Leadership Qualities of a CEO
Introduction
Leaders are a necessity, but so are followers. It is essential to understand that a company comprised of only leaders will struggle with the execution process and will cause burnout for the employer. Leaders should be able to provide structure for their staff (Fussell, & Goodyear, 2018, p. 87). They empower, inspire, motivate, and influence their workers to comprehend and execute their assigned duties/the vision effectively. Planning well and encouraging employee engagement are great attributes for leaders to successfully reproduce other great leaders (Graziano, 2016, par. 3). A good leader can be a good listener and is willing to be accountable for the successes or failures of the team. This paper will review the literature on the role of a leader, characteristics that make a leader stand out, and how to make decisions when you are responsible for a team. This paper also seeks to analyze motivational approaches needed when leading others and will give examples of some recognized leaders. Finally, this paper will evaluate the characteristics of a CEO to determine if ego gratification or job fulfillment is more desired from leaders.
Who is a Leader?
While everyone is aware of what leadership entails, very few people understand the true meaning of leadership. The concept of leadership is taken for granted and is often assumed to be known. Most people consider managers as leaders, yet not all managers qualify to be leaders. Leadership can be defined from the business acumen perspective, which entails the ability to set and pursue of an organization. It is also defined from the perspective of human qualities such as humility, showing empathy, or diversity. Though different, each of these definitions is correct. The reason is that every leader has his or her attributes of leadership, which shapes how they lead their followers. Having said that, a leader is a person with the ability to see how things can be improved and rally his followers to move towards a set vision. Therefore, a leader is any person who set a vision and works through followers to make the vision a reality. Rallying people requires motivation skills and putting people first by being emphatic and connecting with people to attain success (Miscenko, Guenter, & Day, 2017. P. 606). The most outstanding aspect of leadership is the vision to be pursued and the ability to rally his or her followers towards the vision. Leaders are people a vision, the plan, and step by step guide for implementing the vision. In a business setting, leaders are given titles such as the CEO, managers, supervisors, or administrators.
Successful Qualities of a Good Leader
There are certain qualities that make a leader stand out from others. Leaders in history are many, but some have been more successful than others, and to a considerable proportion were never successful. Cottrell and Nichol (2014, p.715) proposed specific qualities that make a successful leader; these include honesty and integrity, ability to inspire followers, decision-making capabilities, empowerment and delegation, excellent communication skills, and passion, and commitment towards the vision.
A good leader must have the ability to influence his followers to achieve a shared goal (Fussell, & Goodyear, 2018. P., 87). Leading by example, has been demonstrated by most successful leaders in history. For instance, Richard Branson is well known for leading from the front and is often found among the junior and subordinate staff, a time performing duties meant for the junior staff. This further inspires his employees to be committed and give the best to the organization in terms of productivity. A leader must have an ingrained commitment and passion for vision and goals they set to attain. Therefore, excellent leaders must be visionaries and able to see their goals as things they have already achieved.
Furthermore, the goals must be achievable, measurable, and shared by the followers. Since leaders require support from followers, they need to integrate the broader goals with those of their followers. Excellent communication skills are critical in rallying and inspiring followers to soldier on to attain set goals. For instance, Nelson Mandela set his vision on self-rule, which resonated well with his followers. On achieving the goal of ending Apartheid rule, South Africa gained independence.
Examples of Recognized Leaders
The greatest and recognized leaders in history are many, including the biblical Moses, Nelson Mandela, Steve Jobs, Warren Buffet, Dalai Lama, Jeff Bezos, Henry Ford, and Richard Branson, among others. Each of these leaders is recognized for their contributions to humanity and society. The leadership of Moses is recognized by Christians and non- Christians for leading the Jewish nation from slavery in Egypt to Judah. Moses demonstrated a high level of integrity by choosing to suffer for his people over enjoying pleasures of sin in the royal family. He set a vision of setting Jewish free from slavery and involved attaining several goals, including wandering the desert and fighting many wars before reaching the Promised Land. He also demonstrated firmness in decision making as well as commitment and passion for which is the cause. In line with Kumar’s (2015) assertion, Moses decided to forsake Egypt regardless of risks and fear from the wrath of the King. The leadership qualities demonstrated by Moses has made him one of the most recognized among Jews and Christians as the ablest leader of all the time.
