The versatile leader: How learning to adapt makes CEOs better

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The versatile leader: How learning to adapt makes CEOs better

By Dana Maor et al., | McKinsey Quarterly | July-September 2024 | Book Excerpt

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Some of the most innovative and creative people in history succeeded because they were versatile. They were able to master more than one discipline and then combine them to forge new ideas and inventions.  Why is being a versatile CEO so important? Because it can help leaders effectively engage with employees and other stakeholders and make a big impact on the bottom line.  The authors, while taking excerpt from their new book, The Journey of Leadership: How CEOs Learn to Lead from the Inside Out (Portfolio, September 2024), explore how today’s business leaders can similarly turn their diverse experiences into meaningful outcomes.  Three elements: 

1. Do what feels uncomfortable.  One thing the authors noticed about some of the most successful leaders is that most credit their career trajectories to a singular formula.  Whatever the bundle of skills, most of these leaders operate in only one basic mode. They do what they’re good at and feel comfortable with, and they get rewarded for that behavior.  But having a single strength might not always be what’s needed to run a large, complicated organization.  Much of this comes down to what kinds of experience leaders have. If they lack certain types of experience, they must find people both inside and outside the organization to complement any gaps.  Those striving to become CEOs should make sure they put themselves into a range of environments, situations, and challenges where they can grow a varied set of skills. At one point, they might volunteer to, say, help with a big restructuring. At another point, they might decide to run a midsize company that wants to grow from $500 million in revenue to $5 billion over the next five years. 
2. Go deep.  A variety of operating skills is the first prerequisite for cultivating versatility. The second is to be a deep, creative thinker. Most leaders think of themselves as deep thinkers, but are they really? How many of them really know or understand the intricacies of their business? Some take a “fake it until you make it” mentality, brushing over technical details or not truly understanding the competitive landscape, hoping that others in the organization will explain. We’re not saying that every leader has to master at a molecular level the products or services they provide. However, versatile leaders must think deeply about what makes an organization tick and its different capabilities and assets.  Mastering the details of a company’s business might seem a daunting task for a CEO running a high-tech or biotech company, especially if the CEO rose through the ranks via finance or marketing. Yes, a formal education in a particular discipline certainly helps, but the lack of one shouldn’t discourage a leader from buckling down and absorbing the intricacies of the business. The key is to be constantly curious.
3. Know when to speak up.  A third—and one that has taken on increasing importance—is having the skills to communicate where a business stands politically, socially, and on environmental issues.  Leaders know that these situations sometimes create tough trade-offs where they must forgo lucrative opportunities that are not consistent with their companies’ moral compass.  It’s tempting to keep silent and hope the problem disappears. The world no longer works this way, however. Staying silent all the time is no longer an option in a world of social media scrutiny.  CEOs should take a public stance on a topic only when it is both relevant to the company and authentic.

3 key takeaways from the article

1. Today’s leaders must run their organizations while coping with a growing and shifting number of challenging externalities, including supply chain disruptions, inflation, political polarization, and global unrest. The increased rate of technological change and Generational differences are also adding to the complexity.
2. Some of the most innovative and creative people in history succeeded because they were versatile. They were able to master more than one discipline and then combine them to forge new ideas and inventions. Why is being a versatile CEO so important? Because it can help leaders effectively engage with employees and other stakeholders and make a big impact on the bottom line. 
3. How today’s business leaders can similarly turn their diverse experiences into meaningful outcomes?  The ability to assume different operating roles, garner deep knowledge about one’s business, and having the skills to communicate where a business stands politically, socially, and on environmental issues are the three important elements of being a versatile leader.

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Topics:  Leadership, Versatile Leader, Curiosity, Learning, Adaptability