The 7 questions you should ask before you start as the CEO

Nobody feels the pressure more acutely than a chief executive starting a new role. As you progress your career, the more responsibility you have you seemingly have less time to assimilate into each new role.

In meeting with a CEO of an iconic Australian company last week to acknowledge their first 12 months in the role I was reminded of the importance of planning and preparation as you make this critical transition. However, to be fair in their case no manner of planning would have prepared them for virtual onboarding during a lockdown, unplanned changes to the executive team, and of course significantly impacted revenues bought about by the pandemic.

Preparing for your CEO or indeed any executive transition, in a world where the only certainty is uncertainty, it is perhaps more crucial than ever before that you use the early days wisely to set you and your organisation up for future success.

According to a study last year by the Harvard Business Review, 80 percent of new chief executives cited a poor grasp of how their new organisation works as a stumbling block for their effective onboarding. It stymied performance, slowed progress, and in the most extreme cases contributed to their failure and a premature departure from the role

Here are seven questions any new executive should ask, which could help you create the conditions for long-term performance.

1. What planning can I do before the first day?

Start your “Preboarding” as soon as practical – by starting the onboarding process early, as soon as the contract is signed you are mentally preparing yourself for your new challenge.

Do your homework; I’d recommend you review company, industry, and competitor press, financials, and marketing materials. Seek previous board and management reports so that you can hit the ground running on day one.

Determine what questions to ask key stakeholders and plan for meetings with your key employees as soon as possible.

The best executives I’ve worked with are already ahead of the curve. Prior to commencing in the role, they have taken the time to meet with board members, selected senior management, clients, suppliers, analysts, trusted confidantes, and investors. They are laying the groundwork for strong relationships with their key stakeholders and future colleagues and gather valuable input.

Then, construct your first 100-day plan. Once you start your new job, the rush of information and activities will make it difficult to think and plan. Assess your own knowledge, skill, or experience gaps. Determine what functional expertise or specialised training you will need to succeed in the new job. Prepare family and your personal support base for the intense ride ahead. Minimize personal disruptions within your control; create the ability to immerse yourself in your new role in the first 100 days. The best transitions are achieved when total immersion is achieved.

During your first two weeks on the job, revisit your 100-day plan, and share it with your team, so they know where you are going to be spending your time. In each of your one-to-ones, bring this back to reference and discuss progress and/or impediments.

2. How can I align with stakeholder expectations?

Make sure you find common ground about your key objectives – both during the hiring process and throughout your early days in the seat.

Where practical, introduce yourself to the key executives and the management team. It is likely that many of your new colleagues and employees will be wondering, “Is my new boss going to be good or bad new for me?”

I recall several years ago one unprepared new CEO who embarking on their roadshow fell at the first hurdle. At a town hall meeting, they repeated the comments from the Chair at the AGM that “we all need to understand how we can make a difference” - of course, one of the audience asked the new chief what they stood for, “what is your value proposition, Garry?” After what seemed like an eternity of handwringing and stammering the CEO turned to his assistant and said that they would need to get back to us with an answer.

I remember speaking to peers in the audience that day, and despite the many good intentions, a large group was lost that day. However, it was repeated failures to articulate a clear purpose in the days and weeks after which led to the almost inevitable failure with the CEO replaced inside of their first year.

Be prepared for the inevitable “getting to know you questions,” I often advise executives to have responses for: 

• Who are you? And what do you stand for?

• What’s your background? And how did you get to where you are?

• Why did you join? And what do you want to achieve?

Use this opportunity to communicate your leadership philosophy, professional background, operating principles and expectations.

One such CEO we are working with used their first 30 days to build trust and report with both direct and next level down leaders to great effect. They used their early management meetings to do more than meet and greet; they set the tone for weeks to follow.

By asking lots of questions. They presented an open, humble and engaging style - which is authentic to who they are - they showed they are listening.

They are “receiver” as much as a “broadcaster” — they were there to listen and learn.

Don’t be a know-it-all. You cannot have all the answers on day one or throughout the first 100 days. Begin developing your agenda by sharing what you have learned through memos, presentations and social media.

You are likely to have at least 4 key stakeholder groups – the board, the executive leadership team, your external customers or suppliers, and the employees of the company. Develop a thoughtful plan to devote meaningful time to get to know all of them.

