Here’s a headline that should grab the attention of every CEO that stumbles upon it: “The Seven Habits of Spectacularly Unsuccessful Executives.” This provocative lead is from a recent Forbes article by Eric Johnson:
www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/
It is based on the research of Sydney Finkelstein, the Steven Roth Professor of Management at the Tuck School of Business at Dartmouth College. He published his book “Why Smart Executives Fail” eight years ago. Eric Johnson goes on to warn that the seven habits, listed below, can be found in current leaders considered to have achieved wild success for their companies and themselves. Through the course of my career, I have witnessed many of these traits in CEOs. Sadly, some of these companies which had good products, and even more importantly, good people, essentially disintegrate.
The seven habits, with what I think are the key takeaways, are:
#1 They see themselves and their companies as dominating their environment
Unlike successful leaders, failed leaders who never question their dominance fail to realize they are at the mercy of changing circumstances. They vastly overestimate the extent to which they actually control events and vastly underestimate the role of chance and circumstance in their success.
#2 They identify so completely with the company that there is no clear boundary between their personal interests and their corporation’s interests
Instead of treating companies as enterprises that they needed to nurture, failed leaders treated them as extensions of themselves. And with that, a “private empire” mentality took hold.
#3 They think they have all the answers
Leaders who are invariably crisp and decisive tend to settle issues so quickly they have no opportunity to grasp the ramifications. Worse, because these leaders need to feel they have all the answers, they aren’t open to learning new ones.
#4 They ruthlessly eliminate anyone who isn't completely behind them
CEOs don’t need to have everyone unanimously endorse their vision to have it carried out successfully. In fact, by eliminating all dissenting and contrasting viewpoints, destructive CEOs cut themselves off from their best chance of seeing and correcting problems as they arise.
#5 They are consummate spokespersons, obsessed with the company
Instead of actually accomplishing things, they often settle for the appearance of accomplishing things…When CEOs are obsessed with their image, they have little time for operational details.
#6 They underestimate obstacles
Part of the allure of being a CEO is the opportunity to espouse a vision. Yet, when CEOs become so enamored of their vision, they often overlook or underestimate the difficulty of actually getting there.
#7 They stubbornly rely on what worked for them in the past
Instead of considering a range of options that fit new circumstances, they use their own careers as the only point of reference and do the things that made them successful in the past.
