12 Habits of Highly Effective CEOs
The habits that separate great CEOs from average ones

There are many books about leadership in general, but there are also plenty of books about being an effective CEO. These books have some important insights for anyone who wants to take their company to a new level of success. For some people, these might be tough truths, but it’s a lot easier than it sounds when you know what you’re doing.
In the last 15+ years of working in HR and both directly reporting to and working alongside many CEOs across many industries, I’ve closely followed the traits and habits of what makes a highly effective CEO; basically following what Jim C. Collins discusses in his classic tome, Good To Great.
There are behaviors that most people can adopt, that can help them get where they need to go. Let’s take a look at nine habits common to effective CEOs.
1. Have a Great Team
It makes no sense for the CEO to get top dollar if the people who work for him or her aren’t also highly compensated. If your own employees can’t make ends meet, then why would you expect anyone you hire to have better results? If you have good people working for you, then they’ll work hard to bring in money. This should be your first step, and it’s a lot easier than you think. It’s not even that expensive. All it takes is some planning, and a little bit of time reading all of the information on a relevant and credible website about finding, assessing, and hiring top candidates at low cost and risk.
2. Run a Tight Ship
The most important thing any employee can do is to do their best and work hard. This is the number one rule of business, and it applies to you when you’re in charge and when you’re not. Any time you hear about someone who has left a good job for a bad one, it’s often because they didn’t think through the consequences of leaving before making the move. If you’re going to hire new employees, be sure that your existing ones know what’s going on. Not only will this make your company better with regard to your employees being productive and happier; but it’ll also improve your bottom line as well.
3. Setting the Tone
Set the tone for your company by making sure that you, your staff, and any managers you have understand it. You won’t do this by telling them, but by showing them. If they’re watching you, they’ll know exactly how to behave in order to keep their job. The best way to do this is through example and leadership. When everyone else is working like crazy and staying after work, be sure that you are too. Now isn’t the time to slack off; now is the time for everyone else to see what it takes to be successful.
4. Take Responsibility
You need to take total responsibility for everything your company does or will do. Many CEOs will give their employees a hard time, especially when something goes wrong. The best CEOs are able to accept what their employees do, and more importantly, what they don’t do. This keeps everyone on the same page and makes people want to work for you. That being said, there are times when you’ll be forced to put someone on probation or fire them; making sure that your employees know this is something that you have to do as part of your job makes you look a lot better.
5. Develop Other Leaders
Anybody who has ever been a leader knows that it’s not easy, and it requires a lot of work. If you think you can be the only leader in your company, then you’re probably fooling yourself. It’s much easier to develop other leaders so that they can take over some of your workload when you want to step back from it, than it is to convince an old dog that it should learn new tricks. Make sure that the leaders working for you understand their roles and how to run their departments. This will make your job as a CEO easier, and it’ll also earn you the respect of anyone who works for you.
6. Hire Smart
It’s impossible for one person to do everything required by a company. That’s why you need to hire the best people you can. That doesn’t mean that you have to throw a lot of money at them; all it means is that you need to interview carefully for positions and make sure that your managers are doing the same. The best way to figure out if someone is capable of doing a job is by having them do part of it for free. If they can’t seem to get it done, then don’t waste your time or their money by hiring them.
7. Cut It Out!
The easiest way to cut expenses is to be smart about cutting out unnecessary ones. Don’t hire people who aren’t as capable as you are, don’t work on projects that’ll cost a lot of money, don’t carry out unnecessary tasks, and don’t spend a lot of time on things that aren’t important to your company. If you want to become an effective CEO, then you’ll have to take control while at the same time giving your employees a chance to be successful.
8. Take Care of Your People
The most important thing in your business is to make sure that your employees are happy and productive. This means that they’ll work harder for you when they know you care about what they’re doing. That’s a lot easier than you might think. All it takes is a little bit of planning and some good communication with your employees. The best way to do this is by making sure they understand the vision of their company, and that they know how they fit into it.
9. Set Goals
The goal of every business should be to create a profit; this means that every employee in your company should also be focused on making money for themselves. No matter what type of industry you work in, there will always be something you can improve upon. Many of the best companies have given employees a stake in the business. This makes them more interested in it and makes them want to do their best in order to make more money. When you want your company to grow, then you need to make sure that your employees are making the most money possible for you.
10. Keep It Simple
Don’t become a CEO if you can’t explain your company’s vision to someone else in just a few minutes. If you can’t do this, then you’ll have trouble keeping things clear for yourself as well as other people. If things aren’t clear, then they won’t be clear to anyone else either; that means they’ll probably get lost or confused and make mistakes on the job. Take some time to think about what you want your company to look like, and then make sure you’ve got it down in writing. Make it simple enough for everyone to understand, and then make sure that you can articulate your vision.
11. Try Something New
If what you’re going for is success, then do everything in your power to achieve that goal. Don’t try new things unless they’ve worked for someone else; only then will they work for you too. Many of the best businesses have become successful by trying new things before they were commonplace. If you want to become a great CEO, then you need to be willing to try new things and see where they take you. If you’re not willing to do this, then you’ll never reach your full potential and your company will never be as successful as it could or should be.
12. Be Authentic
Success is largely based on one’s personal character. This means that even if you’re doing your best, all it will do is get you in people’s way, which can be a lot more dangerous than being severely behind. The best CEOs make sure that they don’t do things for the sake of being remembered; instead, they see what has to be done as it really needs to be done. They’re determined to succeed, and this determination shows in every part of their company; it’ll help them become successful as well.
In order to be a highly effective CEO, it’s important that you have a vision for what your company will look like and how it’ll operate. In addition, you need to be willing to take risks when needed and not give up on your company’s success. A highly effective CEO is someone who makes sure they are present at all meetings and open to feedback from others, which makes them a good leader in the first place.
“Leaders get out in front and stay there by raising the standards by which they judge themselves — and by which they are willing to be judged.” — Frederick W. Smith
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