3. What does my new team look like?

Establishing a strong team is the best first step a new leader can take toward implementing and executing their strategic agenda. Build a team of people with similar values and passions, but with complementary skills. The composition of the team should match the company’s challenges, enable you to do your best, and reflect the values and standards that you want to prevail throughout the enterprise.

Unless your new organisation is in utter crisis, avoid making critical personnel moves immediately. Recognise that people have enormous capacity if you give them a chance; set clear expectations and hold them accountable.

You will need someone trustworthy, discreet, and with judgment with whom to brainstorm.

Recognise the power of your predecessor; acknowledge and, in some cases, embrace their contribution. In many cases, it is unwise to denounce your predecessors’ contribution or blame them for the challenges you’ve inherited, doing so will likely create unnecessary ill will and it rarely ends well.

4. What is my agenda?

Your strategic agenda should be a joint effort with your team. Resist the temptation to do too much work on this prior to you starting as chief executive.

 Find the right balance between creating a compelling picture of where you want the organisation to go and not becoming prematurely locked into a plan.

Limit the number of themes and priorities so they can be easily remembered by everyone in the organisation. Diagnose the company’s problems starting with the customer perspective and continuing with a grounded view of what the company stands for.

A strategic agenda is by definition a work in progress; use it to help you and the organisation make decisions, see how they work, and make adjustments as needed. Expect pushback on your agenda but, rather than resist, embrace any input in a positive way to maximise future buy-in. Secure some early wins. Look for flaws in the plan and fix them quickly to establish your credibility as the new leader.

 5. How do I transition the culture?

Firstly, revisit your plan on how you’ll get to know the organisation and your people. Identify how “things work around here.” Work to understand the culture of the new organisation and diagnose how great of a change is required.

Many new leaders fail because they cannot make headway against an intransigent culture, pushing too hard in the wrong ways. Go on the hunt for the knowledge networks, key influencers, decision-making protocols, and the unwritten and unspoken conventions that are the nervous system of any organisation.

Create the conditions for cultural transformation: adapt measures of success; set new expectations; create new operating processes; empower change leaders; and lead by example. Be sensitive to the fact that even when you have a change mandate from your board, it may not be enough. Understand where other sources of power lie.

With a truly obstinate culture, you may need to make structural and people changes, but do so with the bought-in support of the key power centre and establish a concerted program to address the cultural legacies of the organisation. Make your first moves count. In your early days, people are the most open about change, but remember that too much change can break the culture –

so pace yourself, continually assess the tolerance of the organisation, get feedback and adapt along the way.

6: How will I build an effective relationship with the Chair or Minister?

Seek to understand the stated and unstated motivations of your Chair or Minister. It’s not just about building shareholder value, it’s also about their reputations and schedules.

Initiate an “onboarding” process with your new chair, similar to what can be done with new managers. Establish priorities with them, determine the most critical issues and what he/she is and the board are looking for. Establish your credibility by having a sound strategic agenda, being on top of the details of the business and by establishing an effective communications protocol.

7. How will I communicate? What is the best approach?

Build trust. Really listen to people at all levels of the organisation and show them you care in your own authentic way. Your role is to truly care about their experience in the company. This will help you build relationships, which leads to trust.

Know your audience so you can tailor your message and your style to their readiness and to what they care about. Tell stories to establish an emotional connection to your point; be concise.

In the early days, every move you make is being closely watched – both explicit messages and implicit signals will have an impact. Use and re-use your communications in various forums and formats. This will reinforce your message and maximize your time. Know the communications settings that you are most comfortable in and play to your natural strengths. Communicating is intimately intertwined with corporate culture; the way you present your message will affect the culture.

The pandemic has shown, that in a crisis, you need to get the information out as quickly as possible. Acknowledge the challenges of the situation to establish credibility; act as a “shock-absorber” between uncertainty and employees’ desire for stability.

New chief executives, can often be perceived as a “fixer.” That pressure can put you in a place where you’re constantly reacting, derailing your long-term strategy. As you consider the advice above, be sure to take time to reflect on your best path forward. That space will allow you to process all the internal and external drivers thoughtfully and formulate a tailored plan that best meets the needs of your teams and the wider organsiation.