Professional Documents
Culture Documents
CEO Road Rules1
CEO Road Rules1
Foreword ix
Preface xv
Acknowledgments xxiii
About the Authors xxvii
P A R T O N E
FOCUS
2 The Right Road 43
3 The Right Focus 49
4 The Right Planning 69
vii
viii
P A R T T W O
PEOPLE
5 The Right People 97
6 The Right Resiliency 123
P A R T T H R E E
EXECUTION
7 The Right Execution 149
8 The Right Legacy 171
Epilogue 189
References 195
Index 197
FOREWORD
ix
x ceo road rules
—Nido Qubein
xv
xvi ceo road rules
Our Approach
xxiii
xxiv ceo road rules
—Dennis Stearns
ABOUT THE AUTHORS
xxvii
xxviii ceo road rules
Dennis Stearns
Dennis Stearns is president of Stearns Financial Services
Group (www.sfsg.net), a fee-only wealth management
firm based in Greensboro, North Carolina, serving clients
throughout North America. Over the course of twenty-
five years he has assisted hundreds of CEOs with their
about the authors xxix
1
2 ceo road rules
Joe pulled open the door of his black Porsche 911 Carrera
and landed full weight into the low seat. This was his dream
car—a reward he had given himself once his business had
turned an important financial corner. Sharon’s laugh flashed
in his mind as he remembered their first ride in it together.
Shifting gears along the winding industrial park road, Joe
sped far beyond the speed limit. He didn’t care; the pressure
in his head seemed to let up as his speed increased. Joe’s eyes
focused on the blur of Christmas lights that were already on
in the early dusk as he entered Peak Trails, where he and
Sharon had built their home.
He remembered the first time he had brought Sharon
there. They were both so excited. As they drove around the
development, Sharon wondered whether they could really
afford a home in Peak Trails. Joe always thought big and
remembered telling her, “It’s more than possible, honey.
Everything we’ve dreamed of. It’ll all be ours.”
Just five short years ago, everything had seemed to be
going so well. He and Sharon were building their perfect
home; Collin, his son, was starting school; and Chiron was
finally getting the recognition it deserved for its innovations
in robotic processes and designs.
Now everything had gone straight to hell. He kept accel-
erating. The power of his car calmed him. He stared forward,
and his mind seemed to finally shut off. Out of the corner of
his left eye, Joe noticed a boy on a bike starting to cross the
street. The boy looked about ten, the same age as Collin. Joe
missed living with his son: eating chocolate ice cream out of
the carton past bedtime, and doing math problems while
watching baseball on TV.
4 ceo road rules
A Partner Returned
Joe scoffed, “What? What the hell are you talking about?
Who are you?”
George’s face grew red as he pointed his finger in Joe’s
face. “I’m trying to help you—you don’t get it. You’re so
wrapped up in what you think is right, you have no clue.”
“I have no idea what you’re talking about,” Joe sighed,
exhausted and confused.
“Look, I can’t stay here and explain. That’s not my role in
this. I helped create some of the problems and now I’m gonna
get you the help you need from others who have some good
skills, the right expertise, and experience. Now this might
seem a little weird, Joe, but you’re gonna be visited by these
spirits, these three CEOs.”
“What!?”
“Just listen to me. One is gonna show you things from
your past, another stuff from the present, and the last one
will show you future possibilities. You gotta pay attention,
Joe, to what they tell you; it could change your life. That’s my
hope, anyhow—that you live your life to the fullest, really do
something with your life, before some crap comes along and
kills you before your time. I should know all about that,
right?” George smiled a little.
“I miss you, George,” Joe blurted and looked down at
his feet.
“Me, too, buddy,” George went on. “But I’m always close
by. Don’t forget that. Remember though, I’m keeping tabs on
what’s going on, so don’t blow this.”
the ceo’s ride 7
Joe looked up, but his old partner had disappeared. What
was going on? Was this some kind of delusion? Did he just
imagine his dead partner’s return? He’d think he was dream-
ing if he weren’t so weary and needing sleep. “I’ll worry about
this later,” he muttered, and slid down along the tree, closing
his eyes and falling into a deep sleep.
and Joe, as if they had walked onto a TV show set without the
characters realizing they were peering in on them.
His ears perked up at the sound of his father’s calm, level
voice being interrupted by someone clearly working up to a
rage.
“Pete, how ’bout if you just keep your comments to your-
self?” the red-faced foreman said, practically nose-to-nose
with Joe’s dad.
“Look, the guys have some good ideas about how to make
our product better. Can’t you just listen for a minute?” Pete
asserted calmly.
“I don’t want any crap from you. You’re here to play base-
ball, and you think you’re such hot stuff. What do you think
you’ll accomplish? Back off, Pete—we’ve got this handled. You
act like a union steward or something. It’s not your job to rep-
resent the guys. I’m the boss here. If you don’t like it, leave!”
Joe’s heart ached as he saw his father try to stand up for
his ideas, only to be shut down. Joe cried out, “That bastard!
Don’t let him treat you like that, Dad.”
Pete lowered his shoulders and, shaking his head, walked
away.
“So, what do you think happened here?” Robert inquired,
sliding his eyes toward Joe.
Joe was furious. “Are you kidding me? How dare they
treat Dad this way? I can’t believe he just took it.”
“Do you think any of your employees have ever felt this
way, Joe?” Robert continued.
