What Makes Great CEOs?

The CEO, or chief executive officer, is one of a company’s senior executives who is primarily responsible for the company’s success or failure. They are charged with the job of properly managing corporate operations and, ideally, guiding the company toward development. Successful CEOs distinguish themselves from their peers in a variety of ways, exhibiting specific attributes that set them apart. This operating body is responsible for a company’s strategy, decision-making, day-to-day operations, and external representation. However, the debate remains over whether great CEOs are born with their special skill set or if they develop it following a well-defined process. As a result, this Chicago Booth Review Podcast episode focuses on the characteristics that distinguish great CEOs.

The episode claims that CEOs separate themselves from a chief financial officer, a chief operational officer, and employees in the divisions based on four key factors: talent, execution, charm, and innovative strategic abilities. CEOs are more competent, more execution-oriented, more charismatic, and more innovative and strategic than others. The episode also implies that a CEO or someone deserving of becoming a CEO must have great leadership talents. Great CEOs have the ability to establish a vision that people can buy into as well as proper leadership qualities. According to the episode, while there are different kinds of CEOs, there are also multiple settings within which CEOs function, and the best ones can pivot between those depending on the circumstance their firm is in. The episode also emphasizes that not all excellent leaders go on to become great CEOs. The only distinction is that exceptional leaders must contribute to results. If great leaders are unable to sustain their influence, they have not successfully transitioned. Finally, the episode underlines how great CEOs demonstrate that diversity is valued in the firm in a changing economy. The culture of a business is one of the factors that CEOs must examine. Great CEOs must embrace diversity and promote, recognize, and celebrate it in order to create a more diverse pool of candidates and have a significant effect.

The CEO is one of the organization’s key operating entities. The aforementioned are some of the most important factors in developing great CEOs.