“It’s frankly a horrible job — I wouldn’t want it.”
That’s Stanford professor Nicholas Bloom, talking about the CEO role. He’s quoted in a NewYork Times earlier this week titled “Who Would Want to Be a CEO?”
The premise of Ravi Mattu’s article is that the CEO in 2023 faces inordinate pressure from all sides, more than ever before. That makes the CEO’s high-wire act harder than ever, to the point that most wouldn’t even want the job.
Let’s look at the issues cited in the article and see what we can glean about the modern CEO’s predicament.
Issue 1: “Being a CEO of a big company is a hundred-hour-a-week job. It consumes your life.”
Yes, sometimes the CEO job is does demand 100 hours a week—but it’s also usually a sign you’re not doing the job well. Most CEOs don’t have a systematic way to think about their responsibilities, so they take the old Whac-A-Mole approach.
There’s always some new problem you can get tied up in. However, if you’re doing the job correctly and prioritizing your core responsibilities, the job, while stressful, can be done in a normal professional workweek.
(Shameless plug: I have a new book on those responsibilities coming out next week.)
Issue 2: “Executives are under intense scrutiny for the positions and commercial decisions they take on hot-button political issues.”
The culture wars are at a fever pitch, and we’ve all watched Disney’s war with DeSantis—a highly visible example of blowback from a corporation’s political stance.
My take on this isn’t always easy to apply but it is straightforward: CEOs should not engage in political statements unless the matter is directly applicable to their industry. You’ll get pressure to jump into the fray. The sound decision is usually to stay out.
Issue 3: “Shareholders, policymakers, and commercial imperatives are pushing companies to put sustainability at the heart of their operations.”
This is true. But there is also growing backlash to hollow “ESG” initiatives.
CEOs should make judgments that keep their companies sustainable and support their long-term survival. But unless you operate in a directly related industry, getting mired in debates around climate and sustainability is a losing battle.
You have three core constituencies as CEO: your customers, your employees, and your shareholders. If your company is creating long-term value for all three oft hose groups, you’re doing your job as CEO.
Issue 4: “The transformative potential of [AI] is forcing CEOs in every sector to balance the opportunity it presents with the disruption it will inevitably cause.”
Unless your company is in the business of AI, the CEO should view artificial intelligence simply as a new tool, much like computers were several decades ago. Yes, AI will affect everyone’s job, just as back then everyone had to learn to use email, word processors, and the internet.
Rather than vaguely worrying about what AI means for the future, grow your proficiency with AI tools. Encourage your employees to use them, just as you would encourage them to capitalize on any new technology.
Issue 5: “[CEOs] can no longer rely on old-style hierarchical management techniques that are increasingly ineffective.”
You hear this a lot, but it’s a straw man argument.
CEOs of large companies were never able to dictate what all their employees do, and there certainly hasn’t been a new falling away of hierarchy in the past few years.
Reaching back into the mid-twentieth century, good CEOs have always relied on leadership that empowers employees to work in a way they feel is best.
Mattu positions the CEO’s loss of hierarchical control as part of the struggle to get people back to the office. But I don’t think the “back to the office” push is about the CEO trying to command and control. It is much more about fundamental human needs.
We are herd animals at the end of the day. Though distributed teams work in some contexts, being together in person the healthier and more productive setup for other groups.
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Though thorny, I don’t see these issues as likely to deter people from aspiring to the CEO role. It’s always been and always will be a very demanding role.
Fortunately, when done well, it doesn’t have to come at the expense of your sanity.