The characteristics of a successful CEO include foresight for future planning, adaptability to changing circumstances, reliability to maintain trust, teamwork for effective decision-making, and decency to build strong relationships. These traits enable CEOs to steer their companies effectively and inspire their teams.
If you were to narrow down the ideal qualities of a CEO what would you choose to include? Conversely, qualities of a good CEO include someone who’s capable of juggling several critical duties and also remain trusted and respected decision-makers by their colleagues and employees. To do this, and sustain it, one need to possess or build those less-than-tangible characteristics to be a effective CEO.
Importance of effective CEO traits
We all know, there are many responsibilities a CEO has, but even if they are good at their job, there are certain traits they must possess to be as great of a success as they can. As a CEO, it’s important to manage a workplace where employees enjoy work, are passionate about the company and show an interest in growing in their role. A CEO sets the tone for how the organization runs, and the qualities they develop can greatly affect the company’s success.
Though, CEOs do tend to be have their own strength and weaknesses, like most of them are strong in decision-making and the financial elements of their jobs, but weak when it comes to managing their people and developing talent. CEOs should horn those leadership qualities to make themselves successful.
CEOs must communicate with their employees using concise, easy-to-understand language, and they need to know how to foster collaboration and open-mindedness among their subordinates to grow the business.
Characteristics of a successful CEO
If one intends to become a good CEO, or if you’re trying be successful at your job as the first in command, develop these important leadership qualities or characteristics.
Planner
One important CEO traits is foresightedness, which means having critical thinking when it comes to future planning and possibilities. It’s a CEO characteristic that’s useful when one is dealing with a lot of money, investors and business activities and also responsible for steering the company in the right direction. Having the ability to forecast what could happen in a few months or even years from now, and prepare for the possible outcomes, is one of the most invaluable qualities of a good CEO.
Lead from front
Leading your people from front is in addition to CEO leadership qualities. You might have other managers at your company, but it’s important that the CEO leads their people. This comes in many different forms, but one example is giving your managers and employees some level of direction.
Financial acumen
Successful CEOs do not have to be accountants, necessarily, but they should have a good grasp of financial principles, be able to translate those principles into business results, and understand how to create real value to the business. They should be able to understand and explain key performance indicators and EBITDA, even if someone else does the math behind those numbers.
Decision maker
While important or weighty decisions can definitely benefit from a waiting period or additional input, look for candidates who have a track record of being willing not only to make a decision, but also willing to defend it and own the mistake if it’s the wrong decision.
Active communicator
In some sense, this may be the most important dimension of any leader, but especially of a CEO. Communication is the lifeblood of any organization, and when senior leaders are removed, distant, or secretive, no organization can thrive. A quality CEO candidate will not only communicate frequently with anyone in the organization, but will also encourage other senior leaders to do the same, creating a culture of openness.
Reliability
Any good employee, no matter their rank, needs to be reliable. But, we’re all human: we may promise something we can’t deliver, or make the wrong decision in a critical matter. The problem is, when CEOs exhibit these behaviors, even rarely, they risk losing the trust of important people. That’s why a CEO should strive to be reliable all the time. It’s one of the most important qualities of a CEO.
Teamwork
Most CEOs know how important it is to consult with your C-suite team and even your lower-level employees. This is one of the qualities of a CEO that involves active listening, posing the right questions and asking for feedback, and often also delegating work to your colleagues.
Respectability
Respectability is a trait that can greatly help you be a better CEO. A significant part of a CEO’s job is relationship-building; with shareholders, investors, employees, and the public. It’ll be much easier for others to trust you enough to understand your vision and help you realize it, if you show genuine respect and care toward them.
And that, of course, doesn’t only mean being a good person. It’s about showing compassion and understanding, and also being alert for how different factors impact your employees or the public.
In a nutshell, traits of a successful CEO include sociability, teamwork, learning new things, creativity, time management skills, erudition, and strong communication skills. The above CEO characteristics or traits will aid for future senior leadership positions. Focusing on the leadership pipeline now will help create organizational stability, business continuity, and long-term growth. Always remember that the best CEOs are the ones people want to work with. To find the most talented employees a CEO will need these skills for themselves and everyone in their team.
