Studies show that decisions made during the first few months of a CEO’s tenure are disproportionately important in determining his success. However, several issues—unique to CEOs and often overlooked—complicate or even cloud good decision making.
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First, new CEOs often spread themselves thin in an attempt to understand every stakeholder and nuance of the business. Second, they are heavily shaped by current employees’ perspectives. These factors can lead to a superficial, biased, or insufficient understanding of the organization’s strengths and weaknesses.
What you need to know to avoid mishaps new CEOs make
If you’re a chief exec or even an executive leader:
• Do you have a comprehensive understanding of the groups that most affect the organization’s ability to reach its goals?
• Do you know who your top customers and most critical employees are?
Once you’ve identified them, ask yourself:
• Why do those customers and employees choose your company?
• Why do they stay?
• What is the likelihood of their future loyalty?
One Gallup client learned her best customers were leaving not because they had problems, but because too many people were involved in fixing them.
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