How to be a better CEO

What’s More Important for a CEO Self-Awareness or An MBA?

The fault, dear Brutus, is not in our stars but in ourselves.” — William Shakespeare, Julius Caesar

Since the 1950s, the gold standard for a CEO — an exceptional technical capability, an impressive MBA education, and a proven track record. However, several high-profile studies have evaluated the long-term effectiveness of CEOs with MBAs versus CEOs without one. CEOs with MBA training do not outperform their counterparts. In fact, they often underperform because their approach to leadership can be too narrowly focused.

About 40 percent of CEOs have an MBA degree. The large-scale studies found that leadership based solely on MBA-trained logic is not always enough for delivering long-term financial and cultural results. Also, it was found to be detrimental to an organization’s productivity. 

In one study, researchers compared the organizational performance of 440 high profile CEOs. The researchers had two groups — those with an MBA and those without one. They then monitored the performance of the companies they led for up to seven years. The performance of companies led by CEOs with an MBA was significantly worse and those without one. 

The Journal of Business Ethics published another study. This study looked at the results of more than 5,000 CEOs and came to a similar conclusion.

To be clear, we are not saying MBAs are not useful in leading an organization. However, if the linear MBA-trained logic becomes the sole focus — at the cost of other skills, like self-awareness and understanding others and the culture — the leadership approach is out of balance.” — Harvard Business Review 

So, what does all this mean?

Well, for starters it means our grandmothers were right when they told us “everything in moderation.” However, more importantly, it validates that as leaders we have a responsibility to our organizations, to the people we lead, and to ourselves to understand who we are and how we lead, which is not the same thing as who we think we are and how we think we lead.” - Lori Dyne, Optimum Talent

As a successful CEO for over 25 years, with an MBA, and in seven organizations in three sectors I can relate to the challenges of the CEOs in the above studies.

I think that Brendon Burchard, performance coach and author, capture the problem in his book High-Performance Habits How Extraordinary People Become That Way. He sets out three “High-Performance Killers.” He does not address specifically address CEO with MBAs. However, he deals with how high performers can be their own worst enemy. It boils down to a lack of self-awareness.

While the impacts of falling into the performance-killing traps apply equally to those with MBA and those who do not have this degree, my experience suggests that MBAs have a higher chance of falling into these traps. The expectations for an employee with stellar credentials is very high. The organization may also place them on a pedestal. It is effortless for the individual to start believing their press clippings. They slip into the traps.  

When you find yourself in a hole, stop digging.” — First Law of Holes

The first law of self-awareness is to recognize when you are in a hole. You need to have systemic self-reflection to identify if you are there.

Weekly reflection can help you from falling into these holes — or get out of them before the hole becomes too deep.

Superiority Trap

There are two kinds of pride, both good and bad. 'Good pride' represents our dignity and self-respect. 'Bad pride' is the deadly sin of superiority that reeks of conceit and arrogance.” — John C. Maxwell

Weekly Reflection 

• Think of a situation where you were overly critical or dismissive of others. 
• Reimagine the situation from a humbler and an appreciative view.

Dissatisfaction Trap

Be satisfied with success in even the smallest matter and think that even such a result is no trifle.” — Marcus Aurelius

Weekly Reflection 

• Think of the area of work you feel consistently dissatisfied with.
• Identify some goods things in the area.
• Identify a trigger to get you to notice the goods things to move forward.
• What behaviours do you need to inspire a person, who sees you as dissatisfied in this area, to believe that you can succeed?

Neglect Trap

If things are not going well with you, begin your effort at correcting the situation by carefully examining the service you are rendering, and especially the spirit in which you are rendering it.” — Roger Babson

Weekly Reflection 

• Think of an area where down the road you will regret neglecting someone or something.
• Think of an area that you are overcommitted.
• Adjust the balance of your efforts in these areas as the problem may bite you much hard that the success can lift you.

Developing self-awareness involves moving past your ego and unconscious bias. For some executives, it means working with a coach to facilitate greater behavioral awareness, challenge your old patterns and instill an approach to develop greater self-awareness.

Greater self-awareness leads to:

• Improving your ability to listen and connect with both the people you lead and the people you are accountable to
• Enhancing your ability to influence, align, motivate, and engage
• Navigating the difficult conversations that are necessary for progress
• Knowing when to utilize your strengths and when to delegate
• Relying more on evidence-based decisions that are less clouded by bias and a gut-feel

All organizations exist to increase shareholder value. Creating value comes in many forms such as manufacturing and selling widgets, providing professional expertise, or creating social change. There are two necessary conditions to creating shareholder value: satisfied customers and engaged employees. So, creating shareholder value is far more likely when the person at the helm understands how their peers, employees, and clients experience them.

As a CEO, I did not want to invest in coaching. I wanted to invest in results. My coaching methods focus on the business and the leader at the same time. It impacts people profoundly, creating an enduring awareness of their talent stack and often unrecognized skills which fuel both their personal and professional life. For the organization to be successful, the leader must be successful. I always viewed my performance and that of the organization as being one of the same.

Executives need more than personal coaching; they need strategies that will create shareholder value, satisfy customers and engage their employees. Through our processes, we guide executives on a journey of self-discovery and powerful action planning to leverage strengths and address development gaps. We are adept at helping executive align their goals and people capabilities to drive sustained bottom-line performance and employee success.