This is a very popular TED talk by Hamdi Ulukaya who argues that the playbook for businesses and CEOs is wrong. He contends what is needed is an “anti-CEO” playbook.
I feel his pain and understand the sentiment.
But the “anti-CEO” playbook part is wrong.
We need instead a C.E.O.S. playbook as suggested by Dr. Michael O’Connor decades ago.
The C.E.O.S. are:
- Customers
- Employees (or any direct worker)
- Owners or shareholders
- Significant other stakeholders (e.g., communities, major vendors)
True sustainability and business longevity/success comes from balance across the C.E.O.S.
The true role of the CEO and leaders, then, is working to constantly maintain the balance amid constant destabilizing forces.
The “Wall Street” focus has historically been focused on the “O” … this leads to a primarily financial view of a company. Success is then measured by profits and other financial measures like stock price. This financial imbalance in the C.E.O.S. is a primary driver of the issues highlighted in the video. Maximizing profit and focusing solely on that leads to the issues.
Profit, however, is necessary for a for-profit business to survive and achieve all the other aims advocated in the video. It should not, though, be all-consuming to the continuing detriment of C, E, and S.
Another reason the “anti-CEO” stance is wrong is that the CEOs are doing what they have been tasked to do. Public companies – where most of the outsized CEO compensation mentioned in the video resides – are governed by Boards. The CEO in turn works for and responds to the Board (at least in theory ;-).
Especially in larger corporations, the Boards are often representatives of significant shareholders. The shareholder short-term interests are, naturally, financially oriented … especially given quarterly results cycles and effects on share prices. The CEOs are incentivized accordingly. Singling out CEOs with an “anti-CEO” playbook seems to focus on a visible and convenient target … but not the right one.
Want improvement as advocated in the video?
One that also addresses many of the employee issues and lack of engagement uncovered during the pandemic and persist?
? Change the mission, values, and vision – then change accompanying strategies, the culture, etc. – to match and implement a C.E.O.S. model.
That’s the true transformation that is needed, beyond any of the other “transformation” stuff currently in fashion.
Contact us to discuss what harnessing the power of all the C.E.O.S. can look like in your situation.
