3 (Hidden) Costs Of CEO Neglect

I was recently working with a midsize business owner/CEO who wanted to know if I thought we were headed to a recession or if what he was hearing on his favorite news show was true about how it wasn t true and I said...

TIME OUT."

They looked at me and it was silent for a few seconds, and I said, would you be open to a discussion about something? They said of course! I said, What really is the #1 thing on your mind that we should be really talking about? The person looked away, took a deep breath, and said, I am really stuck trying to decide where to prioritize my organization given all the uncertainty I am hearing about. They then rattled off several ideas that all sounded like great ideas to pursue to grow and the individual was very excited and passionate about all of them. They then shared all the risks of changing but they know they need to.

Sound familiar? It led us down a whole different path that ultimately uncovered what so many leaders struggle with when there is so much uncertainty.

When it comes to small to midsized business owners/CEOs, there are typically three reasons I see that lead to them stalling out in their growth.

Reasons Why CEOs Get Stuck In Their Businesses

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A. They are paralyzed and work to rationalize why they have not changed anything they are doing, knowing that they need to. I hear things like, I am too busy, Do you know how hard it is to find good help, I am still working on sizing the market, I think this or that, Do I invest, retrench, and just ride it out and hope for the best?

B. They don t know where/how to begin, or stick to what they know. This often explains why they use the phrases above as excuses for not moving forward.

C. FOMO (fear of missing out). If they were to prioritize they could miss out on something else so they keep all options open and see what happens.

The problem with all three reasons above is they risk creating financial, operational, and emotional issues that ultimately could take the company down—and result in employees losing jobs.

The Costs Of CEO Neglect: Financial, Operational & Emotional

CEO and other executives talk about their business plan during a meeting

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When CEOs fail to address their reasons for getting stuck, A LOT can go wrong. Financially and operationally, there are potential revenue and profit declines, market share losses, and higher costs. Emotionally there will be decreased morale, increased stress, decreased trust, and anxiety without a clear vision and an effective communication plan.

FACT: The #1 mistake that small and midsize business owners make during uncertain times is failing to adapt quickly enough to changes in the market or consumer behavior.

This can manifest in a few different ways:

Sticking with the status quo: Some business owners may be reluctant to change their business models or processes, even when it becomes clear that the old way of doing things is no longer effective.

Clinging to familiar methods or routines: Usually, out of fear of the unknown, even as the business suffers.

Cutting too many corners: Conversely, other business owners may panic and overreact to uncertain conditions by making drastic cuts across the board.

Trying to save money in the wrong places: They may lay off too many employees, reduce marketing and advertising budgets, or stop investing in new products or services altogether.

Failing to communicate effectively: During times of uncertainty, it's crucial for business owners to communicate clearly and frequently with employees, customers, and other stakeholders.

Hesitating to share bad news or admit to uncertainty: Holding back on the truth can lead to confusion, mistrust, and frustration.

Over-communicating: Sharing too much or too vaguely may also create confusion and uncertainty.

The decisions above may provide some immediate relief, but they can hurt the long-term health of the business.

How CEOs Can Properly Assess Business Opportunities & Challenges

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Here are ideas on how to assess the various opportunities and challenges you are facing:

Conduct a risk assessment: A risk assessment can help you identify potential risks and opportunities that could impact your business. You can do this by analyzing your business processes, reviewing your financial statements, identifying potential legal or regulatory issues, and assessing your competition. Once you have identified these risks, you can prioritize them based on their likelihood and potential impact on your business. Solidify your current business foundation first and foremost!
Develop a strategic plan: A strategic plan can help you prioritize opportunities that align with your business goals and objectives. This plan should outline the steps you need to take to achieve your goals, including the resources required and timelines for completion. By prioritizing your opportunities, you can focus on those that have the most potential to drive growth and profitability.
Seek expert advice: As a business owner/CEO, you may not have all the expertise required to identify and prioritize risks and opportunities. Seeking advice from experts such as consultants, lawyers, accountants, or industry peers can provide valuable insights and help you prioritize your risks and opportunities effectively. Joining peer advisory groups to bring outside perspectives in a confidential/safe place can confirm your decisions, catch risks you didn t see, and/or provide new ideas for you to consider.

In summary, having a solid business foundation is crucial for a CEO before pursuing new products or services because it ensures they have a clear understanding of the market, and provides financial stability, operational efficiency, risk management, and strategic planning abilities.

Overall, prioritization is essential for small/midsize business owners to effectively manage their workload and achieve their goals. It's important to identify any barriers to prioritization and work to overcome them to ensure that tasks are completed in a timely and efficient manner.