“What do you mean?” Joe snapped.
12 ceo road rules
Joe broke his silence. “Look, Ellen, calm down. There are a
lot of things about this business you don’t understand,” he
said, speaking slowly, as if she were a child. “We need to make
our profit margins. And I don’t have money in the budget to
increase overhead right now. What solutions do you have?
Hmmm? All I hear is your usual list of complaints and
problems.”
“How can you say that, Joe?” Ellen snapped back. “I’ve
presented you with several proposals on what we can do to
rearrange the floor space and on how to compensate the
workers differently so they are rewarded for going the extra
mile.”
“That all costs money, Ellen,” Joe growled.
Joe stood transfixed as he watched the younger version
of himself put Ellen in her place. Robert pulled on Joe’s sleeve
to signal it was time to go.
As they walked out of UT Robotics into the cold, dark
Chicago afternoon, neither man spoke until Robert asked,
“Ready to get a cup of coffee and talk?” He placed a hand on
Joe’s shoulder.
Joe nodded silently, and they were suddenly in a booth at
a nearly empty diner around the corner.
“What did you see as you watched yourself with Ellen in
the past?” Robert asked casually.
Joe gazed into his cup. “I saw myself being very hard on
her. The funny thing is, I didn’t remember it that way. I guess
I wrote Ellen off as a social worker type who didn’t under-
stand that we needed to make a profit.”
14 ceo road rules
“How was that scene like the one you saw your dad expe-
riencing?” Robert pressed.
Joe raised his eyes with sudden recognition. “Wow, I did
sound like his old supervisor, the one I wanted to hit. I wasn’t
as ‘in your face,’ but I still refused to listen. Why was I so
closed off?”
“What do you think you could you have done differ-
ently?” Robert continued.
“Well, I remember really wanting to make outstanding
numbers so I could show corporate what a great plant man-
ager I was and so I could make the top of my bonus scale. I
was proving myself to others, and despite the conditions Ellen
talked about, we were still doing well, numbers-wise.” Joe
paused. “I could have given more support to Ellen and the
people on the floor. Money wasn’t really as tight as I used to
emphasize it was. . . .” His voice trailed off.
“Do you know what happened to Ellen?” Robert asked.
“Uh, no,” Joe answered, embarrassed to realize he’d never
thought of her since he left UT Robotics.
“Well, you might remember passing her over for the man-
ager of operations spot, even though she was considered the
most capable. The employees really wanted her to get the
position, too, because they felt she was fair and listened to
their concerns and ideas. And because you felt like she burned
a bridge with you, your comments to others—supposedly off-
the-record and in her personnel folder—followed her for the
rest of her career. She lost her motivation and eventually was
let go during the ‘rightsizing’ that occurred after you left. Like
the ceo’s ride 15
your dad, Ellen let her dreams die because she couldn’t find a
way to make them grow. She now works as an assembler in a
nearby plant and struggles with depression.”
Joe winced as he realized the impact his actions had had
on someone else’s life.
Robert paused and watched Joe for a moment as he
looked down. “There is another way, Joe. At my old company,
the Glendale Tribune, we were able to engage the minds and
hearts of our employees and managers while growing prof-
itably. We did this through what I call Right Focus. Would you
like to hear more?”
Joe nodded.
“First, Joe, I’d like to ask you a few questions.”
“Sure, fire away,” Joe agreed. “I seem to have nothing but
time at this point.”
“Alright,” Robert continued. “What was your vision for the
company you started with George?”
“Well, we saw our company as the innovator in the robot-
ics industry, and we wanted to grow exponentially. We used
to say ‘$500 million in 5 years’ like a mantra to each other
and to the employees,” Joe smiled proudly.
“What kind of a reaction did you get from the employees
when you’d share your vision?” Robert prodded.
“Honestly, it was mixed. We had some employees who
were excited about the idea of growing, some who liked the
opportunity to innovate, and others who just weren’t onboard.”
“What kind of environment did you have at your com-
pany when you were getting started, Joe?”
16 ceo road rules
could have been a whole new business line for Georgia Tim-
berland, but he was treated as if he was being disrespectful
toward authority by a supervisor who clearly felt threatened.
The worst thing an organization can do is stop listening to its
employees, especially those closest to the work. If innovation
were valued at your dad’s company like it has been at mine,
he would have been rewarded for his initiative, not ignored or
chastised. Ellen, too.
“What made our company great was not just having a
vision that everyone could buy into but also having a set of
core values—like integrity or doing the right thing—that
served as our guiding principles and couldn’t be compromised
for financial gain. When an organization spells out core val-
ues that everyone is expected to take seriously, everything can
change.”
Joe shook his head. “I can see what you mean, Robert.
Why didn’t I see this before?”
“The important thing is that you see it now,” Robert
emphasized. “Next, the group asks itself what its core focus
is: ‘What is this organization best in our world at?’ Simply
said, Right Focus is about defining your direction: how you
treat each other and how you get there.”
“And these same principles apply to your life: you are a
miniature organization of sorts. As I lived the Right Focus
principles, clarity set in. I became more fulfilled. I realized
that my personal purpose deals with growing things. Beyond
the pleasure of seeing our company grow, I love helping oth-
ers grow in their lives. I grow in turn. That’s why I’m here with
you now.”
the ceo’s ride 19
When Joe woke up, he was back at the crash site, alone. The
car had been towed away, leaving muddy tire tracks and foot-
prints, along with shattered glass and something Joe thought
must be blood. His blood.
