This is the fifth in a series of dialogs between a new CEO and an experienced mentor in dealing with a tough business issue. Follow @2020outlook on Twitter or enter your email address in the right column to be notified each time a new dialog is available for reading and comment. Thank you for your suggestions.
“Many people think that the CEO job is just the next progression after being a senior executive in a business… the CEO job is actually a unique role that doesn’t really have much in common with the other executive roles in a business.”
Joel Trammell
CEO, CacheIQ and Managing Partner, Lone Rock Technology Group
Former CEO of NetQoS, HomeSmart, UST Computers
As they were filing out, Clare walked over to Joel after hearing the latest status from area startups at the Entrepreneurial Association meeting at the Hyatt.
“Joel, I saw you sitting down in front and was hoping to catch you. How are you doing?”
Joel smiled and said, “Not bad. We closed a big deal yesterday that by itself makes our quarter, so I’m pretty happy right now. Of course, only the paranoid survive, so I won’t be celebrating long. What are you up to these days? I heard that you left your SVP sales job not long ago.”
“Yes, maybe you can be too successful. Even though it’s fun when things are clicking, it had gotten a little boring, plus my options all had vested. Since Corey and I have a little set aside, it seemed like a good time for a breather.”
“So what are you doing with your free time?”
“Well,” Clare answered, “we’ve been traveling for a few months. The best was spending a couple of weeks in New Zealand, definitely a bucket list item for both of us. It was great, and I wouldn’t trade for it, but now I’m ready to dive into a new challenge.”
“I’m not surprised you got bored so soon. Do you know what you’re looking for yet?”
“Actually, I need your help. I’m looking for a CEO position. I know I don’t have any experience, but It seems like the next logical step, since I’ve had some huge VP level success running sales and marketing for a couple of companies.”
Joel paused. “You know, it could be right for you, and it might not. In most ways, it’s different from anything you’ve ever done.”
Clare’s eyes narrowed. “Really. You’re sure? I’ve spent a lot of hours interacting with CEOs – you, for one – and the position seems challenging but fairly straightforward. Of course, you know much more about it than I do, given how many companies you’ve led.”
“I’m not saying you don’t have all the right background, because you’ve done some awesome things in your young career. You’re one of the most talented people I ever hired, and I wouldn’t bet against your taking on anything. It’s just important to understand it’s a totally different job from anything else.”
“Do you have time to sit down and explain?”
“Sure.” They moved toward a couple of chairs in a quiet corner of the lobby. After they were seated, Clare waited a couple of minutes while Joel seemed to be collecting his thoughts.
He spoke. “So, I was remembering the first CEO gig I took on. It was at Sirian where I later hired you. While I think of myself as a fast learner, I’ve never worked so hard or been so scared as I was after the board asked me to take over when Dave passed away.”
“Really?” she asked. “When I got there, you always seemed to have it so together and came across as a natural leader.”
“Thanks. I’ve always been pretty good at hiding my emotions – just ask my wife,” he smiled. “But I had no idea what I was getting into when I said yes to the CEO job. For one thing, there really is no blueprint for how to be a good CEO. All the best MBA programs like the one I finished appear to be giving you the right background, but as good as it was, in no way did it prepare me adequately.”
“Wow, I’m surprised you would put it that strongly. Was there one thing in particular that threw you?”
“No, it was a whole constellation of things to get up to speed on. In your case, for example, you’re an expert in driving revenue and motivating sales people, both direct and indirect. But picture being asked to make daily decisions on things as diverse as human resources, information technology, real estate, legal, technology, and so on. You may have been in the room when those decisions were made, but it’s so different when you’re the one that everyone turns to when there’s no consensus, which is most of the time.”
Clare shook her head. “So how did you make the transition?”
“Well, luckily, I quickly figured out I would drown if I didn’t get some help. I asked about the different CEO groups in town and chose one that had CEOs running companies with the same general size and makeup as Sirian. You know how they say ‘it’s lonely at the top.’ When you run Sales, you spend a lot of time passing down what you know, but this is different. I could ask my senior managers about the facts, but I couldn’t hand off the responsibility for making tough decisions. You have to be willing to assume all the responsibility that comes with being the main decision-maker.”
“OK, making lots of decisions is challenging – I get that.”
“It goes way beyond that. You’re constantly in the spotlight, and any mistakes get magnified. You’re responsible for communications with many groups – employees, board members, the press and analysts – lots of people who want to know what’s going on, and you’re the only one with the credibility to deliver the message. In the middle of all this, you have to be sure you’re being fair and balanced in your dealings with all your employees, not playing favorites, and also making sure your direct reports follow your lead. And perhaps the biggest challenge of all – building great jobs for everyone in the organization.”
“So should I go look for another sales leadership job, or just go slit my wrists?” Clare laughed.
Joel looked up. “Sorry, I didn’t mean to get so intense on you. Actually, I think you could be a great CEO. However, I think too much of you to understate how hard it will be. There’s obviously a lot of upside too.”
“Whew, glad to hear it. What are the upsides?”
“For one thing, it’s by far the most satisfying thing I’ve ever done. That may sound silly after what I just described. On the one hand, it’s very difficult to tell how you’re doing at any one point. You have to live with mountains of ambiguity every day, hoping that you’re making the right decisions. At the end of the day, though, there’s nothing like growing a company where new exciting jobs are being created and filling them with people who learn they can accomplish more than they every thought they could. And of course,” he laughed, “the pay’s not bad either. But seriously, the satisfaction comes from much more important sources than the money.”
Clare looked down briefly, then directly at Joel’s eyes. “So tell me. Knowing me as well as you do, what is your best advice for me?”
Joel smiled. “Go for it, and I’ll help you. With this latest company, I have a great team in place and can afford some time, so if you want, I can be available when you find a CEO role in the right company.”
“Of course, I’ll take you up on that generous offer, and thanks for your vote of confidence. While I’ll admit I’m a little scared, I don’t want to end up down the road the regretting that I didn’t give it a shot, and I really do want the challenge.”
“Then you’re as ready as you can ever be. Eyes wide open, as they say!”