by Andy
October 6, 2010
Leadership is critical to any company. Sadly, many CEOs prefer to domicile themselves within the comfort of their company and personally oversee sales, finance, manufacturing, IT, etc. They then watch the market from their window and react to it, rather than try to directly influence it.
While corporate oversight is certainly part of their job, leadership can get overly smitten with efficiency and cost-cutting measures rather than trying to spur growth. These leaders will not last long – nor should they as there are only so many cost cutting and Six-Sigma benefits that can be squeezed out of any firm. (Admittedly, I come from marketing). Then what? I believe any CEO’s #1 responsibility is to leap out of the window and do what they can to influence the market in their favor. If they are successful, the company will thrive.
Remember, the CEO has personally-selected or approved others to oversee key facets of the company and charged them with executing the vision set forth. If cost cutting is required to boost margins, then the COO and CFO will be very busy. If organic or acquired growth is required to meet revenue requirements, then the CMO and head of Sales will be very busy. These folks are tasked with ensuring these dictums are achieved.
However, if the C-Suite is solely committed to keeping their job rather than fulfilling their broader role, then you have a top-heavy organization solely focused on themselves and status quo. Achieving real growth is near impossible in these situations. (Interestingly, those committed to fulfilling their broader role have a much higher likelihood of keeping their job – NOT the other way around).
I bring this up because of a good friend of mine works for a division of LimeLight Networks (Nasdaq: LLNW). It is a small, publicly-traded company that survived the dot-bomb era and has now started to thrive in the Internet media delivery space (I apologize if this description is a sad over-simplification). Their CEO, Jim Lunsford, appeared on Mad Money with Jim Cramer last week.
Watch video: http://www.cnbc.com/id/15840232/?video=1603241022&play=1.
That’s not an easy interview to procure given Cramer’s ‘Oprah-esque’ ability to influence smaller stocks. It was a great opportunity. But that is Lunsford’s job — to create favorable winds for his company to succeed while his team of highly qualified leaders capture that wind and turn it into increased sales and profits.
The result of this interview caused the stock to increase 50%! This is just one example to the power of effective, strategic marketplace leadership and wading into the broader discussion of the entire category. Corporate leadership cannot influence market winds if they don’t actively get outside.
Andy,
Excellent point, but I don’t think proselytizing is the exclusive responsibility of the CEO. All leaders… to be true leaders need to shape their relevant industries. As a senior exec in an IT organization for a
Fortune 100 company I sit on as many Advisory Boards, speak at as many Industry Conferences as possible. I collaborate with colleagues so collectively we have a stronger voice shaping the IT
industry. I firmly believe in the old adage that one must drive change so that change doesn’t drive
you! This can add share-holder value as well, albeit not as directly as an interview with the Mad-man himself.
Best,
Tom M.
Andy,
Excellent point, but I don’t think proselytizing is the exclusive responsibility of the CEO. All leaders… to be true leaders need to shape their relevant industries. As a senior exec in an IT organization for a
Fortune 100 company I sit on as many Advisory Boards, speak at as many Industry Conferences as possible. I collaborate with colleagues so collectively we have a stronger voice shaping the IT
industry. I firmly believe in the old adage that one must drive change so that change doesn’t drive
you! This can add share-holder value as well, albeit not as directly as an interview with the Mad-man himself.
Best,
Tom M.
Excellent teaching point with Lunsford. Key point: “his team of highly qualified leaders [must] capture that wind and turn it into increased sales and profits.” Great leaders make great teams. And, just as importantly, vice versa.
Excellent teaching point with Lunsford. Key point: “his team of highly qualified leaders [must] capture that wind and turn it into increased sales and profits.” Great leaders make great teams. And, just as importantly, vice versa.
Tom. You’re 1000% correct. In sports, the best teams create their own luck and seem to have an unfair advantage. This is how it’s done in business and how businesses can help ensure the ball bounces their direction.
Tom. You’re 1000% correct. In sports, the best teams create their own luck and seem to have an unfair advantage. This is how it’s done in business and how businesses can help ensure the ball bounces their direction.
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Thanks.
Finally something that really make sense. Was looking for this in other sites but not anymore!
Thanks.
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People are very busy today and when you are looking for something and find it, you really want to thank the author – and this is what I am doing right now – Thanks!
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This is the third time I came to your blog, I like your blog very much, hope you do more good posts.
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Have a fantastic day! Thanks for sharing. :0
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