“I better see if I can find some help,” he said, struggling
to stand up and then giving up to rest for a minute. George
wasn’t there, nor was Robert, and it occurred to Joe that he
had sustained some kind of head injury that was making him
imagine all this. Robert made sense, but how could Joe have
traveled to his past like that? Was this even real, now, this
moment? Maybe he had been dreaming that he was in some
kind of time warp . . .
The ringing of his cell phone in his coat pocket snapped
Joe from his reverie. “That’s a relief. Guess I am still in the real
world,” he thought as he flipped the phone open.
“Hello,” he began. “I could use some help here. . . .”
“Hi, Joe. This is Janice Allison. I’m the CEO of All-Com
Insurance. I’m calling to let you know that I’ll be picking you
20 ceo road rules
been married for years . . . but it’s all about his business and
making money now. I know he’s been under more pressure
since George died, so I’ve tried to stick it out, but I don’t see
any light at the end of this tunnel. So I felt I had to take the
first step and file for a separation. Collin and I have to go on
with our lives. . . .”
Joe sat staring at his wife, aching to hold her. He hadn’t
realized the pain she had been suffering. They argued so much
that he saw only her angry side. Joe had been so frustrated
with her; he hadn’t been able to figure out what Sharon
really wanted. It wasn’t as if he could just leave his responsi-
bilities at the plant to attend to their personal life. He took
care of the family financially, and Sharon could have anything
she wanted. He had built her a great home, she didn’t have to
work, and he never questioned what she spent money on.
Yet, Sharon continued to substitute teach and volunteer.
She could have had a new car every year, but she still drove
her old brown Toyota Camry. Holding on to her old car was
her way of holding her ground, Joe often thought, in their
constant battles over money. She wanted to be debt-free and
to build a nest egg; he liked to take risks and leverage his
assets for a greater return downstream.
Joe followed Jan to the players’ bench and stood as near
as he could to his son, though Collin, huddling in the cold air,
didn’t seem to feel his presence.
Watching his son leave the bench, Joe was surprised to
see how tall Collin was getting; he hadn’t noticed until now
that his son had grown several inches since the last time he
the ceo’s ride 23
had really looked at him. Joe was also stunned to see that
Collin didn’t seem excited about the chance to make this play.
He loved soccer, he was strong and agile, but now he had a
merely dutiful look in his eye—like “I won’t let you down,” but
without a spark.
Still, he moved gracefully down the muddy playing field.
One of the opposing players came at him from the right side,
and Collin lost control of the ball.
“Watch your side!” Joe yelled.
“It’s time to go, Joe,” Jan said kindly.
“I’d like to stay and watch. Collin needs me,” Joe replied,
trying to ignore her.
“Yes, he does, Joe, but he doesn’t know you’re here right
now.”
As the two left the soccer field, Joe tried to reassure him-
self and Jan. “He wasn’t on today. Usually, he’d go after that
chance to break the tie.”
“Your family is obviously important to you, Joe. What did
you notice from watching them here today?” Jan asked.
“It’s hard to talk about it. I guess I didn’t realize how my
not being there for my wife and son has affected them,” Joe
replied quietly. “I’m angry with myself for letting things get
out of hand. I get so absorbed in my work, especially when I
see where things could always be better at Chiron. I guess
I thought Sharon could handle my work schedule. After all,
she has for the past fifteen years.”
Joe paused, then said quietly, “Sharon’s leaving really
threw me. She’s been through hard times with me, and I
24 ceo road rules
The Meeting
Tom made the situation with Sam and Tony a lot worse. He
could be a real troublemaker, and he and Tony and Sam never
got along. That’s why I decided to handle the situation with
them myself—or, I guess, mishandle it.” Joe’s face flushed as
he recalled the scene in his office.
Jan sensed Joe’s disappointment in himself and asked,
“What could you have done differently when you were hiring
for Tom’s position as the director of manufacturing?”
Joe looked up as he recalled a heated discussion he had
had with Jose.
“Well, Jan, Jose got problematic information from some
of the people that Tom gave us for references, but I was get-
ting impatient to hire someone. We had been advertising for
this position for a while. Jose wanted to continue looking for
candidates. I didn’t think either Tony or Sam could do the job.
The longer we looked for someone, the more irritated Tony
and Sam seemed to get. I felt like we needed an experienced
person to come in and help with the growth we were experi-
encing. Jose disagreed and let me know it. In retrospect, I see
he was right.
“‘You’ll regret this decision Joe,’ Jose said, and I still
pressed forward. Tom uses a ‘my way or the highway’
approach with his employees. The rumblings Jose heard when
he spoke to Tom’s references turned out to be a much bigger
issue than I had imagined.”
Jan nodded. “A lot of leaders make this same mistake.
When you run the company, you can use your weight and
push aside other opinions, but haste winds up making more
the ceo’s ride 29
When Joe awoke, Jan was gone. Bright light pierced his eyes.
He sat up and was startled to find a tall man in a gray suit
staring down at him. The man smiled broadly and offered his
hand to help Joe get up off the couch. “You’ve been sleeping
for quite a while, Joe,” he said, softly. “It’s time to wake up.
I’m Darrell Banks.”
