CEO Secret: Keep Everyone in Sync
Let's say shareholders are unhappy with your performance as a CEO.
By trial and error, they can make a replacement N times.
One day, all the stars may align and the company will leap forward.
But there's a risk that competitors will own the market by then.
And what if the problem isn't with the CEO at all?
To double-check that, just ask one question:
"How often does the board mention the company's value?"
If the answer is "Very rarely" or "Never," a lot becomes clear.
Can you become a hockey champion without counting goals?
Speed measurements and successful pass counts are important, but secondary.
Yes, sometimes debt repayment or Q4 profits are a top priority.
But you don't start a business just to survive; you start it to grow.
Are customers getting more value? Okay, the value of the company is growing.
According to Drucker, "What gets measured gets managed."
But if you don't do this, a host of problems arises:
Team conflicts,
Hiring difficulties,
Customer complaints,
Decreased CEO motivation,
Low return on invested capital,
Profit margin reduction, and so on.
To unite their efforts, shareholders and CEOs need a "polar star".
