Title: The CEO Next Door: The 4 Behaviors that Transform Ordinary People into World-Class Leaders

Authors: Elena L. Botelho and Kim R. Powell

Category: Succession Planning

Summary:

Introduction:
“The CEO Next Door” by Elena L. Botelho and Kim R. Powell is a meticulously researched book that busts many myths about what it takes to be a successful CEO. Based on data from a decade-long study of over 2,600 leaders, the authors outline four key behaviors that significantly increase the chances of an individual ascending to and thriving in a CEO role. The book emphasizes that you don’t have to be a superstar to become an outstanding leader; rather, certain behaviors can be adopted and cultivated by almost anyone.

1. Decisiveness:

Key Point:
Decisiveness is the ability to make decisions quickly and effectively, even with incomplete information. It is a critical behavior for leaders because it drives momentum and direction within organizations.

Concrete Examples:
In the book, the authors discuss the story of Jim Skinner, who took the reins at McDonald’s when the company was struggling. Skinner made quick, decisive moves to revamp the menu and streamline operations, which helped in turning around the company’s fortunes.

Specific Action:
Action Step: Practice making small, quick decisions in your daily life. For instance, limit your time spent on determining minor choices such as which restaurant to dine at or what project task to tackle next. This helps in training your brain to get comfortable with making quicker, more effective decisions.

2. Reliability:

Key Point:
Being reliable means consistently delivering what you promise and ensuring that your efforts align with the strategic objectives of the organization. It’s about building trust through dependability.

Concrete Examples:
The authors share insights into the leadership journey of Margo Georgiadis, the CEO of Ancestry.com. Her reliability and consistent performance were pivotal in her career advancement. Her track record of delivering results made her a trusted leader and an ideal candidate for the top executive role.

Specific Action:
Action Step: Create a checklist for your tasks and set deadlines. Follow through by regularly updating the status of your projects. This consistent demonstration of reliability will build your reputation as a dependable leader.

3. Adaptability:

Key Point:
Adaptability is the ability to adjust and thrive in changing circumstances. Modern leaders must be able to pivot strategies proactively to align with shifting market dynamics.

Concrete Examples:
In the book, there’s an example of Greg Brenneman, who led major turnarounds in companies like Continental Airlines and Burger King. Brenneman’s success is attributed largely to his adaptability in the face of diverse business challenges and industries.

Specific Action:
Action Step: Challenge yourself by seeking out new experiences that push you out of your comfort zone. This could involve taking on a new role, learning a new skill, or initiating changes in your daily work processes to foster growth and adaptability.

4. Engaging for Impact:

Key Point:
Engaging for impact is about effectively communicating and inspiring others to buy into your vision and work towards common goals. A successful CEO must be able to marshal the collective talents of the team to achieve organizational objectives.

Concrete Examples:
The authors highlight the leadership of Jeff Bezos at Amazon. Bezos’s ability to articulate a clear, compelling vision of Amazon’s future has been instrumental in its meteoric growth. His knack for engaging employees and stakeholders through effective communication has kept the company innovative and customer-focused.

Specific Action:
Action Step: Practice active listening in meetings and conversations. Seek to understand before being understood. Follow up by clearly communicating your vision in a way that resonates with your team, ensuring their buy-in and collaborative effort.

Myths Debunked:

The book also tackles several prevalent myths about leadership and what it means to be a CEO:

Myth 1: CEOs Are Born, Not Made
Example:
The authors refute this myth by showing how many successful CEOs did not start with Ivy League degrees or stellar resumes. For example, Alan Mulally, former CEO of Ford, started in a humble background and worked his way up through persistence and learning.

Action Step:
Focus on continuous learning and development, rather than being deterred by your starting point. Regularly seek feedback and invest in skill-building opportunities.

Myth 2: To Become a CEO, One Must Have a Charm and Charisma
Example:
Data reveals that introverts are just as capable of ascending to and excelling in CEO roles. The book shares the journey of Bill McDermott, CEO of SAP, who is known more for his substance than his style.

Action Step:
Develop your unique strengths rather than trying to emulate someone else’s style. Authenticity and proficiency in your domain can carry you far.

Myth 3: CEOs Must Have a Perfect Track Record
Example:
The authors provide evidence that many successful CEOs have experienced significant failures. They include the story of Howard Schultz, who had several setbacks before successfully building Starbucks.

Action Step:
Embrace failures as learning opportunities. Conduct after-action reviews to understand what went wrong, and use those insights to improve your strategies moving forward.

Career Catapults:
The book also discusses the concept of “career catapults.” These are opportunities or assignments that can escalate your career trajectory when approached with the right mindset and actions.

Example:
Carla Harris, a senior executive at Morgan Stanley, often tackled projects that no one else wanted. These high-stakes assignments showcased her competence and led to rapid promotion.

Action Step:
Voluntarily take on challenging and high-visibility projects. Assess the potential risks but recognize that these opportunities can significantly accelerate your career advancement.

Board Management:
Managing relationships with the board of directors is another crucial aspect discussed in the book.

Example:
Jeff Immelt’s tenure at GE highlights how crucial board relations are. His transparent communication style helped him maintain the board’s trust during turbulent times.

Action Step:
Schedule regular updates with board members, even when things are going smoothly. Transparency and proactive communication can consolidate their support during challenging times.

Conclusion:
“The CEO Next Door” offers invaluable insights and practical advice for anyone aspiring to step into a leadership role. The four behaviors—decisiveness, reliability, adaptability, and engaging for impact—are not inherent traits but skills that can be developed and honed. The book demystifies the path to leadership, showing that with the right mindset and actions, almost anyone can rise to become the CEO next door.

By following the action steps derived from the key points and examples in “The CEO Next Door,” aspiring leaders can systematically work towards developing the behaviors that will boost their chances of success in high-stakes, leadership roles.