“Where am I?” Joe mumbled.
“We’re at Chiron, but it’s ten years after your accident. I’m
here to show you the possibilities for the future. Nothing is
set, but several options are emerging. The first is this.” Darrell
clapped his hands, and the window shade opened. The sign in
front of the building read “Benfold Enterprises.”
“What’s Benfold Enterprises?” Joe demanded.
Darrell spoke deliberately. “It’s what will happen to your
business if you continue along the path you’ve been taking. In
other words, Joe, Chiron will be out of business.” Darrell
nodded toward the sign. “Benfold will buy your property for
its operation. In this scenario, Joe, you no longer head Chiron;
in fact, the company has gone bankrupt.”
“Well, that’s pretty direct,” Joe gulped. “What’s the alter-
native?”
“If I had to sum it up, it’s change or die. If Chiron doesn’t
improve how it executes, its fate is sealed. However, you do
34 ceo road rules
have options. I’d like to tell you about some strategies that
helped me with Right Execution when we built Inmel.”
“Right Execution? What’s Inmel?”
“Inmel is a computer business I started with several
friends from business school. Our model has been to offer
twenty-four-hour turnaround using outside partners to cus-
tomize, ship, and offer services to our customers. We make it
simple for our customers to get what they need and get
online within an hour of set-up. Our business launched an
array of advanced technologies, such as the ability to use all
five senses while interacting with others online.”
“No way. This must be a dream.” Joe looked pale as he
tried to take in what Darrell was saying.
“What we do sounds far-fetched, I’m sure. Don’t get
caught up in the technology part. What has really made Inmel
successful is the execution of our plan. Some of these same
principles, if applied to your company, could help you change
that Benfold buyout scenario to this one.”
At that moment, a holographic image of Joe appeared.
“At Chiron, we offer our customers and partners the very lat-
est innovations in robotics. . . .” Darrell cut the connection
with a snap of his fingers. “That’s Chiron’s Web site from the
future, Joe. Pretty cool, huh? In this scenario, you have
global reach and are a key player in transforming your indus-
try. You have also changed the lives of people with disabilities
worldwide with your robotics technology. Showing you more
isn’t important. What counts now is what you do next.”
“How do we get there?” Joe asked, with so much enthu-
siasm that he surprised himself. “Chiron can become the
the ceo’s ride 35
he had gotten angry when Jose pointed out that Joe some-
times set a double standard. “You ask for participation,” Jose
had said. “And then you monopolize a meeting if the discus-
sion isn’t going in the direction you want.” When Jose
started to give Joe some examples of this behavior, Joe
abruptly walked out of his office.
“Is this hitting close to home?” Darrell asked. Joe smiled
sheepishly and waved for Darrell to continue.
“There’s a third principle of Right Execution, and, person-
ally, I believe it’s the most meaningful: widen your view,
understand what’s important to you, and live your legacy.”
Darrell could see from Joe’s eyes that he was lost in
thought. “What’s going on in your head, Joe?”
“I was remembering when Tony and Sam introduced the
idea of partnering with another organization to use our inte-
grative robotics technology with people who have physical
disabilities. They were so excited about applying our advances
to help others.”
“What happened?”
“I told them that I liked where they were heading. Unfor-
tunately, we didn’t do anything to support them. The idea died
of neglect.”
“At Inmel, we go back to the mission, vision, values, and
core focus—what Robert told you about—to make sure a new
idea fits. That’s how we ‘widen our view.’ Like you, we see the
positive effects technology could have on people with physi-
cal challenges. Doing something larger than ourselves has
become essential to who we are as a company and to who we
are as individuals.
the ceo’s ride 39
FOCUS
C H A PT E R
43
44 ceo road rules
49
50 ceo road rules
Mission
The mission of an organization involves its purpose. Your
mission answers questions such as, “Why are we here?”
and “Why do we exist?” Mission is your organization’s
higher calling and ideally offers a sense of purpose or
meaningful direction to each team member.
The challenge is to find a mission that is big enough,
real enough, and inspiring enough to unite those in your
organization so they feel they are a part of something
larger than themselves. Mission ties what people in the
organization enjoy doing and are good at to a clear direc-
tion. In short, an organization’s mission is a touchstone
that reminds a company about its essence.
Consider the following real-life mission statements,
and notice how they have the ability to inspire people to
do more than just collect a paycheck.
• “We help people achieve their goals, advance their
careers, and enrich their lives through education.”
(RedVector, an e-learning company)
• “To improve quality of life through compassionate
health care.” (Surgery Partners, Inc.)
• “To help our clients achieve economic success and
financial security.” (BB&T Banks)
When developing a mission, organizations that
involve all employees or a cross section of stakeholders
who represent the company’s diversity in the mission
planning process are more likely to engage the majority
the right focus 51
employees may feel that a select few will benefit from the
sweat of the many. Furthermore, it does not express a
higher purpose, which is a core element of a good mis-
sion statement.
You are more likely to keep great people when you
have a mission larger than yourself—one that also
encompasses your personal mission. One of Dennis’
business associates and a CEO we interviewed is a great
example of matching his personal and business missions.
After working with consulting firm Bain & Co. and learn-
ing the ropes on hundreds of projects, Michael Dough-
erty was offered and accepted a management position
with a major publisher. While there, Michael found him-
self drawn to children’s books and learning, and he built
up significant expertise in those areas. All along he knew
that something related to children’s learning was his
passion.
