The best leaders are competent, know how to connect with people, and think systematically.
One topic of conversation in our CEO peer groups is, “What are the common traits that great CEOs share?” This is a trick question because someone will undoubtedly point out something you missed whenever you make a list like this.
Fair enough. However, throughout my career, I have had the privilege of listening to and working with thousands of CEOs. I’ve also written a book, Great CEOs Are Lazy, based on those experiences. I’ve found that every genuinely great CEO I have encountered shares the following five traits: integrity, competency, compassion, learning, and systemic thinking.
Let me explain what I mean by these five attributes.
- High Levels of Integrity
The great CEOs I’ve known have all had high integrity and moral authority levels. They’ve always done the right thing in the heat of the moment and treated people with respect. When leaders demonstrate this moral authority, people want to follow them. By contrast, I’m sure you can conjure up a litany of CEOs who acted without integrity, often taking actions that benefited only themselves at the expense of others. This behavior has a sneaky way of catching up with people and taking them down in flames.
2. Competency
Great CEOs are very good at their jobs. They’re not only intelligent but have also done the work and earned the authority to speak. You can’t earn this kind of reputation by getting an MBA. You also can’t train for it. It comes from putting in the time to become great at what they do and an expert in their field. As a result, people want to work for and follow these leaders. People want to learn from them—including their peers.
3. Compassion
We all understand that the goal of any business is to grow and make money. But we also can’t forget that companies are a collection of people. That means great CEOs understand the critical importance of bringing a human element into the business. A great example is how a leader gives tough feedback, as discussed at length in Kim Scott’s book Radical Candor. Scott talks about how great leaders find ways to provide direct, compassionate feedback. We have all experienced the flip side of this coin: someone chewing us out at work. That kind of boss is considered a jerk—and no one wants to follow a jerk. In my experience, it’s those leaders who combine competency with compassion into charisma.
4. Learning
Put simply, great CEOs are learners. They constantly strive to learn new information and then find ways to incorporate those insights into their business. As I discuss in my book, this might be one of the most critical hats any CEO can wear. That’s because business changes so quickly. Think about it: are you even doing the same thing you went to school for? Or consider how your company has changed in just the past five years. That’s why the ability to learn new material and, just as critically, build that in your business is such a critical trait for a CEO. They have a thirst for learning. It’s also easy to see what happens to CEOs who refuse to learn new things. They will directly limit the lifespan of their tenure on the job and potentially the viability of the entire business. If you’re not learning and growing, you’re dying.
5. Systems Thinkers
The fifth trait that every great CEO possesses is understanding how the various aspects of their business interrelate and fit together. They know how their market works and the cause-and-effect it can have on their business. Thinking in systems allows these CEOs to think and act strategically. They understand why certain elements might not work and the areas where the company can improve, both in the short term and over a much larger time horizon. Great CEOs often earn a reputation for positioning their businesses to take advantage of future opportunities rather than becoming victims of future tectonic shifts.
Strive to be Great
As I said earlier, this list isn’t comprehensive. But if you can strive for excellence in these five traits, you, too, can walk the path of becoming a CEO that takes your organization from good to great.
