps to regenerate and think about the most recent meeting and the meeting still ahead. Other practices include the following:
Dedicating meetings solely to topics that cannot be covered via email or short calls.
Maintaining a list of brief calls to complete within specific time blocks (such as during a commute).
Setting limits on time spent at client dinners and other external events.
Identifying the three “big rocks” you need to lift every week and focusing on those priorities.
Conducting a review at the end of each day or week: “I do a nightly review every day before I go to bed,” or “I make a summary of the day and a summary of the week consistently.”
How to manage personal effectiveness
Time and energy mindset: Manage a series of sprints
Start your day right. How CEOs spend their mornings can affect their effectiveness for the entire day. Here’s how some leaders get their days off to a strong start:
Waking up early to have “me time to prepare for the day.”
Spending ten to 15 minutes in nature.
Doing a game or puzzle to jump-start the brain.
Reading the news for one hour: “I try not to immediately get into daily emails when I wake up and rather update myself on macro issues.”
Jotting down tasks for the day before heading into the office.
Meditating to clear the mind and stay focused.
Infuse energy into your routine. Most CEOs have found their own personal ways to manage stress. Their microhabits include the following:
Closing the office door, playing loud music, and dancing for a few minutes each day.
Taking “think breaks” between meetings or meditating “to reset emotionally and mentally.”
Breathing deeply for 30 seconds to one minute before stepping into an important meeting.
Leaving the office once every hour.
Before an important decision, taking a walk along a favorite route to clear your head.
Committing to a regular workout routine and diet; one CEO makes sure to take 15,000 steps every day.
Maintaining a sleep routine even during travel: “The one point I don’t compromise on: seven hours of sleep.”
Keep a ‘tight but loose’ schedule. Leaders rely on their executive assistants or chiefs of staff to help guard their time for what matters most while leaving “some white space in the calendar,” in the words of an Australian CEO. She uses these gaps to regenerate and think about the most recent meeting and the meeting still ahead. Other practices include the following:
Dedicating meetings solely to topics that cannot be covered via email or short calls.
Maintaining a list of brief calls to complete within specific time blocks (such as during a commute).
Setting limits on time spent at client dinners and other external events.
Identifying the three “big rocks” you need to lift every week and focusing on those priorities.
Conducting a review at the end of each day or week: “I do a nightly review every day before I go to bed,” or “I make a summary of the day and a summary of the week consistently.”
Care enough to compartmentalize. One CEO likes to walk home after work—not for the exercise but to “detox from work” before entering his house. These types of routines set boundaries between leaders’ public and private lives, helping them maintain balance. Read the story
Make time for yourself. Many CEOs commented on the importance of their work aligning with their spirituality and of finding ways to mentally revive. Read the story
Other methods CEOs cited for recharging include the following:
Keeping a journal for reflections and to align professional and personal agendas.
Finding ways to deal with feelings and reactions, such as writing down emotions when they come up and accepting them.
Reflecting on spiritual values. “I read a prayer before each stressful meeting, which helps tone down the perception of threat,” one CEO told us, “to remind myself that, after all, it’s just work and the meeting is like a theater scene.”
Maintaining a close group of confidants; one female CEO asked a C-suite colleague to help her track her professional goals and milestones and be a part of her learning journey.
Taking mandatory holidays.
Spotlight Jim Owens, former chair and CEO of Caterpillar, strictly compartmentalized his life and time during his tenure. “I could walk out the door of the office with a full briefcase, put it on the back seat of my car, and never think about work again that day,” he said. “By the time I got home, I had shifted gears to my family.”
Jim Owens
Former chair and CEO of Caterpillar
Spotlight Naoual Ben Amar, CEO of Morocco’s LabelVie Group, recharges by playing sports, connecting with nature, and making solo trips to beautiful destinations such as Capri in Italy. She also takes weekly “balcony moments”: sitting outdoors to reflect on her work and emotions. “This practice helps me start the work week with a refreshed and positive energy,” she said. “It helps me reflect on what is most important. It allows me to think, ‘If I leave my job tomorrow, I will be at peace.’”
Naoual Ben Amar
CEO of LabelVie Group
Spotlight When State Bank of India was going through a transformation, former Chairman Om Prakash Bhatt showed a clip from the movie The Legend of Bagger Vance, in which a golfer who had lost his swing tried to get it back, to serve as a metaphor for the organization’s challenge. The clip went viral among employees, and the message resonated throughout the organization. “It is not easy to put the vision in practice unless you are able to align the organization,” Bhatt said. “One wants to do it intellectually, which is important, but the only way you can anchor it is with values, purpose, and emotions.”
Om Prakash Bhatt
Former chairman of State Bank of India
Continue
Care enough to compartmentalize. One CEO likes to walk home after work—not for the exercise but to “detox from work” before entering his house. These types of routines set boundaries between leaders’ public and private lives, helping them maintain balance. Read the story
Make time for yourself. Many CEOs commented on the importance of their work aligning with their spirituality and of finding ways to mentally revive. Read the story
Other methods CEOs cited for recharging include the following:
Keeping a journal for reflections and to align professional and personal agendas.
Finding ways to deal with feelings and reactions, such as writing down emotions when they come up and accepting them.