Through his contacts, Dougherty was offered the
opportunity to head an entrepreneurial company that
focused on children’s education. He found alignment
with his personal passion when he later became CEO of
Kindermusik International, one of the leading early child-
hood education companies with teachers all over the
world. “The company’s focus is to change the world,
teaching one child at a time,” explains Dougherty. This
company charge reflects the highly personal nature of
Kindermusik classes in contrast to mass education. Not
surprisingly, Kindermusik has prospered under Dougher-
the right focus 53
Vision
Values
TA B L E 1 | Performance Values
Core Focus
To determine your core focus, consider the answer to the
question “What can we be best at in our world?” It posi-
tions your company to excel in a core area that gives you
a competitive advantage and allows you to focus your
resources on what you’re best at.
In his outstanding book Good to Great, Jim Collins
outlined this same principle as part of what he called “the
Hedgehog Concept.” Basically, the Hedgehog Concept
states that when the following three intersecting ideas are
active within a company, performance consistently goes
from good to great. The three are:
the right focus 65
CEO
ROAD
RULES
•
Our top CEOs all have defined their specific mission,
vision, values, and core focus. How about you?
•
What are you passionate about? Not what your parents,
spouse, best friend, management team, or anyone else
thinks you should be passionate about, but what you enjoy
doing that causes you to lose all track of time.
•
Passion about your life and career will inevitably lead to
success and happiness. CEOs who figure out their life’s
passion sooner are more fulfilled and have more fun work-
ing than their less engaged counterparts do. What would
your company need to look like so you would spring out of
bed in the morning, looking forward to the challenges of
the day?
•
Be satisfied when you find your passionate niche and don’t
jump to a new leadership opportunity just because big
bucks dangle in front of you. Those who fall for the siren
68 ceo road rules
•
A sense of commitment will enable your company to
progress toward an overriding goal or inspiring vision.
Share your dreams with your team and family, and feel the
powerful force that will begin to move you swiftly ahead.
•
Develop a vision that is compelling to those who will
carry it out. Then do everything in your power to stay true
to the vision and communicate it to internal and external
people every chance you get.
•
Take time to clarify what your values are and notice how
they play out in your day-to-day activities at your com-
pany and at home. Rectify any inconsistencies and model
what you preach.
•
It’s easy to get scattered: find your core focus and stick
to it. Develop good habits to avoid distractions.
•
What do you want to be remembered for? It probably
won’t be last quarter’s financial results. Are you working on
a life that is larger than yourself?
C H A PT E R
A Significance Plan
69
70 ceo road rules
toward the life balance they sought. Our top CEOs were
clear on this point: it is absolutely essential to address
your baggage from the past before you can develop a
top-notch Significance Plan.
John Lankins, an insurance company CEO, illustrates.
“My family was a mess,” he says. “I learned what not to
do, but had to keep watching myself so I didn’t fall into
the dysfunctional habits that were my role models when
I was young. These included failing to admit mistakes
and apologize, telling people to do things and then doing
the opposite, and cutting off communication when you
didn’t like what you were hearing.
“Another CEO friend of mine did the same type of
planning I did, but he repeated most of the mistakes of
his parents. He married a nice woman, but treated her
poorly by not involving her in major family decisions
and slowly sucking the life out of her own dreams by
ignoring them. He raised kids who were not disciplined
and they turned to drugs as they lost respect for their par-
ents and their future. And he brought his anger at the
world into work every day of his life. He tried to lose
himself in his work, but he had a short fuse and ran off
any good employee who disagreed with him or seemed to
be living the happy life he wasn’t. He never tried to get
help, professional or otherwise. His plan failed and mine
worked. I can’t help but think the difference wasn’t
brains, but baggage.”
Successful CEOs have focused business and personal
plans and are able to adjust those plans as circumstances
76 ceo road rules
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CEO
ROAD
RULES
•
Find good advisors early on and take the time to map
out your internal and external personal plan, paying
attention to your Significance Plan. Then monitor the
personal plan and shift gears as your company situation
and business plan change.
•
Develop your vision of significance. Do this on your own,
then with a key person such as your spouse or significant
other; involve family members and key people in your busi-
ness as appropriate. Would you better understand and
relate to the people around you every day if you knew
what they aspire to for significance in their lives?
•
Figure out what past baggage may be affecting your
communication and relationships with your family, your
work associates, your friends, and others you deal with
every day. Take action to deal better with the baggage with
the help of mentors, close friends, your life partner, CEO
peer advisory boards, and counseling.
94 ceo road rules
•
Consider various scenarios using the input of people you
trust, including industry experts, mentors, advisors, and
teammates when creating both your business and per-
sonal plans. Scenario projections in planning may spell the
difference between the Right Road and a dead end. They
can also help you develop the right balance with your
Significance Plan.
•
Develop a “dashboard” with gauges that tell you how you
are doing in both your business and personal life. Objective
goals are easier to track than subjective ones. Set bench-
marks with your life partner and family on what will con-
stitute success and significance.
•
As you do traditional external business and personal
planning, be true to your vision and set your own pace
without the burden of the myths and distractions that
swirl around you every day. Make sure your advisory team
is talented, grows with you as you grow, is compensated in
alignment with your best interests, and has an appreciation
for the balance of internal and external planning so they both
understand and help you achieve your Significance Plan.