Jeff Bezos of Amazon.com is highly recognized for his entrepreneurial and strong leadership capabilities. The success of the world’s largest online retailer can be attributed to Jeff’s leadership skills. As note by Schoemaker et al. (2018, par. 4), Jeff has demonstrated leadership qualities such as delegation, decision making, communication skills, and employee motivation. Delegation involves working small teams of five to seven people that are assertive and offer fresh ideas and information. Jeff Bezos makes a quick decision in a risky situation without fear of failing. He believes that invention and failure go hand-in-hand, and people learn from failures. The Amazon CEO communicates in a clear and easy to understand manner, which enhances the execution of company strategies and objectives. Through effective communication, Jeff Bezos makes his employees feel part of the Amazon.co (Schoemaker et al., 2018, par. 9). Therefore, Jeff is primarily recognized for his leadership attributes that have driven Amazon to greater success in online retailing.
Sir Richard Branson
Sir Richard Branson is A British entrepreneur and founder of the Virgin Group. He steered the Virgin Group to success. Branson has several traits that make him an outstanding leader. These characteristics include the ability to delegate, decision making, excellent communication skills, and motivational approaches. The delegation has reduced his workload and provides other employees with opportunities to grow their careers. Delegation improves employees’ leadership skills by building their confidence and supporting the business (Graziano, 2016, par. 12). Decision making in the risky condition is another crucial attribute associated with the leadership style of Branson. Ding to Branson, this fosters the culture of innovation, and he encourages employees to pursue his style. He also leads by example, by practicing what he says and must be ready to soil his hands and be innovative to earn respect from other employees (Graziano, 2016, par. 13). He is recognized for his excellent communication skills. Branson communicates concisely and consistently to deliver his messages. Good communicators are also good listeners, which combine to give an individual the leadership skills required in today’s business world (Schoemaker et al., 2018, para.11). He is vehemently inspirational to his employees, particularly junior ones. Branson walks around to have a one-on-one conversation with his employees, is able to inspire and motivate their employees for higher productivity. Graziano’s (2016, par. 14) study established that engaging with employees helps to create the perception that the boss is part of the team as employees also feel part of the organization.
Critical Analysis
Even though literature suggests that CEOs should put aside their personal gratification and work as a team to benefit the organization, this is not always the case. Instead, most CEOs are interested in high salaries and bonuses. On average, CEO compensations have increased five times over the past five years (Mishel & Wolfe, 2019). The high pay and bonuses are attributed to some factors, in my view, justify the huge salary and bonuses. Even though colossal payment can be costly to the struggling firms, they are an incentive by the board of management pegged on specific targets that must be achieved (Cowen (2019, par.7). However, there is no point in paying huge salaries if the CEOs fail to meet the target. Lack of competent CEOs has also necessitated an increase in their compensation (Callan &Thomas, 2014, p. 208). Applying the law of supply and demand, it is justified to pay CEOs huge salaries and bonuses. The vast salaries are attributed to stiff competition for competent personnel around the world and the rapid growth in demand for qualified CEO’s. As noted by Cowen (2019, par. 4), high pay of CEOs can be attributed to increased business opportunities offered by top entrepreneurial companies
Besides having the basics skills required to run companies, CEOs are also expected to have additional skills to perform in the contemporary business world. Successful CEOs must be courageous, honest, humble, and focused on the capability to execute strategic planning and spur collaboration among team members (Cowen, 2019, p. 6). Besides, CEOs must have sufficient knowledge about financial markets to be able to predict how their companies will perform in the money markets (Cowen, 2019, p. 5). Today’s CEOs must possess better skills in public relations to avoid basic mishaps. Additionally, CEOs running multinational companies are required to be competent in cultural diversity. Knowledge of managing employees from different cultural extraction is a prerequisite for today’s Chief Executive Officers. The knowledge of information technology is also required of today’s companies (Callan & Thomas, 2014, p. 218). CEO’s with related information technology competencies contribute to the overall growth and performance of the company. Organizations today require CEOs who have the skills that can steer the company into profitability, which compels modern businesses to pay higher salaries and bonuses. Based on this analysis, I strongly support higher salaries and bonuses for the CEOs.
