10 Things I Didn't Know Before Becoming a CEO

Happy Friday,

The CEO role is the least understood position in an engineering organization. Here are ten things I didn’t know or fully appreciate until I became a CEO.

1.     Most people see financial results and think they summarize the year. For the CEO, there were so many risks taken, so many threats mitigated, so many decisions made and battles fought that annual earnings feel like a far too simplistic representation.

2.     You’re forced to know more about some of the people you employ than you ever wanted to. Sometimes more than their own families know. A surprising percentage of people reveal issues that put the organization and its people at risk. You have to get them out, but that's more stressful and risky than I ever imagined, and it's definitely not engineering. And of course, you can't talk about any of it. Not fun.

3.     People believe too strongly in job security. When all the risks are in the CEO's face every day, the contrast between people's perception and reality becomes stark.

4.     Senior leaders are more closely scrutinized in social settings than they think, at least in well-run companies. Upper management get-togethers aren't the relaxed, let-your-hair-down country club they sometimes appear to be. This leads to #5.

5.     The pool of candidates to be the next CEO is a lot smaller than people think. Most or all senior executives may have already been ruled out.

6.     When the Board of Directors doesn’t keep up, the company incurs an ongoing opportunity cost, greater risk, and, over time, a flatter growth and profit trajectory.

7.     Boards rarely keep up, especially incestuous boards.

8.     Loyalty and opportunities flow to the people who take ownership of their job and work for the mission. Both silently bypass those who just work for the money.

9.     You take on the role of CEO because you honestly believe you’re the best person to do it. Compensation is a red herring far down the list.

10.  Unlike every other job, you wear the CEO role 24/7. There's no off switch, and you’re in character everywhere you go for however many years you do it. Even at home, to some extent. CEO is a persona you adopt, it's not a job you do. Going to Home Depot on a Saturday? Better put on a clean shirt and look the part. The only time a CEO isn’t at work is when they exit the role.

Now you know what I didn't. Maybe a little better view of the landscape as you navigate your own career path.

Have a great weekend,

Dave

Feedback and blowback are always welcome: dave@goodnewsfriday.com

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