•
Consider the four areas of happiness, achievement, sig-
nificance, and legacy, and define what “just enough” is
for you. To get more specific, use Nash and Stevenson’s
process of sorting by self, family, work, and community.
PA RT T WO
PEOPLE
C H A PT E R
Having the Right People on your team can spell the dif-
ference between success and failure. When it comes to
your team, the Right People include (1) your work team,
(2) your network and support team, and (3) your home
team. Let’s look at each team in detail so you can better
understand how to enhance that area of your life. After
all, without a complete and balanced team, your profes-
sional and personal performance will suffer.
97
98 ceo road rules
Evaluation of Candidates
If you want the Right People, you must have at the core
of your approach the following guiding principle: past
behavior speaks volumes about future behavior. Yes, peo-
ple can change; however, change rarely occurs unless
some major crisis or demand for change comes about due
the right people 101
Leadership X X X
Persuasiveness/ X X
Influencing
Judgment X X
Innovation X X
Teamwork X X
Planning X X
Integrity X X
Developmental Coaching
Just like all great performers, your work team members
need the help of a coach to understand how they can
improve and enhance their performance. Rhea Law, CEO
of Fowler White Boggs Banker law firm in Florida, ob-
serves, “I personally want to make sure that the resources
are there to do what we need to do to develop leadership.
In that spirit we founded Fowler White University. It
addresses our goal of developing others. Accepting where
people are, listening to them, and coaching them are all
critical factors in developing others and, I believe, con-
stitute what it will take for us to reach our vision.”
Developmental coaching can be done in-house, with
supervisors and others acting as coaches or mentors from
the right people 107
Characteristics of strengths
• A yearning to engage in the skill or activity
• A great deal of personal satisfaction derived from the
skill or activity
• A period of rapid, almost effortless, learning to acquire
the skill or perform the activity
108 ceo road rules
that person’s network and so on, to the point that the net-
work took on a life of its own, constrained only by the
executive’s ability to connect and have meaningful rela-
tionships with a geometrically growing group of friends
and colleagues.
Our CEOs also told us stories of how they found their
marriage partner, business partner, banker, and other
resources that served as great supports through the infor-
mal networks they developed. Usually the network grew
as the CEO took the initiative to participate in commu-
nity and church activities; professional, trade, or industry
associations; and peer advisory boards. Even if you are
not an especially great networker, befriending some-
one who is can often lead to many new contacts and
relationships.
David Bruce, founder and former head of an engi-
neering company, started networking out of college and
found the contacts he made to be invaluable in figuring
out the business he wanted to run someday, lining up
early customers, and observing the mistakes of his frater-
nity brothers on what not to do when starting your own
business. “I made a commitment to be part of Rotary,
went to the Chamber of Commerce lunches, became part
of a CEO roundtable group, and joined a variety of
organizations. An early mentor and an executive coach
helped me understand the power of the network. Rather
than overtly try to sell to people I met as my network
developed, I built long-term relationships that helped me
every step of the way.
the right people 115
CEO
ROAD
RULES
•
Assess the right people in your life—your work team, your
network and support team, and your home team.
•
Remember past behavior speaks volumes about future
behavior. This principle can help you improve all hiring and
partnering decisions.
•
Resist the urge to get someone in place fast if you aren’t
sure of their skill set or the fit.
•
Build a systematic selection and hiring process and stick
to it.
•
Make coaching a requirement for everyone in a leadership
role in your organization and set up consequences if they
do it well or if they don’t.
the right people 121
•
Join a peer advisory board and use the forum as an oppor-
tunity to work through your top business issues and to
network.
•
Make time for your friends and family. If necessary,
schedule time with them in your planner. They are your
biggest supporters and need you as much as your business
does.
•
Make time to network with others you respect who may be
ahead of you in a key area(s). Think of it like planning—
you have an initial time investment up front, but the return
on your investment is priceless.
•
Consider ways to coach and find coaches for your chil-
dren and grandchildren. Help them surround themselves
with strong network resources.
C H A PT E R
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124 ceo road rules
Mental Toughness
trends may affect you because you aren’t just seeing the
company in isolation or only in relationship to your cus-
tomers. When you take a big-picture view of all the inter-
relationships, you can learn more about what other
stakeholders see in the future.
In doing so, many of the top CEOs we interviewed
have been studying various megatrends. One conclusion
is that the rate of change we will see in the next twenty
years will eclipse that of the past twenty, causing anxi-
ety, stress, and anger at unprecedented levels, right along
with huge opportunities to grow individually and to
prosper in business and in life. Opportunities and threats
are nothing new to many entrepreneurs. However, if this
change happens so fast that it upsets the balance of the
supply chain, your company employees, community
organizations you serve, and perhaps even your family
and friends, you may find yourself needing resiliency and
agility skills at a higher level than ever before.
Just because your company is resilient and successful
doesn’t mean that all your upstream and downstream
vendors, partners, and suppliers are equally resilient. A
number of the CEOs we interviewed now grade their
entire supply chain based on factors such as their faith in
each link’s leaders, financial strength, history of working
through tough times with the company, relationship of
key employees in the link with their own, and how they
rank on the food chain within this system. If our interde-
pendencies are broad, we are more likely to be exposed
the right resiliency 137
Distance in Observing
CEO
ROAD
RULES
•
Change is constant. Being resilient and agile is essential
to creating success and significance in your life.
