7 Essential Competencies of a CEO
As investor, we work closely with founder-CEO’s as well as CEO’s who joined the company in a later stage. In each case, finding the right person for the job is not just a challenge, but crucial for the company too.
Let me share our view on the competencies that are needed to lead a tech company:
Domain Expertise: Today’s CEOs need to know their market, network and eco-system because of complexity, short ramp-ups and higher expectations. Preferably, the CEO is able to translate his domain knowledge into a clear vision and pathway for the company.
Commitment: The journey of a tech company can be hard: reality can significantly deviate from the original plan. Disappointments, setbacks or ever-changing contexts are common. These situations demand resilience and perseverance. That’s why a CEO with true commitment is crucial for the success – and in some cases survival – of the company.
Entrepreneurship: An obvious competence: detecting opportunities in the market, for both existing and new products/services. To act accordingly and to dare to take calculated risks.
People Management: Building great teams by active recruitment is crucial. Ensuring preconditions are met to achieve strategic goals and stimulating internal and external collaboration. Personal development and engagement of employees is the priority.
Customer Understanding: Customer focus in today’s markets is not sufficient. To make a difference here, CEO’s need to understand the customers’ needs and requirements, and act accordingly to realize competitive advantages.
Execution Power – Process Management: Optimizing the main business processes in terms of results, quality, funding and costs. The CEO monitors progress according to the performance indicators (KPI’s).
Execution Power – Performance Management: Establishing high demands and standards of your own and the employees’ work and performance is a must. This helps defining and carrying out commitment for visible key performance indicators. And it inspires and supports the execution too. Also, CEO’s should always provide direct feedback and acts in case of non-performance. Do not be satisfied with average performance.