A client of mine recently shared with me a 3-minute video by Simon Sinek describing why the title CEO needs to be changed to CVO - Chief Vision Office. I'm going to take the next 5 minutes to describe to you why that's a bad idea.
In Sinek's video, he suggests that the primary function of the CEO is to set the Vision. That's where he gets it only 20% right.
In Sinek's video, he suggests that the primary function of the CEO is to set the Vision. That's where he gets it only 20% right.
If I could offer a metaphor, the CEO's role is to set the Direction of the organization - or the North Star, which includes but is not limited to the Vision. The star suggests direction, a focal point. The star is what leads sailors to land. It's what teachers use on your assignments when they want you to pay attention to something. The wise men followed the Star of Bethlehem to Jesus. The Star best represents your role as leader - setting the Direction and Focus. I'd like to use the 5-point star to explain the executive nature of your CEO role, that reaches far beyond only Vision, and does not limit one to a role of "Chief of Executives".
The 5 point star represents the 5 executive functions that you, and only you, as CEO, have the authority, accountability and responsibility to execute. Your job is about the execution of these essential 5 functions. That's why you are the Chief Executive. You are the ultimate leader of the organization's ability to execute. So how do you do that? Here is a short description of the 5 functions, and some additional resources to help take you deeper into them.
The 5 point star represents the 5 executive functions that you, and only you, as CEO, have the authority, accountability and responsibility to execute. Your job is about the execution of these essential 5 functions. That's why you are the Chief Executive. You are the ultimate leader of the organization's ability to execute. So how do you do that? Here is a short description of the 5 functions, and some additional resources to help take you deeper into them.
Point # 1 of the star relates to Vision and Mission. Practically speaking, most organizations inherit their Vision and Mission from the Founder. In fact, I would suggest that Vision and Mission are the primary responsibility of the Founder, not necessarily of the CEO. The CEO's responsibility is to steward the Vision and Mission. To evolve it as times change. Sinek suggests that operators-turned-CEOs lack vision and that is where they fall down. On the contrary, anybody can have vision - it is not some mystical power reserved only for those extraordinary founders like Steve Jobs. Anyone can do it and should do it. The problem comes when people don't do it or delegate it. To read more about how to set or evolve the Vision and Mission for your organization, check out this article I wrote for the Leader to Leader journal in 2018 - it was their most downloaded article that year: Crafting the Ideal Mission Statement for your Organization.
Point #2 of the star is Strategic Planning - choosing the products you will take to market, the markets you will play in, and deciding the capabilities you will invest in so that you successfully achieve the organization's Vision and Mission. The authority to demand strategic planning from your team rests squarely on your shoulders as CEO. It takes courage and gumption to force your executives to pull their heads out of the day to day and take a long range look when the stress and strain of today's urgent issues press onwards. It is your job to execute the essential process of strategic planning every few years, and to monitor it at all times. One of my favourite books about Strategic Planing is Playing to Win, by AG Lafley and Roger Martin. (Amazon affiliate link.)
Point #3 of the star is Allocating Resources. There is nobody else in the organization as responsible as you are for securing the necessary capital/funding to resource your strategic plan. This isn't about Vision. This is about execution, which you as the Chief Executive, are responsible for. You have to fund hiring, you have to fund development, you have to fund facilities, you have to fund any number of initiatives that will move your strategic plan forward. Everybody is looking to you for both accessing and allocating the funding to the organization's strategic priorities.
Point #4 of the star is Installing Management Process. Your management process is the system by which you align the organization to the strategic priorities and then hold one another accountable to effective execution. The CEO is responsible for executing on this function - for deciding which system to use, and then assembling resources to administer it. Intel, Apple, Google and Amazon for example installed a system of OKRs (Objectives Key-Results), other organizations use Balanced Scorecard, others use the 4DX model. I'm less fussed about which system you use, so long as you implement one. Great reads on this subject are High Output Management by the late Andy Grove, and Measure What Matters by John Doerr. (Amazon affiliate links.)