Characteristics of Successful CEOs
Decision Making
Successful CEOs are decisive and make decisions earlier, quickly, and are convinced of the choices they make. The decision- making process among successful leaders is consistent, even in situations with insufficient information and in unknown circumstances (Schoemaker et al., 2018, para. 10). High performing CEOs are decisive and understand that it is better to make a wrong decision than not making any decision at all. Effective CEOs can move with speed in the decision-making process (Schoemaker et al., 2018, para. 10). Additionally, they know when not to decide. They are ready to delay the process of decision making to allow for more critical information to surface on the consequences of making such a decision. However, after identifying a route, successful CEOs move with speed to make the decision. Backtracking by CEOs on decisions that they have made can cause loss of trust among employees.
Successful CEOs always endeavor to get backing from their employees and other partners. They focus on delivering business results by taking into consideration the inputs from stakeholders. According to Schoemaker et al. (2018, para. 9), successful CEOs achieve this by comprehending the needs and motivation of the stakeholders and then engage people to drive performance and by aligning them around the purpose of value creation. Successful CEOs engage stakeholders in every step of decision-making. By engaging stakeholders along with the plan and executing effective communication as well as influencing master plans, CEOs become successful. Additionally, successful CEOs make people, including different stakeholders, to understand their importance in the process.
A study by Schoemaker et al., (2018, par. 11) established that effective CEOs consider stakeholders’ input hence do not require to waste their energy trying to shield their teams from painful decisions. Successful CEOs get backing from their colleagues by making them feel confident about their success, even if it means making unpopular decisions. They are not afraid of conflicts as they pursue company objectives. Effective CEOs can handle divergent views and are willing to engage in disputes hence good conflict managers. As conflict managers, they give every party the chance to speak. They are good listeners and ask for inputs but do not make decisions driven by consensus.
Good Communicators
Successful CEOs are communicators. Successful CEOs can effectively communicate with other employees and clients. The communication must be in both directions between the CEO and the management team and other employees. A successful CEO receives information from other employees and clients through communication. Effective communication by CEOs boosts employees’ morale, which results in the timely completion of tasks (Kerns, 2016, p.14). Successful CEOs can communicate what they require and from whom, when they need it and how tasks should be performed. They are consistent and transparent in the way they communicate. They expertly translate their perception of the potential of the business and challenges and expected outcomes in a language that is clear and easy to understand. Successful CEOs are highly devoted to what they do. The most successful CEOs have strategic communication skills that enable them to negotiate and win contracts with the suppliers and other stakeholders, close sales, lure talented employees, and build customers and employee loyalty. Furthermore, the long-term success of CEOs is influenced by their ability to communicate the organization’s vision, strategy, initiatives, and ideas to the clients, employees, or stakeholders.
Delegation
Successful CEOs in today’s competitive business world must have the ability to delegate. To gain authority over other employees, CEOs must be credible, confident, and competent to build power that enhances the connection with other employees productively. Through delegation, employees feel trusted. Trust is essential in influencing and attaining shared objectives. Delegation helps in building confidence among the employees (Andrei, 2017, p. 25). As leaders, successful CEOs stick to what they say through their actions builds trust with the other staff. They can create partnerships with customers and other employees. Through delegation, CEOs develop loyalty from employees who feel appreciated and valued. This, in turn, reduces cases of employee attrition hence increased productivity and business growth. Through delegation, CEOs provide opportunities for employees and other managers to acquire new skills, thus career growth. The CEOs have the authority to lead other people within the organization. Being the highest authority in an organization, CEOs must stay focused when delegating by adhering to a laid down plan with the end objective in mind.
