Worth taking a look at NYC mayor-elect Bill De Blasio’s transition web site. It is very transparent and user-friendly. You can apply for jobs, review who the transition team is, send an idea. volunteer, or read blog postings. It is a great idea that matches with what he promised in the run off. Nice fit. Transitions are important times to set the tone and style of the incoming individual or executive. The large photo on the home page with De Blasio reaching out to constitutents sends the right message that he aims to be a man of the people (I think he said “we all rise together”). How it turns out will be another story but for a start, it’s a good one. CEOs should consider this transition site as a good way to mark their first 100 days internally.
The pendulum is always swinging when it comes to CEO reputation. All of a sudden, there’s more frequent discussion about empathy, humility and the softer side of things. I have mentioned this trend a few times already. Today there’s an article in the WSJ about a new crop of boring CEOs in the financial sector. Boring with a small “b.” Underneath it all is the desire for boards to hire CEOs that sport no controversy by how they behave. These boring CEOs don’t necessarily command big bonuses (one CEO refused bonuses til 2015). They give eye-rolling, yawn-inducing presentations, focus on words such as integrity and stewardship, work well with regulators and are employee motivators behind the scenes.I bet that they also focus primarily on their company reputation and less on their own reputation. I liked the example given of how one CEO had to play CEO-for-the-day as a final test. “The candidate had to give a webcast presentation and get ambushed by actors dressed as television journalists, among other tests.” The article ended with a warning of what we can expect from our future CEOs: “Boring is the new black.” I give it three years and we’ll be back to the charismatic CEO winning the day. Maybe not.
CEOs and other executives coming onboard face many challenges. Egon Zehnder recently surveyed international executives about the transition process and one of the findings is that 57% said that it took six months or more to successfully transition to a new position and make full impact. 43% said it took 3 months or more which is about the first 100 days. Realistically, it takes about six months at least. The results are probably different depending on whether the executives comes from inside the organization or outside.
And no surprise here, a minority of executives (30%) had a good transition integration in their new positions. When they did get onboarding, over 80% said it was beneficial. They’d like help with navigating the internal politics and networks (56%) and obtaining insights on the new team they are taking over (41%). It is always the softer skills that need the most support when executives transition to new positions.
How executives make the transition impacts their reputation. Those first impressions in the first 100 days or so are extremely sticky! Therefore, you might want to use social media internally to reach as many people as possible, depending on the culture you find yourself in. But reputations are created when the cement is wet so be cautious and move smartly.
I had heard of a new CEO listening tour but to me, this was a first. JCPenny is running a social media Apology tour. We’ve all heard CEOs apologize for one thing or another and we’ve all worked in companies where a new CEO visits different employee facilities to meet and greet and hear what is on people’s minds. But JCPenny now has a new campaign on TV that apologizes for letting customers down and thanks them for coming back. If you recall, the former CEO Ron Johnson from Apple fame was booted out when his plan failed, possibly because of the elimination of coupons which drove customers into the store. The former CEO, Myron Ullman, was asked to return and now they are in recovery mode. The two ads say:
“It’s no secret. Recently, J.C. Penney changed. Some changes you liked, and some you didn’t. But what matters with mistakes is what we learn. We learned a very simple thing: to listen to you. To hear what you need to make your life more beautiful. Come back to J.C. Penney. We heard you. Now we’d love to see you.”
“At J.C. Penney, we never stop being amazed by you. How you work so hard without looking like you do. How you make every dollar stretch so far and keep your family so close. So we brought back the things you like about J.C. Penney, gave you new things to explore and now, we’re happy to say, you’ve come back to us. We’re speechless, except for two little words. Thank you.”
But back to social media….using the hashtag #jcplistens, JCPenny is in response overdrive from what I saw on Twitter today. They are in constant contact with its Twitter-ites. Every customer or tweet seems to get a personal and speedy response asking to help out, mentioning they will share the feedback with the team if something was amiss and thanking customers for comments. As pointed out on Business Insider, they even told people when they were retiring for the evening. On its Facebook page, JCPenny is polling fans about their favorite brands that they want back after having been cut by the former CEO. And it looks like they are bringing back St. John’s Bay, a favorite. So they are listening hard.
You’ve got to hand to them. They’re trying. And social apology tours are a smart redemption move.
