Search
Close this search box.
Search
Close this search box.

The CEO Tightrope: How to Master the Balancing Act Between the Ups and Downs

No company wins all the time. It’s not realistic to think a CEO won’t face problems during their tenure.

I managed NetQoS, a network performance solution provider, through 31 consecutive quarters of double-digit growth, but that winning streak was bookended by the post-9/11 recession and the 2008 Great Recession. Things were incredibly tough in both recessions and were a test of my credibility and competence.

We reexamined our mission, vision and values to make sure we hadn’t missed responding to a fundamental change in the market. I told employees that while I couldn’t promise that we would never have a downturn and have to lay people off, I could promise that I would be honest with them about our results and how the business was performing. When we did have to do a small layoff, no one was shocked because we had consistently communicated the struggles in the business and the need to cut expenses.

“Transparency is key to credibility and to inspiring people to push forward.”

Transparency is key to credibility and to inspiring people to push forward.

One of the ways you maintain balance in your approach as CEO is to use a set of consistent measurements to communicate to employees and the board how the company is performing. “Cheerleader CEOs” tend to change the metrics at each board meeting to focus on whatever positive news they can find. If they can’t find a positive metric, they just talk about the big deal that is going to jump-start everything.

Using a consistent set of metrics that are tracked over time to judge progress will discipline the Cheerleader CEO and all the employees to pay attention to what is important, regardless of whether the company is doing great or hitting a rough patch. Revenue, cash flow, growth rate, margin and other metrics that track progress on the business fundamentals must be constantly reviewed to create an objective view of the company.

So how do you maintain your credibility with employees while maintaining good morale and effective communication within the organization? Transparency is key. A CEO should ask themselves the following questions to find their personal balance:

  1. Consider the last time your company went through a rough patch. How did you communicate with your team about it? What did you do to support and encourage them?
  2. When a team achieves a big win or when the company is doing well, how do you maintain their focus on continually improving?
  3. What information do you share every month and quarter with your employees and your board? How does that information align with your mission and vision?

The well-balanced CEO is a paranoid optimist, focusing on reality and adjusting his attitude to counterbalance the natural ups and downs in a business. When you can do this successfully, you’ll keep your teams focused on the vision and mission and what they need to do to keep the company moving forward.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.