Motivational Approaches
Successful CEOs nurture their capabilities and motivate other team members with diverse skills. To succeed, leaders incorporate capabilities from other employees. Effective CEOs develop and direct teams towards achieving a shared objective by recognizing and leveraging individual unique abilities to achieve the results expected (Graziano, 2016, para. 14). They motivate other employees to strive towards achieving the set goals. Successful leaders are genuine and enhance the success of partners. Being real builds trust and respect among people and promotes communication. Successful leaders provide other employees with the skills and training they require, which motivates them to succeed. Successful CEOs create and maintain relationships with employees and customers. Building strong relationships creates the right image for the CEO and the organization, which in turn increases customer loyalty.
Ability to Bring Change
Today, organizations are embracing change very rapidly. Consequently, there is a need for companies to be flexible and transformative. Successful CEOs are ready to embrace change and remain in line with the changing market demands to compete (Kumar, 2015, par. 3).To be a successful leader, one must be ready to strategically and tactfully offer leadership and ensure success. To achieve change, successful CEOs must display transparency, identify disparities, and must provide opportunities to fill up these gaps.
Additionally, they can monitor progress and guide people to success while monitoring their results along the way. Successful CEOs initiate change and do not instill fear in others over the company’s direction (Graziano, 2016, para.13). Instead, they give inspiration to other employees to account for their roles in the change process. Also, they focus their attention on the importance of change and celebrate their achievements. CEOs must embrace change management by opening communication channels between themselves and their employees. This enables every employee to participate in asking questions, discussing challenges, and celebrating achievements.
Strategic Thinking
Having a strategy is a requirement for successful business leaders. Lack of strategy negatively impacts companies’ capabilities to sustain competitiveness in a rapidly changing business environment. Successful CEOs are strategic and can delegate, communicate, and develop solutions for different challenges (Kumar, 2015, par. 2). Successful leaders must create time for strategic thinking that enables them to manage the processes in an organization in a systematic manner.
Adaptability
Successful CEOs adapt quickly to a rapidly changing business environment. Effective CEOs are proactive and quickly adapt to new situations (Kumar, 2015, para. 2). Adaptability is a crucial skill that every CEO must possess to be successful. By being adaptable, CEOs can deal with situations that are not in the operation manual. Adaptable CEOs devote much of their time thinking about the long-term goals of the company, which enables them to identify warning signs early in time. Also, effective CEOs seek information and data from different sources, which allows them to sense change and make strategic moves to take advantage of the situation. Effective CEOs who are adaptable acknowledge the fact that several hurdles are encountered when executing change and consider mistakes as opportunities to learn and develop.
Reliability in delivering
Successful CEOs are capable of producing results reliably. Reliable CEOs end up being successful in their careers. Reliability is a crucial attribute for successful CEOs. Honest CEOs are steady and predictable and exhibit high levels of consistency and commitment (Schoemaker, 2018, par. 15). Effective CEOs can set expectations that are realistic in advance. Successful CEOs who are reliable have excellent skills in personal organization and planning. Their management styles entail holding meetings, having dashboards on deliverables, being accountable for sand monitoring performance, and taking quick corrective measures.
Conclusion
The paper has analyzed leadership qualities, including the definition, their characteristics, qualities of a good leader, and recognized leaders from around the world. Specific attributes of a successful leader include honesty and integrity, ability to inspire followers, decision-making capabilities, empowerment and delegation, excellent communication skills, and passion, and commitment towards the vision. A good leader must have the ability to influence his followers to achieve a shared goal and vision. The most recognized leaders in history are many, including the biblical Moses, Nelson Mandela, Steve Jobs, Warren Buffet, Dalai Lama, Jeff Bezos, Henry Ford, and Richard Branson, among others. These leaders are recognized for their contributions to humanity and society. While literature suggests that CEOs should put aside their personal gratification and work as a team to benefit the organization, this is not always the case. Instead, most CEOs are interested in high salaries and bonuses. The high pay and bonuses of CEOs are justified by some factors, including the performance target they are required to attain, the limited supply of qualified and competent CEOs in the market.
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