•
Get mentally tough and build resiliency on an ongoing
basis.
• Notice what you say to yourself and change your self-
talk if it’s negative.
• Continually visualize your preferred outcome.
• Eat right and exercise frequently.
• Use humor; it takes the edge off and can help you be
more creative in a challenging situation.
•
Be an organization that keeps learning from experiences.
• See your business and your life as a system of inter-
connections.
• Preserve best practices from your past and adopt good
ideas from others.
• Anticipate future trends and brainstorm how to deal
with the challenges and opportunities they bring.
the right resiliency 145
EXECUTION
C H A PT E R
149
150 ceo road rules
After his visit with Darrell, the CEO mentor from the
future, Joe realized how his company had become less
and less effective at executing. He didn’t have the first
two priorities right—Focus and People—but he compen-
sated early on by working hard and executing well. As
Joe’s company grew, he didn’t know how to keep this up,
and then the shortcomings of not having a plan and not
having all the right people caught up with him. The CEOs
we interviewed echoed this problem. Some things became
easier as they grew, such as the owner not having to wear
quite as many hats, but most day-to-day activities
became more difficult as decisions were required con-
stantly and also had more zeroes attached to them.
Execution fails for a variety of reasons. One of the
most common is not helping employees connect with
the company’s overall direction and helping them see
where their efforts tie into something larger. Consider
these alarming statistics from Harris Interactive, cited by
Stephen Covey (2004).
• Only 15 percent of people in organizations can ident-
ify the most important goals or top priorities
• Only 19 percent feel passionate about the organiza-
tion’s goals
• Of those working on priority goals, approximately 49
percent of their time is focused on these goals
the right execution 151
high
performance
FoFlololl dAacct t
Ffeed imely
anand
leadership
back
w
ow-Uupp
tT
Give
Coach
Coach
frequently
Frequently
A Broader View
We’ve talked about how to engage others to execute with
excellence. Beyond achieving your plan and the results
162 ceo road rules
you want, how do you widen your view and create sig-
nificance for yourself and for those you lead? Many CEOs
must hit rock bottom or experience a life-threatening
event, such as facing cancer, for them to stop and think
about what a successful and meaningful life means to
them. Like Joe, the changing environment forces con-
templation, perhaps for the first time. Rather than take
the long and hard road, consider the following.
• When you have a new idea you want to execute, go
back to your mission, vision, values, and core focus to
make sure the new idea fits.
• Remember that real and enduring success is about the
sum total of the actions, activities, and events in your
life, so consider the long-term implications of what
you plan to do next.
• Three categories help sort through what needs to be
part of a meaningful life.
• Achievement: whatever you want to excel at or
accomplish in your life
• Happiness: whatever brings you joy
• Legacy: going from success to significance—the
impact of the gift you want to leave behind (see
Chapter 8)
Jim Ferman Jr., the CEO of Ferman Motor Car Com-
pany, has been able to execute well in the business
started more than a hundred years ago by his grand-
father, W. F. Ferman. Here is what he says:
My major accomplishment was growing a business that
was based on an old model and brought this family busi-
the right execution 163
CEO
ROAD
RULES
•
Get input from the entire company, as well as from key
stakeholders outside the company, on where your organi-
zation is in relation to the plan and how you need to get
there.
•
Develop observable, measurable, and verifiable objectives
for teams and individuals that support your plan and that
set a standard for excellence.
•
Determine how you want to acknowledge and reward
people for meeting and exceeding their objectives.
•
Everyone in your company needs to know that executing
on commitments and supporting their success are your pri-
orities; you demonstrate this through your actions. Ask
performance-related questions, seek ideas, and place an
emphasis on achieving agreed-on results.
the right execution 169
•
Make accountability and excellent performance priori-
ties, and set up a reward and recognition system that sup-
ports reaching performance expectations.
•
Personal execution by you and your family should be
guided by a shared vision of the future. Where the vision
isn’t in sync, at least make sure your family resolves con-
flicts well so one roadblock doesn’t get the entire families’
Significance Plan off track.
•
Do as I say, not as I do will lead to failure and potential dis-
aster in both your business and personal lives. Your fam-
ily and your employees closely watch how your words
and deeds match up every single day. Right Execution
depends on keeping values, policies, and execution aligned.
C H A PT E R
171
172 ceo road rules
Developing a Legacy
friends would have and certainly took more time than any
doctor. He helped me understand how to comfort my
wife. He called my son into his office to talk about
my medical condition. After explaining the risks of my
surgery, he got my son talking about himself. Thirty min-
utes later, my son had an appointment with a therapist, a
drug counselor, and a friend of Wade’s who was willing to
give him a job and a break. My son is now a manager of
this fellow’s company and has a wife and two children. He
has been clean and sober for over fifteen years. My wife
and I have had a wonderful marriage and enjoy our
grand-babies. I came in to see Wade and have my arter-
ies repaired and left having my entire life repaired.
“Wade would always listen intently to what you had
to say,” said another friend.
You knew you had his undivided attention. Half the time,
I figured a problem out myself just by talking to him!
