We pulled a list of the top CEOs from our CEORater platform as measured by our “CRScore”. The CRScore is a crowdsourced score based upon user reviews at CEORater.com. CEOs are scored on a scale of 0-100, 100 being the best.
Users “review” CEOs by posting comments, allocating a Thumbs Up or Down, and by allocating any number of our 42 pre-defined attributes that score CEOs across Four Management Categories: 1.) Operations-Related 2.) Strategy & Tactics 3.) Investor-Related and 4.) Personality-Related. CEOs were required to have a CRScore of 80 or greater in order to qualify for this list.
The three Leadership qualities that matter most (CEO or otherwise): 1.) Have a Point-of-View: It is essential to have a point-of-view. Right or wrong time will tell. For example, if a Board of Directors is looking to fill a CEO role, a CEO candidate ought to have a point-of-view in terms of a broad strategy…
Opportunity Cost for Active Managers Is High Institutional investors typically contemplate opportunity cost within the context of portfolio returns, individual stock returns and ROIC. What however is the opportunity cost associated with pursuing a broken business model versus correcting course? The capital markets are filled with smart people and smart machines. It is more difficult than ever…
Every founder CEO begins as a “creator”. Not every founder CEO graduates from “creator” to “builder”. Creators eventually self-implode (Elon Musk, Tesla and Travis Kalanick, Uber) whereas other founders are able to scale over the long-term. For example, Microsoft founder Bill Gates and Amazon’s Jeff Bezos are builders (We provide a list of Builder CEOs…
Successful CEOs possess each of the attributes described below. This is an unscientific analysis based upon my prior experience covering and acquiring companies (equity research analyst; M&A executive) as well as my current role as founder of CEORater.
It is important to recognize that while these attributes are qualitative in nature they do impact the bottom-line.
1.) Communication:
Effective communication is the most important attribute for CEOs to embody. Our lead photo is that of Steve Jobs, the Great Communicator.
Great CEOs are great communicators: Great CEOs communicate effectively to shareholders, customers and most importantly – employees!
Get your reps in: Jack Welch used to say that when he got sick of hearing himself repeat a particular message he knew that message was starting to take root with employees. Rocky Marciano knew the best way to maintain his edge on fight night was hard sparring during training camp.
Coach the coaches: Want a force multiplier effect in your organization? Coach your direct reports.
2.) Accountability:
Great CEOs hold themselves and direct reports (and by proxy all employees) accountable. Do not confuse accountability with intolerance for it is important to encourage smart risk.
Don’t shoot to kill: Sales person misses sales target. OK fine, no variable compensation reward for the period. What behavior will change as a result?
Is there a communication breakdown in the sales process?
Where is the pipeline weak?
How are we engaging with customers and subsequently ingesting and disseminating that sales intelligence? Is that information circulated not only across the Sales organization but with Product Management?
If behavior changes for the better – i.e. improved communication – the miss may have been worth it.
3.) Employees First:
The tried and true principle of taking care of your own first. In return employees will take care of customers. The benefits trickle down to shareholders.
Don’t confuse “taking care” of employees with free lunch, coffee bars and foosball tables. Those trivial items may help at the margin, but at the end of the day employees want to be recognized and rewarded for successful missions – both large and small.
4.) Intellectual Curiosity:
Intellectual Curiosity is an attribute we have paid increasing attention to as of late as we began our CEO Personality Analytics effort this May (“Personality Analytics: Technology CEOs Analyzed“)
Our experience is that intellectually curious CEOs are never satisfied (that’s not to say they are perpetually dissatisfied). They are relentless about “what comes next?” and “what aren’t we doing that we ought to be?”
Intellectually curious CEOs are more likely to solicit feedback from direct reports.
They are motivated to find the truth, not to have their opinions validated.
Intellectually curious CEOs are more likely to consider and deploy creative strategies and tacticsto deliver customer value.
They view obstacles as opportunities rather than impediments.
Intellectually curious CEOs create “adaptable” cultures capable of flexing their business model as customer dynamics and competitive landscapes change.
5.) Long-Term-Oriented:
We consider long-term to mean 10 years or more. Similar to the “time value of money” principle where investment decisions made today can have an enormous impact in the out years, capital allocation decisions made today can impact a given company’s competitive positioning and operations in significant and unimaginable ways 10-20 years in the future.
