C-Suite Leadership in an Era of Growth

Image - C-suite leadershipDuring the recent “Great Recession,” many companies adopted a conservative operational strategy. Facing declining demand and slowing revenues, they looked inward: reducing operational costs, delaying capital investments and focusing on balance sheet management. In that challenging global environment, strong chief operating officers (COOs) and chief financial officers (CFOs) played leading roles in keeping their companies afloat.

Now that economic growth has resumed, particularly in emerging markets, many companies are embarking on expansionary strategies: opening new offices, launching new products and approving long-delayed capital projects. In this environment, chief marketing officers (CMOs) and chief technology officers (CTOs) are moving to the forefront of the C-suite.

While this is a highly simplified analysis of the complex talent requirements of the C-suite, it points to an important lesson: the key skill sets needed for an organization’s sustainable success may change over time. That means companies, nonprofits, educational institutions and other enterprises need to build a diverse talent portfolio in the C-suite. Settling for “B” grade talent in a secondary position in senior leadership can have serious consequences when markets shift and that executive is thrust into the limelight.

This analysis also points to the need for individuals to diversify their skills when seeking to advance their careers and help their organizations thrive in all types of markets. A CFO, for instance, may benefit from joining the company’s mobile technology strategy team, while a CMO might lead a detailed cost-benefit financial analysis of an emerging-market sales campaign.

For senior executives, these types of actions often mean stepping outside their comfort zones. But there are both personal and career benefits to taking these types of risks.  When market conditions shift, a senior executive with a broad and diversified set of skills is more likely to be able to adapt to the changes—and be tapped to move up in the organization when others cannot. Being able to understand multiple languages—numbers, sales or technology—helps C-suite executives avoid “silo” thinking or being pigeon-holed into one particular role.

Having a multidisciplinary knowledge and experience also allows executives to ask intelligent questions and make better-informed decisions. That’s one of the ways to move to the top of the C-Suite—in any type of market.

 


Would you like to discuss this and other ways to minimize risk in your human resources organization? Contact us today.

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