14 | theceomagazine.com
A LEADERSHIP SAFETY NET
It can be very reassuring for a CEO to know there are
solid leadership skills in the next tier down.
“There are all kinds of reasons why you might have
to step away from the job for a while,” says Helen
Connealy, Leadership Hub Chair of the NonProfit
Alliance (NPA) and an experienced CEO. “You don’t
want to see your plans go awry because no-one else is
capable of implementing them in your absence. You
need a team you can rely on and, if you constantly build
good people internally, that will happen naturally.”
Over the longer term, it can also lay the foundation
for a smooth succession.
“Our American research found that, in the four
years to 2015, 74 per cent of the new CEOs appointed
to S&P 500 companies were promoted from within –
an increase from 63 per cent during the 2004–
period,” says Kevin Jurd, who leads Spencer Stuart’s
Board Practice for Australasia and is actively involved
in the firm’s CEO search and succession planning
initiatives. “Ninety-one per cent of these had no prior
CEO experience. It takes time to develop internal
talent, particularly if this involves gaining experience
in different roles, and CEOs also need to be confident
that the organisation is developing succession-ready
executives for all senior positions. That means they
should be looking well ahead.”
In the meantime, professional development can
help keep the best people in your business.
“Greater focus on quality leadership and ongoing
professional development is crucial to improving
employee engagement and retention,” says Matthew
Cavalier, Managing Director of the Australian Institute
of Management (AIM).
“HAVING MORE HEADS AROUND A PROBLEM MAKES
IT EASIER TO SOLVE, PARTICULARLY WHEN
EVERYONE CAN THINK ABOUT IT FROM BOTH
STRATEGIC AND FINANCIAL STANDPOINTS.”
- TESSA COURT, CEO, INTELLIGENCEBANK
Not all executives have the capacity, or the desire,
to run a company. But, whatever their individual
ambitions, a capable team will support the CEO
so that you can do a better job.
“Having more heads around a problem makes it
easier to solve, particularly when everyone can think
about it from both strategic and financial standpoints,”
says Tessa Court, CEO of IntelligenceBank, a business
process-management software company.
Open and honest communication generates the
greatest value within a business.
“Simply asking the question: ‘What’s your thinking
behind that?’ can have an enormous impact,” says
Simon Smith, CEO and owner of Southern Cross
Coaching & Development. “Well-informed executives
who also understand the CEO’s leadership style are
much better equipped to make sound decisions with
minimal guidance.”
NPA’s Connealy rates emotional intelligence and
empathy high up the list of essential leadership skills.
“It’s a pity they’re so often overlooked,” she says.
“Emotionally intelligent leaders are more likely to work
collaboratively. They can recognise and manage their
own emotions at times of stress so they’re less likely to
act impulsively, and they’re also better able to deal with
emotionally charged situations. Not-for-profit (NFP)
organisations are often accused of leading from the
heart rather than the mind but I see that as a strength
rather than a weakness. I think that organisations inside
and outside the NFP sector should work constantly
to help our leaders develop these abilities.”ENABLING BETTER
DECISION MAKING