The Seven Surprises for New CEOswere described first in the HBR of October 2004 in an article by Michael Porter, Jay Lorsch and Nitin Nohria on CEO leadership.
As a newly minted CEO, one may think to finally have the power to set strategy, the authority to make things happen, and full access to the finer points of your business. But if one expects the job to be as simple as that, you’re in for an awakening. Even though you bear full responsibility for your company’s well-being, you are a few steps removed from many of the factors that drive results. You have more power than anybody else in the corporation, but you need to use it with extreme caution. Porter have discovered that nothing—not even running a large business within the company—fully prepares a person to be the chief executive. The following seven surprises are most common for new CEOs:
1. You can’t run the company (The sheer volume and intensity of external demands take many by surprise. Almost every new CEO struggles to manage the time drain of attending to shareholders, analysts, board members, industry groups, politicians, and other constituencies)
2. Giving orders is very costly (No proposal should reach the CEO for final approval unless he can ratify it with enthusiasm. Before then, everyone involved with the matter should have raised and resolved any potential deal breakers, bringing the CEO into the discussion only at strategically significant moments to obtain feedback and support)
3. It is hard to know what is really going on (Certainly, CEOs are flooded with information, but reliable information is surprisingly scarce. All information coming to the top is filtered, sometimes with good intentions, sometimes with not such good intentions)
4. You are always sending a message (A CEOs words and deeds, however small or off-the-cuff, are instantly spread and amplified, scrutinized, interpreted and sometimes drastically misinterpreted)
5. You are not the boss (Although the CEO may sit at the top of the management hierarchy, he still reports to the board of directors. At the end of the day, the board—not the CEO—is in charge)
6. Pleasing shareholders is not the goal(CEOs must recognize that, ultimately, it is only long-term value creation that matters, not today’s growth expectations or even the stock price)
7. You are still only human (CEO should recognize he needs connections to the world outside his organization, at home and in the community, to avoid being consumed by his corporate live)
These seven surprises for new CEOs carry some important lessons:
· First, as a new CEO you must learn to manage organizational context rather than focus on daily operations. Second, you must recognize that your position does not confer the right to lead, nor does it guarantee the loyalty of the organization. Finally, you must remember that you are subject to a host of limitations, even though others might treat you as omnipotent.
Ex.5 Jobs & related adjectives
An 'absorbing' job is one that is very interesting and claims all your attention.
My job is so absorbing that I sometimes forget to have lunch.
I get bored in my job. I need one that is much more absorbing.
A 'badly-paid' job is one where you receive less income than the average.
The hotel industry has a lot of badly-paid jobs.
My salary may sound high in absolute terms but I am comparatively badly-paid for the job I do.
A 'boring' job is dull and without interest.
I think that being an accountant would be a really boring job.
Would you stay in a boring job if you were really well paid?
A 'casual' job is one which is not regular or fixed.
We offer a lot of casual jobs during the Christmas rush.
The unions want us to have fewer casual jobs and more permanent employees.
A 'challenging' job is one that is very difficult and tests a person's ability.
It is a very challenging job and we need to find somebody who is tough mentally.
I don't find my job very challenging any more and I need a fresh challenge.
