The biggest challenge for CEOs: the human side!

402 CEOs from companies whose headquarters are located in 11 countries around the world and generate total revenues estimated at $2.6 trillion shared their leadership experiences in "The CEO: A Personal Reflection," a study recently conducted by Egon Zehnder.

CEOs under pressure

"The pressure on leaders has rarely been greater: CEOs are aware that they have the necessary skills and experience to fulfill their role. But the complexity in which leadership must unfold today - winning and convincing people, exerting influence, and creating a climate of collaboration and innovation - poses major challenges for even the best leaders," says Kati Najipoor-Schütte, head of Egon Zehnder's global CEO practice group. And she adds: "In our complex and volatile business world, CEOs not only need to master their tools of the trade, but also to continuously develop themselves. The best top managers are constantly on a journey, seeking to understand themselves better and learning incessantly. At the same time, they are leading their organizations through often radical transformations."

Often insufficiently prepared

Clemens Hoegl, Partner at Egon Zehnder Switzerland: "It is particularly striking that only 28 percent of internally recruited CEOs - and 38 percent of those recruited externally - feel well prepared for the role of CEO. This suggests that preparation for the step into the CEO role is still systematically underestimated." Clemens Hoegl continued, "The study shows that the success of an organization depends on the ability of its top boss to successfully manage a variety of short- to long-term priorities. This is only possible if a top manager and CEO can use all the facets of his humanity that he needs for his role. Today, successful leadership depends on this more than ever. A leader who remains humble, is aware of his own vulnerability and is open to feedback, self-awareness and continuous learning has already laid the foundation for the success of his organization. The ability to change oneself is the key to transforming one's organization."

It seems so easy and is so hard

Summarizing the key findings of "The CEO: A Personal Reflection" study, the following emerges: The majority of leaders feel they have the right tools and professional experience to succeed in their role. But certain personal aspects pose a particular challenge. For example, 74 percent of respondents say their prior accomplishments and experience prepared them for the CEO role, yet 47 percent say developing their leadership team was more difficult than expected. Leading through culture change is described by 50 percent of respondents as "more difficult than expected," and for 48 percent, finding time for self-reflection is more difficult than expected. In hindsight, only 32 percent feel well prepared for the CEO role.

Away from pure "managing" to more "leadership"?

According to the study, more and more CEOs are recognizing the importance of soft skills and their own further development. This suggests that the CEOs surveyed are thus moving in the direction of a more reflective and collaborative leadership style: After all, 54 percent of CEOs agree that transitioning into the role requires intense, personal reflection, and 79 percent recognize that they need this ability to change themselves and their business. But when it comes to "Allzumenschlich," the "tough-as-nails manager" still seems to prevail for many: Only 57 percent of CEOs say they openly show emotion. Meanwhile: 78 percent of CEOs say it's okay for them to admit mistakes.

Many CEOs feel that they lacked the necessary support to make the crucial career move. The succession process means focused work in the eyes of some. Above all, CEOs who come from within their own company feel less well prepared compared with outsiders, the study shows:

• 44 percent of CEOs surveyed said their appointment was not part of a planned and formal succession process (external 54 percent, internal 36 percent).
• Only 28 percent of internally selected CEOs feel well prepared (38 percent of those recruited externally).
• 65 percent of respondents said that planning for their own succession was underway. But only 32 percent currently have a clear process underway.
• Only 38 percent of respondents say they turn to their board of directors for honest feedback, and only 28 percent turn to their board or executive colleagues.

The main differences in the Swiss results

The study was conducted worldwide. Accordingly, not all results can be applied across the board to all countries and cultures. There were considerable differences between the international and Swiss responses to the following questions:

• "Building a management team": While 47 percent of international CEOs found it difficult to build a management team in their new role, only 23 percent of Swiss CEOs did.
• "Was your appointment part of a planned and formal succession plan?" In Switzerland, succession planning was part of a planned and formal succession plan for 83 percent of CEOs, while this was the case for just 17 percent abroad.
• "Balancing the short-term financial focus with the long-term transformation of my company." For 37 percent of international CEOs, it was a challenging task, while only 15 percent of domestic CEOs found it challenging.
• "Managing the impact on my family and personal life." Only 35 percent of international CEOs found it difficult to balance personal and family life, while 62 percent of Swiss CEOs saw it as a major challenge.

The last point in particular makes us sit up and take notice. The question therefore arises: Do Swiss CEOs need to work more on their work-life balance?

Source: Egon Zehnder