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The DNA of amodern CEO

The DNA of the modern CEO

What does it take to be asuccessful CEO?

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Is the DNA of the modern CEO changing? Are their values, traits and personal goalsdifferent from what they were twenty, ten oreven five years ago?

If you asked that question to CEOs ten yearsago, would their response be very different tothe one you would receive today?

Society has changed rapidly and thereforeleadership has had to evolve.

Ultimately the CEO is, and always will be,responsible for a company’s success,reputation and accountable for its results.However, as the world and technology moveon at a seemingly accelerating pace, everyindustry is changing so it’s unsurprising thatthe role of the CEO is having to adapt.

Managing change means changing how we manageModern CEOs are embracing change. Those who are still leading‘top-down’ hierarchies are going to be left behind. The modernCEO knows how to effectively build and lead collaborativeleadership teams by understanding and embracing change.

But what does a modern CEO look like?In this discussion paper, we share insights and stimulate thinkingon a variety of issues surrounding the DNA of a modern CEO.This paper sets out to explore answers to questions such as;What do modern CEOs look like? How do modern CEOs needto adapt to steer companies into the future? How will theylead? and How is technology impacting on the modern CEO?

At Holmes Noble, we advise and work closely with the leaders oftoday, coaching them to ensure they’re fully aware of trends anddevelopments so they can actively make a difference withinorganisations.

At a roundtable event held in Birmingham, inMay 2017, we invited some of the UK’s seniorCEOs and Directors, covering multipleindustry sectors, to discuss the modernissues CEOs face today. So much of the world we live and work in has changed and,with it, a new breed of leader has emerged.

For nearly 100 years, leadership has been a top-down game.

The industrial revolution brought about scale and the only wayleaders knew how to manage this scale was through hierarchy.But today’s marketplace moves and changes at great speedand, the inherent slowness of the large hierarchy, is rapidlybeing trumped by the need for speedy, market-based decisions.

Mr traditional CEOA recent study by Fortune Insiders, asked both current CEOsand rising millennial leaders to identify the talents they thoughtwould be most important to a CEO, ten years from now.

Millennial leaders put the highest priority on interpersonal skills;“their prototypical leader is an inspiring coach, a compellingcommunicator.” As one focus group participant put it; “youdon’t tell people what to do, you empower them.” Whilstcurrent CEOs give priority to “critical thinking” and “businessand management skills” as well as “stakeholdermanagement.”

The general feeling at the roundtable was that one person, oneleader, simply doesn’t have the time or resources to sift throughmounds of data about their company’s performance, industry,economic environment or competitors. Nor do they have thetime to disseminate the right data to the right people in realtime. Organisations move too quickly for that model to beeffective.

How and why isleadership changing?

The DNA of the modern CEO

“I think the modern CEO lookslike somebody who is agile,current and relates to a wideaudience. Leadership is changingso much. There is so much moredemand on the CEO to be thevisionary of the company and tobe multi-faceted.”

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How are modern CEOs changing?

The DNA of the modern CEO

There are CEOs who believe, “these are my values;therefore, everyone will follow these values.” Most of thetime when leaders communicate their business values,they haven’t ensured their whole team was part of thatprocess.

Value-based ‘leadership’ needs to change. CEOs andleadership teams cannot simply choose the values andthink that it will become the culture.

Michelle Carson-Williams, founder and CEO ofHolmes Noble, suggests:

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“Leaders today have to work anddemonstrate values 24/7. Youhave to work at it on a continuingbasis. You have to continueworking at it if you think it’s goingto stay alive and well. It does haveto become a part of your DNA.”

“Leaders need to change levels ofdelegation and decision making atall levels. Future leaders need tofocus on guiding andcommunicating the vision, leadinga larger leadership team andfinding new ways to develop andgrow them. CEOs need to dependon a solid leadership team aroundthem that are taking on moreleadership responsibilities andpass increasing amounts ofresponsibility to employees.”

The march of the millennial leaderMillennials are changing the workforce and are quicklyrising up the leadership ranks. By 2030, millennials will beapproximately 75% of the global workforce.

Although it was agreed at the roundtable event thatmillennial leaders are naturally fluent in technology, thereare many CEOs, outside of the millennial bracket, thateasily incorporate technology into their role to create amore efficient workflow. This gives CEOs an immediateadvantage in business – they can find answers tocomplex questions in seconds which also feeds theirneed to be more creative.

This new breed of CEO sets out to inspire theirleadership teams, keeping them focused on thecompany’s greater mission and purpose. These nobleaspirations can set the bar higher for innovation.

“Millennials seek out leadershiproles where they can feel fulfilledand make a constructivedifference in their business – andthe world.”

3. TransparentThe CEO is the human

embodiment of a company’s brand. As the person

responsible for setting the tone, CEOs need to portray

fairness, openness and most of all transparency.

4. Innovative and forward thinking

Pursuing new creative ideas that have the potential to

change the world is the job of themodern CEO. Companies that do not align core values with

innovation and do not develop a winning culture will struggle

in the future.

What is in the DNA of the modern CEO?

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What character traits of CEOs are most admired today?Answers from around the table included:

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“I think people’s expectations are higherthan ever before in terms of what theywant from a CEO. They expect a CEOwho is in-touch with what is going on inthe world, somebody who has an opinionon political matters, who has an interestin changing society.”

“I think CEOs do need to be able torelate to people at all levels. Asuccessful leader is one that canbring the entire business along, notjust the leadership team.”

“If a CEO has credibility then it meansyou bring the business with you. If youare caring it means you are empatheticand human. You can relate to the factthat everybody has different needs andeverybody brings something different tothe table – it’s understanding that.”

