The Holy Grail for companies and their investors is the ability to grow revenue and scale. But there is a necessary criteria, which is often overlooked: a CEO with a client-facing background and mindset.
Over the course of my career, I’ve witnessed an important correlation: CEOs whose companies perform the best and are most effective at achieving growth tend to be the ones with a focus on the customer-facing side of the business. They have trained themselves to be exceptionally engaging and attentive because they embrace the fact that 100% of their revenue comes from customers.
The simple truth is that you can’t be successful as a CEO without:
• A style that allows you to build relationships with your customers;
• The ability to really listen. Customers will tell you everything you need to know, but if you are doing all the talking you won’t hear them; and
• The self-awareness to relate to your customer, understand their needs and know the impact you are making.
What is the lesson for both novice and experienced CEOs?
First, to achieve success you need to focus on the following four things, and second, you won’t be able to succeed at any of these without engaging with your customers.
“At my first company we used to get paper checks and the pay stub read: “Brought to you by your clients,” which reminded everyone that none of this was possible without clients.”
1. Constantly deliver the P&L by prioritizing customer relationships. The simplicity of the name belies the tremendous amount of work that goes into achieving a great P/L. But what many CEOs fail to recognize is that these numbers come from relationships built with new clients, renewed clients and from upselling existing clients. Therefore, “deliver the P&L” really means nurture and grow your customer relationships above all else.
2. Consistently take market share from your competition. Spend time with your clients to understand the changing dynamics of their business. Listen carefully and learn their needs so you can modify your products or services to provide something that solves their problems better than anything your competitors are offering.
3. Prioritize innovation. Delivering new innovations to the market must be a priority, even when your numbers are strong. You can’t cut your way to greatness. Even if your P&L looks great, if you aren’t growing, your revenue will eventually go backward. You must consistently introduce new innovations based on your understanding of your customers’ needs.
4. Inspire your people to embrace your customer-focused philosophy. At my first company we used to get paper checks and the pay stub read: “Brought to you by your clients,” which reminded everyone that none of this was possible without clients. Ultimately, to drive great numbers and take market share, an organization needs a team of inspired people who value their customers.
Much of this advice favors the extrovert. But I’ve seen plenty of introverts, realizing the importance of these relationships, turn it on. If this is not in your nature, you need to augment your role. Great companies require an exceptional, dedicated head of sales/client relationships, and if that can’t be you, you’ll need to bring in someone who will thrive in the job. The only thing that matters in business is people: your employees and your customers.
Read more from Mike Salvino:
How A Former Accenture CEO Turned A Failing Leadership Into Growth
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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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:
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.
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.
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.
