As a normal human being, a chief executive also makes a mistake. Some of the mistakes that they make are worse than the others. The worst thing is a mistake from a CEO can doom the company strategy, damage the company or waste company resources. Cited from CNN Business, here is the list of 4 biggest mistakes CEOs make.
1. Take a Long Time to Fire a Direct Report
According to the report, most of CEO regrets not acting more quickly to get rid of a direct report who wasn’t working out. A high-functioning and cohesive executive is crucial for any CEO’s success. Consequently, they are also important for company success.
However, many of them delay doing what they know they should do. Most of them don’t do it since they feel guilty because they have brought the person on. Moreover, after they have a long history together. Other than that, the CEO may worry that the high-profile dismissal raises concern among investors and employees.
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2. Lose Touch with Front-line Employees
Nowadays, companies have become more decentralized. Thus, innovation often happens in the field.
Therefore, a CEO needs to spend a lot of time in the field. Especially, on their first 18 months. Besides, the CEO and all team managers must actively foster an open culture. Other than that, they have to also welcome ideas and criticism from employees.
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3. Not Stay in Your Company’s Lane
In the beginning, a CEO indeed made the plans, goals, and objectives of their company. However, sometimes they do not consistently and honestly assess what the company needs to get there.
For instance, when the market demand change, a CEO may want to also upgrade their product. Yet, sometimes, the upgrade does not match the company’s core business.
4. Unaware of Their Pathologies
Chief executives who don’t figure out what their emotional triggers are can do a lot of damage. Their pathology may affect the decision they make. Therefore, he may hurt a lot of people because of their pathologies.
For instance, if the CEO is a closet narcissist, he risks alienating his executive team.
In order to be a good CEO, then they need to avoid these 4 biggest mistakes CEOs make.
