Importance of CXOs working in tandem with the CEO
While CEOs are undeniably at the top of their respective organisations, they require an able team. And that’s where the CXOs, next in the chain of command, need to pitch in with their inputs
Team sports excel at levelling the playing field. When players do not contribute to the team and rely on individual brilliance, they are bound to flounder eventually. The philosophy behind it can also be applied to the corporate world.
For example, FC Barcelona, arguably one of the best clubs in the world, had a fantastic attacking trio nicknamed MSN – Messi, Suarez and Neymar. The trio racked up an impressive goal count, eventually helping their team to record-breaking trophy wins. Not to be outdone, arch-rival Real Madrid had BBC – Bale, Benzema and Cristiano, who were similarly talented and consistently performed for their team.
There are similar examples of exceptional player combinations in cricket as well, be it - Greenidge and Haynes, Gavaskar and Chetan Chauhan, West Indies pace quartet of Roberts, Holding, Garner and Marshall – all seemed to understand each other perfectly and delivered whatever was asked for.
In the corporate world, while CEOs are undeniably at the top of their respective organisations, they require an able team. And that's where the CXOs, next in the chain of command, need to pitch in with their inputs.
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Many management gurus opine that the COO, CFO and CHRO can form a vital sounding board for their CEO, particularly in large organisations. Though ideas can come from any source and should be welcomed irrespective of their position in an organisation's hierarchy, invariably CEOs develop a close circle to deal with critical issues that may call for deft handling.
Effective collaboration in any organisation ought to begin at the top, where everyone must work in unison towards achieving the envisioned goals. CEOs, in close coordination with departmental heads, need to take a holistic view of their organisation and develop a cohesive overarching strategy - instead of individual ones - displaying a collective spirit.
Organisations should rally around their CEOs who are expected to lead them with well-defined vision and measurable objectives. Collaboration amongst all stakeholders is key for the dual success of a CEO and the organisation.
Usually, CEOs are multifaceted, exhibiting analytical, managerial, communication and leadership skills but there could be certain spots of weakness that could be overcome with the contribution of other CXOs.
However, a CEO creating a clique to run an organisation can be a two-edged sword. The composition of a CEO's core team largely depends on the leader's working style, the culture of that particular organisation and the major issues they might be grappling with. Let's look at the pros and cons of this.
Pros: The CEO needs to "talk the talk" by clearly communicating expectations and unambiguously setting the benchmark. The dictum that all 'sail or sink together' should be cast in stone.
The CEO should "walk the talk" and prove that the buck eventually stops with him. Even when things don't go as planned, he should not ditch the team and fall back into non-collaborative behaviours. Subsequently, when the team succeeds it should be celebrated publicly, recognised, and abundantly rewarded.
The CEO should ensure transparency and informality with his team to quickly arrive at decisions in tune with the changing times instead of dithering to look for unanimity.
Cons: When an individual's performance negatively impacts others in the team then the purpose of having an inner circle is moot.
If a member is not aligned with the vision fully or displays a lack of commitment, then it's better not to pursue a unified decision-making process. Detailed and careful assessment needs to be done by the CEO on whether to continue or disband the core team. A core team should not be full of 'yes men' who do not offer any unique solutions as this can lead to blind spots and a narrow funnel for ideas or innovations.
If a CEO's top team is large, then the time spent with vital external stakeholders could be reduced disproportionately. This insularity could often blur the CEO's vision to read prevailing threats in the marketplace.
Some CEOs prefer to have a large core group thinking it would help delegate responsibilities equitably but that can be counterproductive as the 'span of control' could get weakened or spiral out of hand. There could also be a likelihood of larger teams getting less integrated.
To mitigate these shortcomings, the CEO should regularly engage with staff outside the core team and foster an environment of independent thinking.
Sabyasachi Dutta is the Country General Manager of Crown Agents, a British MNC in India. He is a business executive with more than two decades of corporate experience and primarily writes on buzzing management and leadership topics.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
