Dan Schulman, CEO of Virgin Mobile USA says: “The days up to where you take the job are some of the most important to being successful. Day one on the job better not be day one where you’re putting your action plan into place; it should be well under way by the time you get there.”
Ascertaining priorities
Establishing and maintaining the right priorities is one of the greatest challenges a new leader faces. One of your goals in the countdown period is to shape events before they shape you.
During our research, we asked CEOs how they thought they would spend time during the first 100 days and compared that to how time was actually spent. While most wanted to spend the bulk of their time with senior management, employees, customers, the board, investors, analysts and the media respectively, in reality a large chunk of time was spent addressing the media and investors.
CEOs list absorbing information; defining challenges; senior management team assessment; winning employees’ trust; and emotional preparation as the most important actions for getting a good start.
While countdown periods differ, the common goal is to learn as much as possible about the new company. Dave Peterschmidt, CEO of Internet security company, Securify says: “You shouldn’t expect to walk in with a strategic plan but you should walk in with a strategic process.” This involves diagnosing challenges and opportunities; identifying key constituencies; forging alliances; and building relationships.
Insider vs outsider
If you’re an insider taking over the reins, your knowledge of the company and its culture gives you a running start. These advantages, however, are counterbalanced by two drawbacks: you don’t have the clarity of an outsider’s perspective and you will have less permission to stir things up.
CEOs coming from the outside face different opportunities and challenges – while appointing an external CEO signals change, it doesn’t imply acceptance of that change.
A newcomer generally has a honeymoon period in which to establish credibility and learn the company’s business and culture. You need to understand how the management team works, how
the company operates, where it’s been and where it’s headed – and how your abilities fit into the mix. Immersion is essential so use the countdown period – regardless of whether you have months or days – to prepare yourself as much as possible. Don’t draw up an action plan that is too well developed. It may be wrong or, you may battle to get buy-in.
The importance of having a vision is debatable in the early days despite media fondness for such statements from high profile leaders. Indeed, crafting a vision statement in the first 100
days, may be premature and not the best use of your time.
IBM’s Louis Gerstner made this clear when he took over saying: “There’s been a lot of speculation as to when I’m going to deliver a vision of IBM and what I’d like to say to you all is
that the last thing IBM needs right now is a vision.”
Gathering resources
Get to grips with the company’s business model – how it makes money – and identify who has the potential to help you.
Bob Nardelli, CEO Home Depot, says: “You’ve got to get as good a grasp as you can of the business, the industry and the market. If you only understand one of those three, you can make pretty dumb decisions. You have to get your arms around all three elements.”
You also need to assess your own skills and determine whether you have the knowledge or the network to meet the challenges – and where you may need help.
Anne Mulcahey was not groomed for, and never expected to be, CEO of Xerox so, when she was appointed to the top spot, with the company $17.1 billion in debt, she knew she had to get financially wise fast. She turned to the director of corporate financial analysis to teach her what she needed to know.
Realizing that he would need a partner when he took over at Kinko, Gary Kusin made it a condition of his becoming the organization’s CEO that he could bring with him the head of strategic planning from his previous company.
Shape up
Making sure you are in good physical shape to handle the first 100 days is essential. “You have to take care of yourself,” cautions Jon Miller, chairman and CEO of America Online.
Dan Stone, CEO of Space Holdings, is a firm believer in exercise, and cycling is integral to his ability to perform. “I start with a bunch of problems on my mind and after 10 miles, I’ve solved many of them and in a more creative way than if I’d been at my desk. It’s a support system for the stresses of the job.”
It’s important in the countdown period to make deposits into your ‘personal bank account’ to have reserves to draw on later.
Expect the unexpected
One of the reasons you’ll need to be in top shape is that sooner or later you’ll be faced with a tricky problem. It helps to have someone to bounce ideas off; someone who understands the context of the challenges; and someone who’ll point out your faults. It may be your spouse, a friend or colleague, a consultant, banker or industry analyst. Many new CEOs choose a member of the board’s search committee or the consultant who led the search. Having help increases your chances of success.
Conclusion
The countdown process varies from person to person and from situation to situation, but in all cases it’s the time in which you create the conditions that will make you most effective in your role.
It is the time to prioritise your to-do list, gather your resources and ensure you are physically and emotionally ready for the job.