There’s something about talking with a wise man that
makes you wiser in the bargain. The other half of the time
he would ask questions and help you think through the
problem. And the huge network of friends he had meant
he could get somebody else into the discussion who
might have the answer, even if he didn’t. He was always
learning, always trying to make himself better. Wade
really tried to help turn people’s lives around; he didn’t
always succeed, but most of the time he made a real
difference.
184 ceo road rules
CEO
ROAD
RULES
•
Position your company for long-term success and signif-
icance. Make sure you have the best and brightest people
doing purposeful work; this will free up time and focus for
you to pursue a higher level of significance in your busi-
ness, with your family, and with other personal pursuits.
•
Help mentor others and develop talent within the organ-
ization. This is a good idea for all areas of your life since it
strengthens your networks and the people around you who
can help you make your dreams come true.
•
Positively affect community organizations and beyond
through your company’s generosity in dollars, time, and
access to resources. Being a “good citizen” is important to
enhance the quality of life where you, your family, and
your employees live.
•
Be a Great Leader—level 3 or 4 will probably get you to
your destination, but striving for level 5 makes it more
likely you and your company will achieve both success
and significance. Level 5 leaders are both personally hum-
ble and fiercely focused on goals and accountability.
the right legacy 187
•
Make your organization an employer of choice. If you
follow the Right Focus, Right People, Right Execution
approach to your business, it will be an attractive place to
work, which will further enhance your success and possi-
bilities of achieving your Significance Goals.
•
Write a speech now for your last day at work and describe
your organization’s greatest contribution. Then write your
eulogy and notice how much time you spend talking about
the company versus your family, friends, and community.
•
Ask: How will our company contribute to the greater
good of society? The world? How can you create products
and services that improve the lives of your company’s cus-
tomers and accomplish your financial goals for the company?
•
Consider how many lives you could affect if you model
significance along with success. Like ripples in a pond,
your helping to positively influence others multiplies.
C H A PT E R
EPILOGUE
189
190 ceo road rules
great kid. Build a future, now that you got a second shot
at one.”
“I will, partner, I will, but I’m kind of here and all that’s
there, and . . . ”
And then, suddenly, he wasn’t there, wherever there was,
anymore. He was lying in a hospital bed, a pale yellow curtain
pulled around it. “Okay,” he whispered. “Bye, George. Thank
you so much.”
“Joe?” He was startled to hear Sharon’s voice. “Joe? Are
you really awake? How do you feel? Oh, God, the doctors were
saying they had no idea when you’d wake up, if you’d wake
up. How do you feel? Can you talk? Did you just say some-
thing about George?”
Joe looked at his wife. He felt such love for her, just as he
had in their first years together. He realized she was clutch-
ing his hand, and he squeezed hers. He wondered for a
moment if this were real, if she was really there or just an-
other vision. Either way, he had a lot to say, if only he could
figure out how to say it.
“I’m sorry,” he heard himself say. That was a good start.
“For everything.”
“Let’s not get into that now, Joe. I need to go tell the doc-
tor you’re awake,” Sharon said, standing and starting to move
away from the bed.
“No, let me just say something first. I feel like I’m just
bursting, Sharon. I have to say this.”
“Okay,” she said, somewhat nervously, and sat again next
to the bed.
192 ceo road rules
ogy, just like we planned. We’ll never settle for less than the
best, ever again. The whole organization is going to determine
our mission, our vision, our values, and decide what we can
be best at . . . I know this is a lot to absorb right now . . .”
“No kidding.”
“But will you at least think about it? Will you talk to Sam
and come see me whenever you’re ready?”
“I don’t understand. What’s this all about? What brought
about this change?”
“You wouldn’t believe me if I told you, Tony. I don’t quite
believe it myself, but it doesn’t matter. What matters is that I
have changed and, together, we’re going to make a differ-
ence—if you’ll join me.”
“Well, I can’t say I’m not intrigued. Sam and I have some
free time these days. How about we meet in the morning?”
“That’s great, Tony. Thank you. Only don’t come to my
office. I think my office is going to be in Parkview Hospital for
a few days.”
“What?”
Joe looked up to see Sharon and a doctor pulling back the
yellow curtain around the bed. “Look, I have to go, Tony. But
bring Sam tomorrow morning to Parkview. And, buddy, please
drive carefully, OK?”
C H A PT E R
REFERENCES
195
196 ceo road rules
INDEX
197
198 ceo road rules
tion of, 127; response stages of, values connected with, 175;
126 personal, 57–58; self-assessments,
support team, 109–111 67–68
systems thinking, 135–136 “vision litmus test," 56
vision statement: description of,
Teasley, Harry, 151–152 55; mission statement vs.,
therapist, 78–79 58–59
third-party observation, 138–139 visualization, 131
Treat, Gary, 161
trends, 136 Wallace, Tom, 108
wellness tune-ups, 113
value behaviors, 62–63 West, John, 175–176
value themes, 59–60 Wheel of Life, 90–92
values: in accountability system, Williams, Pam, 91
61–62; conflict in, 61; core, work team: candidates for,
63–64; definition of, 59; impor- 100–106; description of, 97–98;
tance of, 64; performance, 62; developmental coaching of,
personal, 59–60; self-assessments, 106–108; developmental needs
67–68 of, 108; hiring. See hiring; loss
vision: attainment of, 132; com- of, 98; selection of, 99–100;
municating of, 153; description strengths of, 107–108; weak-
of, 53; development of, 53–55; nesses of, 108
mission vs., 53; passions and