The four values of a modern CEOthat were agreed around the table:

2. Flexible and reactive

Tomorrow’s most effective leaders will embrace this new, chaotic world. Planning will be

replaced by intelligent response (not reaction). They will

proactively anticipate the next disruption and prepare

for multiple scenarios.

1. EmpoweringDecisions will not be pushed

from the central command – they will be pulled from the edges of theorganisation especially where teammembers are closest to customers

and, increasingly, working directly inpartnership with them. The most

effective leaders will be those whoembrace this new extreme

empowerment while still effectively managing quality

and risk.

The DNA of the modern CEO

Diversity and themodern CEO

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“CEOs that aim for diverse organisations, nurture environments based on inclusivity,trust, compassion and respect create pathways for advancement and open careeropportunities for all. CEOs of the future understand that diversity can be transformative,driving new ways of thinking and new approaches to solving problems for customersand society.”

It was agreed during the discussion that attitudes towards diversity need to come from thetop and modern CEOs will lead from the front.

Michelle Carson-Williams comments:

How can we encourage women to be CEOs?Among Fortune 500 companies... Women hold just

3%of CEO positions

In the UK, femalemembership of

FTSE-100 company boards recently reached 17%

of board seats

Women hold just

15%A female director around the tablefrom a multinational, firm added:

“To achieve parity forwomen in decision-

making roles, men mustbeware of unconsciousbias. We are making

steady progress but wehave a long way to go inseeing that women are

equally empowered at thehighest decision-makinglevels. I recognise there isno ‘one-size-fits-all’,quick-fix solution but I,and my fellow board

members, get it: equalitymeans business. Or

rather with equity comesequality."

“There is too much focuson the diversity questionssuch as ‘how many womendo we employ?’ rather thanthe issue of inclusion whichraises more challengingquestions. How many

female leaders do I have?How many empowereddecision-makers? Do ourfemale employees feelincluded and engaged? Are we retaining them?”

The DNA of the modern CEO

As technology and a new generation ofworkers influence the business space,leadership is changing.

Modern CEOs understand, adapt andevolve with technology. They understandthe overall, technological landscape andhow it is impacting on businesses andtheir teams.

Can modern CEOs drivegrowth with technology? Managing risk often involves ensuringyour organisation complies with allmanner of regulations – both mandatoryand voluntary codes of conduct – whichoften boil down to people issues:

• Do employees understand their rolesand responsibilities?

• Have they received the right training?

• Are they being measured andcompensated in ways that support riskawareness and compliance?

Many of the skills needed to addressthese issues reside with HRprofessionals.

The subject of risk management was apopular one around the table and the toprisks were identified.

The modern CEO’s commitment to life-long learningand evolving technology

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In a recent survey by Forbes magazine, over 90% of CEOs agreed that IT-ledinnovation is essential for their business growth and that they were willing to devotesubstantial new capital investment to further these aims.

Yet, only half admitted that their organisations were at the forefront of making the bestuse of new technology.

“Leveraging new technologicaladvancements is no longer optional forthose who are seeking to grow theirbusinesses. Soon every area of our life andwork will be embedded with step changes intechnology and CEOs need to be at thecutting edge of each step change.”

Michelle Carson-Williams commented:

One leader sitting at the table expressedconcerns regarding disruptive technology:

“Society is no longer as stable as it used tobe. It’s changing and businesses arechanging because of disruptive technologyso you need to have a CEO that is forward-thinking and who can react quickly to thesechanges.”

“I believe that CEOs and boards do nothave a choice in the matter becausetechnology enablement has becomemission-critical to every company.From the perspective of the CEO andthe board, they do not necessarily needto become technology experts. All theyneed to have is a clear understandingof how advancements in technologycan help their business by redefiningbusiness models, operationalprocesses and, most importantly,customer experience andengagement.”

A CEO from the automotive industry responded:

“There is no hiding. There’sno excuse for a CEO to hideand no reason for them notto communicate. Today’sCEO needs to be atransformational leader thatcommits to a relentlesslearning process, even if thismeans coming out of theircomfort zone.”

The youngest CEO around the tablecommented:

Social media - friend orfoe to the modern CEO?

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Everyone at the roundtable event agreed that all CEOs todayneed to be ‘social-media- savvy’ and as it’s both a friend and afoe to the CEO. Corporate leaders who know how to engagewell on social media, also exhibit other strengths which makethem better leaders.

Take Airbnb and Virgin - both companies with modern-styleCEOs who are very active on social media and claim that theirsocial activities have a knock on-effect on growth.

89% are better at empoweringothers

16% are better at makingdecisions

52% are stronger atcompellingcommunications

46% are moreinfluential

36% are better at cultivatingnetworks

19% are morepassionate forresults

About modern CEOs Tweets Tweets & replies Media

“In the future, ‘social-media-savvy’ may no longer be something that's ‘nice-to-have’ forprospective CEOs. Instead, it could be a powerfulselection criterion that helps companies identifyCEOs who are well-prepared to lead. It may tipthe scales towards more companies choosingwomen CEOs.”

Despite the positive associations between great leadershipand an active social media presence, today's CEOs aretentative about social media.

Views around the table included:

Views around the tableMay 11, 2017

“More CEOs have made the leap tocommunicating online to help shape their brandsdigitally and personalise the company. However,we are now at a point where CEOs need to trulyembrace social engagement and move it up thenext level."

Views around the tableMay 11, 2017

Conclusion What is in the DNA of the future?

The DNA of the modern CEO 9

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