As you already know, I am keenly interested in how CEOs manage their tenures. In my book on CEO reputation, I referred to the various stages of a CEO’s tenure as the seasons of a CEO. When I wrote it several years ago, it started with the Countdown period (pre-announcement), the first 100 days, the first year, the middle years and ends with the last 100 hours and legacy-setting. Since then, I have continued to follow CEOs closely but have been particularly fascinated by how CEOs can use social platforms to build their companies’ reputations and to some extent, their own. That is what I explained in this new article on CEOs getting social in their early tenure. (See also Weber Shandwick’s Socializing Your CEO II)
Surprising to me, despite billions of people communicating and socializing online, little has changed in experts’ advice to CEOs or other executives on how to navigate their early tenure by taking advantage of social tools. In three separate research investigations on how CEOs spend their time by Harvard Business School, the European University Institute and the London School of Economics, and Fondazione Rodolfo Debenedetti, the words “social” or “digital” did not appear once in the nearly 30,000 words written. Management consultants’ white papers on CEO transitions reveal little attention to how to effectively use social platforms. I have about 15 articles with smart advice on CEO successions and transitions that I send to new CEOs and not one mentions using social media. Further still, an online search of the most relevant 30 hits for “how CEOs should use social media in their first 100 days” does not retrieve a concise blueprint whatsoever. Instead, the mentions consist of lists of Twittering CEOs, reasons why CEOs don’t use social media, events and primers for getting into the social game, articles written by CEOs of digital agencies, and do’s and don’ts for CEOs who use social media.
Social media should be incorporated into new CEOs’ early playbooks. Whether CEOs are communicating, engaging in two-way conversation or simply listening in, social media platforms should be gradually adopted. As technology increasingly permeates all aspects of business and society, CEOs cannot afford to be out of touch with their cultures, how their products or services are being received and what their competitors are up to. Moreover, as the next generation of technology-literate CEOs start taking office as 77 million baby boomers leave the stage, being socially-literate will become the norm, not the exception.
For these reasons and because all these management consultants seemed to be overlooking social media as a leadership tool in their early CEO days, I wrote this article titled Get Social: A Mandate for New CEOs. It just appeared this week on MIT Sloan Management Review’s nicely redesigned Social Business site. Please take a look if you are a new CEO and getting the social bug! Or if you are advising CEOs to jump on the social bandwagon even a little. I firmly and proudly believe that this might be the first (or among the very first) articles on how and why CEOs should be social citizens at the start of their tenures and not wait til their seasons come to an end. There are some great examples from CEOs and presidents of companies such as Aetna, Etsy, GM, MassMutual, Best Buy and BAE.
Boston Consulting Group issued a new report about debunking the myths of the first 100 days. It is worth reading if you are a new CEO. Several facts are worth sharing here however and I already dropped some into my presentation on steps CEOs should take in their First 100 Days. Since I wrote a book on the various stages of CEO tenure and how CEOs build reputation from day one to the very last hour, I try to update it as often as I can to keep up. CEOs have to keep up too because their first 100 days provides them with less time than ever before to get it right.
In one sidebar, the article describes how the CEO job has changed due to the growing complexity facing the modern day CEO. BSG found that organizational complicatedness (their word) has risen by a factor of 35 compared to 1955 (when the Fortune 500 was first created!). Many of these changes we already feel but BCG attaches facts and figures to these changes which are good to have.
Far more complex world for CEOs
• Number of performance requirements is 6X more than in 1955. Then, CEOs were measured against 4 to 7 KPIs vs. the typical 25 to 40 KPIs now.
Far more scrutiny for CEOs
• Many more stakeholders are now watching every step that new CEOs take These include activist shareholders, board members, regulators, lobbyists, online pundits, NGOs, consumers, media.
Far more dispirited workforce
• New CEOs are starting when falling employee engagement levels have dropped as much as 14%.
• Among U.S. employees, job satisfaction plummeted about 60% in 1990 to less than 43% in 2010.
I truly believe that the disengagement of the workforce is one of the biggest challenges facing CEOs. And what CEOs do in those first 100 days can make or break their tenure’s success. This is why I believe it is time for new CEOs to get a bit more social, like online!~
When new CEOs start in their jobs, their early actions or what they say at their first retreats with the senior team are memorable. Everyone is on high alert and wondering if things will be different, how their new CEOs will establish legitimacy and set a new tone. So my CEO First 100 day antennae were up and ready for incoming signals at our first senior team meeting with our new CEO. It was a great meeting, lots of discussion, priority-making and theme setting. But what pleased me most was what I would call establishing a CEO signature. Sometimes it could be as simple as handing out books to the team that they should read, inviting certain types of guests or inviting new people to the table. Everything matters because everyone is reading the tea leaves — what does this mean? what signal is he/she sending?
So I was pleased when our new CEO, an insider, began the meeting reading parts of an email that someone had sent him earlier that morning about a meeting with a potential new client. The email was about the 6 reasons to love my company, Weber Shandwick — Smart people who respond even when they are insanely busy, a core group you can always depend upon and never let you down, knowing what great looks like, pride in the people in the room with you and share the company name on their business card, our new business people who always have your back 24/7, and colleagues who always set the bar higher. Then later in the morning, our new CEO read another email he had received from a major business publication praising the firm on their responses to interview clients for a story. He wrote that he just had to let our new CEO know that he has never seen a pr firm respond with such rapidity, thoughtfulness, thoroughness and smarts.
