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How CEOs Can Improve the Odds of a Successful TenureBOSTON, June 11, 2018 (GLOBE NEWSWIRE) -- CEOs in the 21st century operate in an unprecedentedly dynamic context and find it more challenging than ever to succeed in their role. Some help might be at hand at last, thanks to research from The Boston Consulting Group (BCG). A new report from BCG identifies five components that consistently characterize successful CEO tenures. By cultivating these success factors and combining them flexibly into a strategic “algorithm,” CEOs can now shift the odds in their favor. The report, titled An Algorithm for a Successful 21st-Century CEO, is being released today. The BCG study set out to evaluate CEO success along multiple dimensions. It assessed the tenures of more than 450 CEOs in the US and Canada from the “starting classes” of 2009 through 2011. It involved the use of AI and included in-depth interviews with 14 prominent CEOs and board directors. Of the CEOs who were fully assessed, just 18% eventually ranked in the top tier, as “more successful.” The research team then proceeded to isolate and analyze the distinctive characteristics of that select group and eventually identified a set of five success factors. The Components of Success
These five components gain extra potency when closely integrated with one another. Once refined and combined, they can serve CEOs as a kind of algorithm for setting direction and making strategic decisions, and they could make a successful tenure easier to achieve. The study produced several unexpected findings. For example, according to Katharina Rick, a BCG partner and a coauthor of the report, “it turns out that a CEO’s success is almost entirely unrelated to the starting context. CEOs who inherit an ailing company are just as likely to succeed as CEOs who inherit a thriving company.” Another important finding was that CEO tenures today no longer fit the old paradigm and tempo. As Roselinde Torres, a BCG senior partner and coauthor, puts it: “A pre-millennial tenure could typically be analyzed as a traditional drama—opening act, middle act, final act. That model really doesn’t work well in the 21st century. Today’s CEOs have to pattern their strategic moves very differently, and their tenure looks like a series of overlapping cycles rather than a series of discrete ‘acts.’” Themes and Variations Scattered throughout the report is an array of quotations, providing firsthand perspectives on all aspects of the five success factors. The quotations record the experiences or reflections of the various veteran CEOs and board directors who were interviewed for the research project. The true measure of success for CEOs is not just a set of short-term results: it is about keeping up the momentum throughout their tenure, and even about what happens to the company after their departure. “The improvements that a CEO makes have to be sustainable,” says BCG’s own CEO, Rich Lesser, another of the report’s coauthors. “The complacency trap is real, and CEOs need to sustain a reinvention mindset throughout their tenures and build a diverse, high-aspiration, and adaptive leadership team. We’ve found that the more successful CEOs are very concerned about their legacy—but not out of vanity. The legacy they want is a thriving and self-revitalizing company long after their time as CEO is done.” A copy of the report can be downloaded here. About The Boston Consulting Group The Boston Consulting Group Tel +1 617 850 3783
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