Point #5 of the star is Culture and Values. Much like Vision, culture and values are typically set by the Founder, and the CEO is responsible for stewarding and evolving them as times change. You, as CEO, hold the ultimate accountability for the set of beliefs and behaviours your employees exemplify every day as they execute the organization's strategic priorities. Check out how Campbells' former CEO, Doug Connant, evolved the culture to help further that organization's Vision and Mission: Managing with Kindness and Humanity.
At the centre of the star are two qualities a CEO possesses that keep the star in focus: Passion and Courage. It takes gumption to execute the 5 essential functions of the Chief Executive Office. You are not the Chief of the Executive group. You are the Chief Executive. There are times when you will be required to demand that people pay attention to things they might otherwise lose site of because they are not in charge of these essential executive tasks. It takes passion because without passion your commitment would wane - nobody wants to focus on something for an extended period of time that is draining to them. Passion about your mission gives you and it energy.
So while I applaud Simon Sinek for creating a dialogue about your title, I would caution you to think twice about changing it. Your role is so much more than Vision. The 5 functions of the Leadership Star are about execution. THAT is why you are called the Chief Executive Officer.
Point #2 of the star is Strategic Planning - choosing the products you will take to market, the markets you will play in, and deciding the capabilities you will invest in so that you successfully achieve the organization's Vision and Mission. The authority to demand strategic planning from your team rests squarely on your shoulders as CEO. It takes courage and gumption to force your executives to pull their heads out of the day to day and take a long range look when the stress and strain of today's urgent issues press onwards. It is your job to execute the essential process of strategic planning every few years, and to monitor it at all times. One of my favourite books about Strategic Planing is Playing to Win, by AG Lafley and Roger Martin. (Amazon affiliate link.)
Point #3 of the star is Allocating Resources. There is nobody else in the organization as responsible as you are for securing the necessary capital/funding to resource your strategic plan. This isn't about Vision. This is about execution, which you as the Chief Executive, are responsible for. You have to fund hiring, you have to fund development, you have to fund facilities, you have to fund any number of initiatives that will move your strategic plan forward. Everybody is looking to you for both accessing and allocating the funding to the organization's strategic priorities.
Point #4 of the star is Installing Management Process. Your management process is the system by which you align the organization to the strategic priorities and then hold one another accountable to effective execution. The CEO is responsible for executing on this function - for deciding which system to use, and then assembling resources to administer it. Intel, Apple, Google and Amazon for example installed a system of OKRs (Objectives Key-Results), other organizations use Balanced Scorecard, others use the 4DX model. I'm less fussed about which system you use, so long as you implement one. Great reads on this subject are High Output Management by the late Andy Grove, and Measure What Matters by John Doerr. (Amazon affiliate links.)
Point #5 of the star is Culture and Values. Much like Vision, culture and values are typically set by the Founder, and the CEO is responsible for stewarding and evolving them as times change. You, as CEO, hold the ultimate accountability for the set of beliefs and behaviours your employees exemplify every day as they execute the organization's strategic priorities. Check out how Campbells' former CEO, Doug Connant, evolved the culture to help further that organization's Vision and Mission: Managing with Kindness and Humanity.
At the centre of the star are two qualities a CEO possesses that keep the star in focus: Passion and Courage. It takes gumption to execute the 5 essential functions of the Chief Executive Office. You are not the Chief of the Executive group. You are the Chief Executive. There are times when you will be required to demand that people pay attention to things they might otherwise lose site of because they are not in charge of these essential executive tasks. It takes passion because without passion your commitment would wane - nobody wants to focus on something for an extended period of time that is draining to them. Passion about your mission gives you and it energy.
So while I applaud Simon Sinek for creating a dialogue about your title, I would caution you to think twice about changing it. Your role is so much more than Vision. The 5 functions of the Leadership Star are about execution. THAT is why you are called the Chief Executive Officer.