At that moment I decided that this had to be our new CEO’s signature….sharing these kinds of notes with the team. First, it felt great hearing what people had said about the company and second, it was all about the work and colleagues. It just felt so right. I immediately thought of how President Obama reads 10 letters a day to see what people are thinking. I had just read a note he had sent to a young girl who has two dads and asked the President about being teased at school and asking him what he would do. The President wrote the little girl with his advice.
CEOs must get amazing notes — good and bad. It makes sense to let everyone hear how the firm makes an impact in unexpected ways that do not get shared every day. There was some drama in the emails being read which I loved. It deepened the sense of a shared experience and community which is what a CEO should try to instill, especially at the outset.
Just caught up with my November HBR. There is an excellent article by the CEO of Siemens, Peter Loscher, on how to use a scandal to activate change in an organization. There is a section in the article on Loscher’s first 100 days, a favorite topic of mine. He says that he was the first chief executive at Siemens who came from the outside and mentions how it actually worked to his benefit because he brought an outside perspective to his early start.
In the article, he mentions that one of the things he wanted to do in year one (post 100 days) was to get the organization more focused on customers. And then he proceeded to explain how he did it. I thought it was such a cool idea that I wanted to share it. Here is what he said:
“In my first year, I tried to find other ways to emphasize to the entire organization that customers should be our primary focus. Once a year, our top 600 or 700 managers gather for a leadership conference in Berlin. Before my first one, in 2008, I collected the Outlook calendars for the previous year from all my division CEOs and board members. Then I mapped how much time they had spent with customers and I ranked them. There was a big debate in my inner circle over whether I should use names. Some felt we would embarrass people, but I decided to put the names on the screen anyway.
The rankings were a classic bell curve, with most people in the middle. I was number one, having spent 50% of my time with customers. I said to the people at the leadership conference, “Is this a good sign or a bad sign? In my opinion it’s very bad. The people who are running the businesses should rank higher on this measure than the CEO.”
I put the rankings up again in 2009, in 2010, and in 2011. And now things have changed. The curve has shifted. Some people have passed me, and most are near me at the top of the distribution—because everybody knows this matters and that names will be up there at the next leadership meeting. With this simple approach we have achieved a much, much stronger emphasis on customers in the top management echelons.”
What a smart way to get management focused on being customer-driven. As he concludes, “But if you want to change a big, complex organization like Siemens, you have to make your agenda known, and you have to communicate in simple terms.” I’d say taking stock of everyone’s calendars and tallying up the time spent on customer activities, sent the right message, clear as a bell.
In an article today on the academic dream team that consulted with President Obama’s team, a few lessons are shared that should be helpful for the public sector and CEOs or other executives. The group of behavioral scientists who were unpaid advised that voters focus on two characteristics in choosing a president or leader – competence and warmth. This is especially good advice for new CEOs coming into office to hear. The article states that Romney had the competence factor working for him but less so the emotional warmth factor, particularly with all the negative advertising that many people saw. Clearly, CEOs have to project both factors to gain support from their followers.
Another lesson to be learned that was shared in the article is useful for companies facing crises (who isn’t?). The social scientists that made up the dream team advised the Democrats running the Obama campaign that when it comes to neutralizing rumors, it is best not to deny the charge but to affirm a competing one. The example given was how the rumors about President Obama being a Muslim stuck over the long term but their advice (and probably well taken) was to counteract that rumor by asserting that Obama is a Christian. I do recall hearing that. Good advice that can apply to corporate leaders faced with hearsay and wanting to deflect innuendos.
What a day for female CEOs. Marissa Mayer becoming the CEO of Yahoo! and lo and behold, she is having a baby. Talk about agita. I thought it would be interesting to see how many mentions of pregnancy came up when searching for Marissa Mayer and Google or Yahoo! So I started by first looking at Marissa Mayer and Google or Yahoo! There were zero mentions on the days leading up to the announcement (good to hear that there are some secrets in this world) but on the day of the announcement (7/16), there were 125 mentions and 449 one day later (7/17).
What about when we add on “pregnancy.” On Day 1 and 2, there were 70 mentions of Marissa Mayer and Yahoo! and pregnant or pregnancy. It felt like that is all I read about so I was surprised that there was not more.
However, what would happen if we looked at Marissa Mayer and Yahoo! and pregnant or pregnancy compared to Marissa Mayer and Yahoo! and “qualified” or “qualifications” or “qualification”? Oops, there were only 9 mentions. So the PREGNANCY of new CEO Mayer at Yahoo! outweighed mentions of her QUALIFICATIONS about 8 times over. That sounds like a story in itself.
As my colleague Liz said to me, “She really blows the first 100 day CEO model out of the water. Maybe this is a new book for you to write, Leslie. Your new model can be segmented by trimesters.” That certainly got me laughing.