Writing for the HBR.org Blog Network, Roger Martin, Dean of the Rotman School of Management at the University of Toronto in Canada, reveals that an executive on the verge of promotion to head a large global company recently approached him for advice on how to be effective as a new CEO. Martin offered the executive five recommendations.
1) Grow the pie. Focus on increasing revenues, advises the author, and investment capacity will increase and new resources can be channelled to growth priorities without the need to cut absolute resources to non-priority areas.
2) Follow due process. Although CEOs aren’t restricted in making decisions – they have the power, for example, to move people on if they wish – Martin insists that it is vital they aren’t seen to be making arbitrary decisions. So new CEOs should “suck it up and suffer” until the people they’d like remove have been given a chance to improve following feedback. People won’t trust a leader who makes up the rules on a whim.