Survivor's Guide for New CEO

28/11/2012

1) Appreciate that doing the top job is qualitatively different - and more difficult - than being No. 2. The transition is much bigger than anyone ever imagines. If you think you are ready to step up then you probably are not.

2) Understand that managing the external dimensions will become far more important. The outside world is going to consume much more of your time as chief executive.

3) Do not attempt to micro-manage your business. Chief executives are paid to hire the right people and then make sure that they deliver....Ensure that you have the framework, prodecures and leadership team in place so that the right decisions are made.

4) Avoid the temptation to trash your predecessor and the organisation they have bequeathed to you....It is important to take the rest of the workforce with you, work with the grain of the culture you inherit, and change it in incremental steps.

5) Lead from the front. The chief executive sets the tone and the values of the organisation he or she runs.

6) Remember you are the custodian of the company's reputational capital, so both your professional and your personal life will be scrutinised mercilessly.

7) Appreciate that the relationship between the chief executive and the board has become more complex and nuanced. When that relationship fractures, there is generally one loser.

8) Stay close to the front line. Your customers, staff and competitors will tell you far more about what is really going on in the business than your fellow executives - or an army of management consultants - ever can.

9) Manage for the long time. You cannot run your company for the market or short-term returns. True corporate responsibility means creating sustainable value over the longer term.

10) Remain humble. The biggest threat to a successful chief executive is hubris. Find people who keep you grounded and remind you that you are human and far from perfect.

David Morgan is managing director for JC Flowers Europe and Asia. He was chief executive of Westpac Banking Corporation between 1999 and 2008.

For more information

Full article by David Morgan published in The Times 16 November 2011, available at http://www.thetimes.co.uk (registration required).