Why CEOs Fail?

Despite the continuing controversy surrounding today's corporate executives, leadership (CEO/Chairman) still shapes a company's destiny. Fortune magazine stated that 70% of the time CEOs fail to manage the organization because they can not execute their strategy. And, CEOs fail to execute their strategy because employees are not aligned with the organization strategy. Secondly, the strategy is not changing with the environment. Thirdly, the CEO has been a successful leader and promoted to the top spot (become a complacent leader). Or, the CEO has been recruited by another company.

CEOs need to expose to numerous techniques in helping the organization achieve its goals. However, which or what techniques and when should be applied? Most organizations will use multiple techniques simultaneously (such as: Activity Based / Change / Performance / Process & Value Based Management; SixSigma; Customer Loyalty; Outsourcing; Value Added Services and etc.). But when is the right time to execute on the right techniques?

We can understand business organizations, the failure can be avoided if the CEO and the employees understand and conform to the structure of the organization. The Board of directors of a modern corporation is a more primitive and different structure from the previous organization and CEOs must use different techniques to work with the boards and the companies. In the absence of knowledge, people do the things that have worked for them in the past, and when they fail to work, simply do the same things more intensively.

But new CEOs have planned everything and desperately want to be successful. When they arrive in a new organization, they are receptive to guidance they believe may keep them from failing.

Many reasons lead to the success and failure. We will find out in this blog.