If you want to connect with me to discuss further or provide other insights please let me know at [email protected] or connect with me on LinkedIn.

From Your Site Articles

SMART Goals For Job Seekers

There are two perspectives on SMART goals for job seekers, one from the viewpoint of the activities you perform as part of your job search, the other focused on understanding the expectations of a position you’re considering.

SMART goals, originally attributed to Peter Drucker, has been interpreted with various modifications and additions, but generally refers to goals that are Specific, Measurable, Attainable (Achievable, Actionable), Realistic (Relevant), and Time-Bound (Time-Based, Timely). There’s strong agreement on the “Specific” and “Measurable,” with several variations of the “__ART” elements. Specific, Measurable, and Time-Bound are generally agreed upon as core elements.

For The Job Search

Man writes down his goals while looking for a job

For job seekers, SMART goals can be a powerful tool to guide the process. While many individuals are familiar with the idea from its common work application, it’s a new—and much-needed—process for many job seekers. And for those unfamiliar with the idea, it can be further complicated by the claim of goals being set for them in their work experience—goals that are absolutely not SMART. So, a job seeker might just set an extremely broad goal, like “finding a new job,” or might set some seemingly more specific goals like:

Revise my resume
Contact my references
Search online for job opportunities
Send thank you emails

While setting some goals, any goals, particularly if they’re written down, is better than not having any goals, these are definitely not SMART goals. More importantly, goals like these deprive a job seeker of the power of having SMART goals.

Research on goal setting clearly demonstrates the power—and the dangers—of goal setting. Goals that are not SMART fail to motivate top performance and/or lead to inaction. Goals that are set too high (not Realistic) frequently prompt a person’s decision to “give up.” Understanding the dynamics of goal setting can be a powerful tool for a job seeker’s success.

Let’s turn the examples above into SMART goals:

Revise my resume – Create a customized resume for each job opening I want to apply for by next Sunday.
Contact my references – Identify at least one reference from my previous employers and contact them within the next month with my resume and information on the jobs I’m seeking.
Search online for job opportunities – Check online for job opportunities at least twice a week.
Send thank you emails – Send thank you emails within 24 hours of an interview to each person involved.

For The Interview

Woman asks a question about goals during an interview

Understanding SMART goals can also be a powerful tool for a candidate to use during an interview. Job postings, ads, and even job descriptions can be filled with generalities and duties that, at best, describe average performance.

A job seeker is frequently asked, “Do you have any questions?” Seize this opportunity whenever given. Unless the following has been made clear to you, ask: “If I were offered and accepted this position, and you considered me extremely successful in my first year, what did I accomplish?” Then probe! And probe whenever you can during an interview when you don’t have clear, specific (SMART) expectations from the interviewer:

Specifically, what do you expect the person in this job to accomplish in the first 90 days?
- In the first six months?
- In the first year?
The job description says the job includes “making sales calls.” How many are considered acceptable in a day? In a month?
- How many of the company’s sales staff regularly achieve acceptable performance?
- How many sales calls are considered “outstanding performance”?
The job description says that the job includes “leading the team.” How many people are on the team?
- How many members are new? Long-time members?
- Is the team facing specific challenges? Problems?
- What resources are available for developing the team? Training? Assessments?
- What’s the time frame for improving the team’s performance?
You mentioned “the usual customer service” responsibilities, could you tell me…
- What does “outstanding” customer service mean for this business?
- What kind of training is provided for customer service?
- What are the customer service expectations in terms of working with colleagues?
- (Somewhat advanced but a good question) Is compensation tied to the quality of service provided by a person in this job?

These probing questions need to be customized for each individual position. But just like the importance of thoroughly preparing your responses to questions about your experience, this is where you thoroughly prepare by 1) researching the company and 2) preparing questions that probe for:

Specific: Are you given answers with clear “action” verbs?
Measurable: Is there a clear measurement (a number) that indicates a performance level?
Attainable: Are the expectations achievable, too low (usually not specific), or unrealistically high?
Realistic: Are the results of the actions specified indicated?
Time-Bound: Are the expectations framed in terms of “when”?

SMART goals can be a very powerful part of a successful job search—and a powerful tool for a job seeker to use during the interview process—if a job seeker learns and practices the process.

The job search process can be incredibly frustrating and stressful, especially if you’re feeling lost, trapped, or burned out in your career. If you’re struggling to find a job that’s right for you, we can help.

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This article was originally published at an earlier date.