Amazon (AMZN): As recently as a few short years ago analysts beat up Amazon for re-investing profits when AMZN appeared to be close to achieving operating profit break-even. Those investments made over a 24-year period (primarily in physical distribution) have paid off handsomely, enabling Amazon to offer same-day delivery service for a mind-boggling number of products. A competitive “moat” if I’ve ever seen one.
SS&C Technologies (SSNC): Founder, CEO Bill Stone and his team have taken a measured, strategic approach over the years to augmenting the “core” business with a series of reasonably valued strategic acquisitions. This strategic approach has enabled the company to build the deepest and broadest product and services portfolio across the financial services industry in non-discretionary product areas such as portfolio accounting. Early in the company’s life-cycle certain acquisitions may have seemed somewhat inconsequential. However, 30-plus years and $13 Billion of market cap later the company is the leading Financial Technology provider with solutions that address back, middle and front office workflows across the Financial Services industry.
6.) Trustworthy:
No love without trust. One could also use the word “transparent” to describe a CEO that exhibits consistent behavior whether engaging with a senior executive, a front-line staffer or a customer. We opted for the word “trustworthy” because at the end of the day employees typically describe their CEO as someone they “trust” or don’t trust.
Why is it important for CEOs to be trustworthy? If employees don’t believe you “have their back” – they are less likely to break theirs – for you or for the company.
To Centralize is to Oppress This article focuses on centralized business models and why they don’t work. Ben is our anti-hero who learns this lesson the hard way. We Detest Centralized Business Models for Several Reasons: 1.) The centralized model assumes that corporate headquarters knows best. Could there be a more arrogant assumption? For any…
For the Lamborghini Countach – the successor to the revolutionary Miura (our header image) – Ferruccio Lamborghini chose three of Lamborghini’s best and brightest. Then he did something revolutionary – he left them alone.
early model Lamborghini Countach
Openness and Adaptability
Elements of Lamborghini’s leadership style – openness and creativity – are congruent with our recent CEO personality research, particularly as it relates to dynamic, fluid segments of the technology industry (think Artificial Intelligence and Autonomous Driving) where creative approaches to problem-solving and adaptability are key success factors.
The Wall Street Journal recently published an article detailing the process by which Lamborghini brought the Countach to life. To access the article as it appeared in the WSJ CLICK HERE
Our recent CEORater Podcast on the subject is below.
Even more on the Miura (we all have favorites) courtesy of Petrolicious – “The Lamborghini Miura Is Still Untamed”
Ferruccio Lamborghini
Ferruccio Lamborghini
Ferruccio Lamborghini with his tractor, Countach (L) and Miura (R).
Often the best advice one could give an entrepreneur is to “just do it“. “It” could be an idea/project/NewCo or it could be a discreet task. As entrepreneurs our business is our baby. As such, we want perfection. Perfection – while a noble aspiration – is not practical. Entrepreneurs must take action with imperfect information and limited data points – particularly if that which we are creating is paradigm-shifting. People won’t “get it” initially. Thus, it’s critical to get “it” out there. Let people use it, poke it, try to break it, have fun with it. The entrepreneur and team may then collect feedback, refine “it” and repeat the cycle (i.e. the feedback Loop) continuously. In my experience I’ve found that when I’m physically moving (left foot, right foot, walk, jog, run) I’m most creative. Ideas for new opportunities, creative solutions and everything in between rush through my temporal lobe like San Francisco 49ers fans rushing for the exits. Below is a link to a recent CEORater Podcast that took place this summer with fellow entrepreneur Greg Walls of PE28. Enjoy: CEORater Podcast Ep. 21 Movement & The Entrepreneur
For those whom don’t know, the photo is of late/great Intel early employee (technically not a co-founder) and former CEO Andy Grove.
What is the most important factor in identifying companies that will be successful over time? Answer: the senior leadership team.
Quality leaders should be offended when they are referred to as “managers”. Effective senior leadership teams don’t “manage” – they “lead”.
Quality senior leadership teams have a greater influence on a given company’s success (however you want to define it) than any other one variable.
End market you say? Quality teams will capitalize on strong end-markets and have the courage to exit weak end-markets even when it may be politically difficult to do so.
Quality teams set the culture. Quality teams insist on hiring quality people and won’t sacrifice quality to satisfy a growth expectation.
Quality teams will push back on board members who have overly aggressive growth expectations that may jeopardize the company’s foundational core.
Quality leadership teams will pursue new, exciting product initiatives that have promise – even when data points and milestones are few during the early days of that product’s life cycle. Even when doing so may mean cannibalizing the core and pissing off investors.
