Talented CEOs can lead your company into success, especially for difficult tasks and decisions in the future. The success or failure of these executives may impact the profit and revenue of the company. Plus, its morale and values.
But then, chances are new CEOs usually leave the organization within a year or so. Here are some of the biggest reasons why.
3 Biggest Mistakes of New CEOS
Here is a list of reasons why more and more executives leave their companies:
#1: Undervaluing Institutional Knowledge
When senior leaders get in a company, they may get too pressured to create positive changes and make a mark in the company as soon as possible. But, a lot of investors and private company owners nowadays are quick to hire new CEOs without knowing their capacities. They are too quick to act to hire these new executives without knowing their talents and values.
To prevent these common mistakes, new CEOs should start by asking themselves, “What should be done?” Instead of asking, “Here’s what I want to act on,” why now do what you have to do? Knowing the feedback from the senior leaders who have years of experience will increase the probability of boosting success.
#2: Making a Culture of Fear
When new CEOS assume power, anxiety may take over employees who are wondering about their security in the company. Granted that they are going through these circumstances, they may start to fire back and leave the company. But, it is also a crucial stage for these new CEOs.
So, if you are one of these new executives and have heard about this delicate scenario, be wise enough and observe the situation properly. Before you ask for your resignation, be sure enough that your actions are right. When new executives know excellence and do not instill fear, then they have better chances of achieving success.
#3: Poor Decisions in Hiring
All efficient executives know how to build the relationship and trust of their employees and they know how to delegate tasks. For new CEOs, the ability to find talented people will make or break their capacity to succeed.
With just less than 5 percent of unemployment rate today, the candidate may become less talented generally. This will make the hiring task even more challenging to get right. So, investing with the most effective hiring process is vital.
In the Nutshell
In today’s ever-growing and changing economy, it is difficult to appoint new CEOs that will succeed and last in the company. By understanding these common mistakes they make, you will lessen or eradicate these risks and increase their possibilities to succeed.