Why do some CEOs with brilliant track records prior to their appointment as CEO, succeed, and why do some fail? David Fubini, senior lecturer at Harvard Business School, shares his research on why leaders succeed or fail in his new book, “Hidden Truths: What Leaders Need to Hear but Are Rarely Told” published in December 2020. People strive for years to develop special skills and knowledge and a track record of success, to reach a point where they can be promoted to the CEO of a company. Unfortunately, what is shocking for most new CEOs, is that the experience that prepared them for the role as CEO, is not helpful once they get there. In his book Fubini identifies four key pieces of advice for business leaders.

AVOID HALF-TRUTHS AND MISPERCEPTIONS: Fubini quotes a former admiral who said he knew two things with certainty when he came onto a battleship: He was never going to get handed a cold cup of coffee, and he was never going to hear the whole truth. People coming into a new role will struggle because they get told only a portion of what they need to know. You have to be open and candid and say: “Look, tell me what you are not telling me”. Some CEOs will perform a double-check on what they have been told. They will go back and have confirmative conversations with others. Some CEOs will go a few layers below the senior management level and engage middle management, who are often willing to be absolutely candid and have a deeper understanding of what is really going on. Peter Drucker once remarked: “The most important thing in communication is hearing what isn’t said”.

START CHANGE MANAGEMENT BY CHANGING THE MANAGEMENT: There is enormous value to changing management because it unleashes frozen organizations and brings a change of perspective. The broader body of the company often welcomes the change. There are lots of examples where people come in and get told: “We cannot do this. Let me tell you why this did not work”. People get stuck in a status quo mindset. But you do not have time for that – change is often a matter of speed. There is also sometimes a belief that you do not want to change management because you will lose the institutional knowledge that exists there. But the truth is, the institutional knowledge does not rest with the people who are directly reporting to the senior management team. It rests with the people below it.

USE PSYCHIC REWARDS, NOT JUST MONETARY ONES: For the employee money is critically important only up to a point. Real motivation comes from an emotional connection that you feel – either that you are more highly valued than someone else, or the ego enhancement of being told how great a performer you are. If I tell you that you are highly respected and that your colleagues appreciate what you are doing, you will break down walls to be successful. Or it could be more informal, by giving you recognition in a speech in front of your peers, or in an all-staff email. Those are the little things that leaders should do, but do not do enough. “The worst mistake a boss can make is not to say, ‘well done’.” John Ashcroft.

KNOW WHEN TO LEAVE: People always feel they have one more act. In reality, very, very few people are wildly successful for an extended length of time. So, you want to find an inflection point, where you can leave while you are at the apex, not past it. One clue is if you are starting to have trouble retaining really high-performing people, who are your natural successors. They might feel their way is blocked by you hanging around. That is a true warning sign that maybe it’s time for you to move on and do something new.

HAVE THE “BEST EARS IN THE COMPANY”: In another book, “Five Ways to Keep Connected” Fubini tells the story of Bill Russell, one of the greatest players in National Basketball Association history when he played for the Boston Celtics. His coach was the legendary Red Auerbach. Russell recalled that Auerbach would have conversations with each player, but that he tailored his style of communication to the needs of each player. His goal was to hear what each player needed and adjust his coaching accordingly. Russell said that Auerbach had “the best ears in the NBA”. Ask yourself: “Do I have the best ears in my company?” If not, you need to try harder to develop this ability. It will also help you to fight the sense of isolationism that comes with leadership roles. It gets lonely at the top, but the view is splendid.