Reflecting on spiritual values. “I read a prayer before each stressful meeting, which helps tone down the perception of threat,” one CEO told us, “to remind myself that, after all, it’s just work and the meeting is like a theater scene.”
Maintaining a close group of confidants; one female CEO asked a C-suite colleague to help her track her professional goals and milestones and be a part of her learning journey.
Taking mandatory holidays.
Leadership model mindset: Live your ‘to be’ list
Seek to continuously grow. Learning is essential for leaders to stay at their best. Most CEOs we spoke with are prolific readers. One even set up an intelligence team: “I start my day reading the reports and notes my team produces.”
Share your personal life in an authentic way. Some leaders find that sharing personal stories with their teams can make them seem more “human” and relatable and allows them to act in a way that is consistent with their strengths and values. One CEO’s approach is to “live one whole life and be prepared to discuss your entire life openly, such as leaving early to see a child’s performance.”
Always give hope, no matter how dire the circumstances. Effective leaders provide encouragement during tough times, with some using storytelling to inspire employees. Read the story
Perspective mindset: Stay humble
Don’t make it about you. To foster a sense of shared mission, CEOs develop numerous ways to demonstrate humility and service leadership. For example:
Actively listening during meetings to show that you know that you don’t have all the answers and are open to learning. “I do more listening, as I have learned the power of the shadow I create.”
Solicitating input from others first in every meeting. This was a common habit many CEOs deliberately adopted. “At every meeting, I make it a habit to speak last.”
Inviting people to voice contrary opinions. “I always say that [my team’s] job is to prove or disprove my hypothesis and not just to say yes,” one leader said. Another ensures that each action is thoroughly debated by the team to “ensure my opinion isn’t simply taken without healthy discussion.”
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McKinsey & Company
Spotlight When State Bank of India was going through a transformation, former Chairman Om Prakash Bhatt showed a clip from the movie The Legend of Bagger Vance, in which a golfer who had lost his swing tried to get it back, to serve as a metaphor for the organization’s challenge. The clip went viral among employees, and the message resonated throughout the organization. “It is not easy to put the vision in practice unless you are able to align the organization,” Bhatt said. “One wants to do it intellectually, which is important, but the only way you can anchor it is with values, purpose, and emotions.”
Om Prakash Bhatt
Former Chairman of State Bank of India
Select a dimension to learn more
McKinsey & Company
Leadership model mindset: Live your ‘to be’ list
Seek to continuously grow. Learning is essential for leaders to stay at their best. Most CEOs we spoke with are prolific readers. One even set up an intelligence team: “I start my day reading the reports and notes my team produces.”
Share your personal life in an authentic way. Some leaders find that sharing personal stories with their teams can make them seem more “human” and relatable and allows them to act in a way that is consistent with their strengths and values. One CEO’s approach is to “live one whole life and be prepared to discuss your entire life openly, such as leaving early to see a child’s performance.”
Always give hope, no matter how dire the circumstances. Effective leaders provide encouragement during tough times, with some using storytelling to inspire employees. Read the story
Perspective mindset: Stay humble
Don’t make it about you. To foster a sense of shared mission, CEOs develop numerous ways to demonstrate humility and servant leadership. For example:
Actively listening during meetings to show that you know that you don’t have all the answers and are open to learning. “I do more listening, as I have learned the power of the shadow I create.”
Solicitating input from others first in every meeting. This was a common habit many CEOs deliberately adopted. “At every meeting, I make it a habit to speak last.”
Inviting people to voice contrary opinions. “I always say that [my team’s] job is to prove or disprove my hypothesis and not just to say yes,” one leader said. Another ensures that each action is thoroughly debated by the team to “ensure my opinion isn’t simply taken without healthy discussion.”
Leadership model mindset: Live your ‘to be’ list
Seek to continuously grow. Learning is essential for leaders to stay at their best. Most CEOs we spoke with are prolific readers. One even set up an intelligence team: “I start my day reading the reports and notes my team produces.”
Share your personal life in an authentic way. Some leaders find that sharing personal stories with their teams can make them seem more “human” and relatable and allows them to act in a way that is consistent with their strengths and values. One CEO’s approach is to “live one whole life and be prepared to discuss your entire life openly, such as leaving early to see a child’s performance.”
Always give hope, no matter how dire the circumstances. Effective leaders provide encouragement during tough times, with some using storytelling to inspire employees. Read the story
Perspective mindset: Stay humble
Don’t make it about you. To foster a sense of shared mission, CEOs develop numerous ways to demonstrate humility and servant leadership. For example:
Actively listening during meetings to show that you know that you don’t have all the answers and are open to learning. “I do more listening, as I have learned the power of the shadow I create.”
Solicitating input from others first in every meeting. This was a common habit many CEOs deliberately adopted. “At every meeting, I make it a habit to speak last.”
Inviting people to voice contrary opinions. “I always say that [my team’s] job is to prove or disprove my hypothesis and not just to say yes,” one leader said. Another ensures that each action is thoroughly debated by the team to “ensure my opinion isn’t simply taken without healthy discussion.”
Continue
Previous
Continue
Previous
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
How to manage personal effectiveness
How to connect with stakeholders
How to engage with the board
How to mobilize through leaders
How to set the direction
How to align the organization
