CEOs themselves identify 10 major traps for the first 100 days:
1: Setting unrealistic expectations
“The most universal trap for a new leader is wanting to do so much so fast that you over promise and over commit,” Jeff Killeen, GlobalSpec.
2: Rash decisions vs. analysis paralysis
In the first 100 days, new CEOs have more scope for taking action but it needs to be the right action. Sears CEO Alan Lacy says: “If you can get something resolved quickly that is appropriate, get along with it. However, if you just act to act or make premature pronouncements you can set yourself back.”
In an environment that encourages prudence beware of being overly cautious and doing nothing – it could result in missed opportunities and problems spiralling out of control.
3: Being a know-it-all
The danger of know-it-alls is that they don’t know what they don’t know. Pat Lusso knew Lucent Technologies well when she came back to the company as CEO but made a decision to assume she knew nothing. “I believed that before I made my own determination about what had changed the most and the least, the right thing to do was to be intentionally quiet.”
4: Living in the past
While your track record may have got you the CEO role, don’t assume that what worked before will work in the new organization. Likewise, don’t be trapped into adopting your predecessor’s budget. You need time to assess for yourself the talent and resources you need to pull off your agenda.
5: Ivory towers
Amgen’s Kevin Sharer: “Everything isolates you in this job. You’re surrounded by people who want to make you happy. And you don’t often get the nuance of what’s going on. If you don’t fight against isolation, you will be isolated.”
6: Stifling dissent
One of the traps of new CEOs is to smother discord and create an environment of fear. In such an environment only the mediocre survive as talented employees head for the door. Stifling dissent can cost you some of your most talented staff.
7: Savior syndrome
It’s a serious trap to try – and believe you can – do it all alone. As Jim Kilts, CEO of Gillette, points out: “You can lead, but ultimately it is the people in the company who have to deliver.”
8: Misreading real power sources
Don’t ignore the unwritten rules about who really holds the reins. Sometimes a board can appear to give you a mandate, but if true power lies elsewhere, don’t try to do too much too soon. Gauging the true source of power is critical in the early days, but it’s also important to keep refreshing your assessments as you move forward.
9: Picking the wrong battles
Selecting the wrong priorities and concentrating on the big things at the expense of the little things is a common mistake as Lawrence Summers, president of Harvard University, explains: “There’s a tendency in the beginning to think that it’s more important to be visible and out at functions than taking care of business. Truth be told, if I’d been sitting at my desk answering my mail, I probably would have been more effective.”
10: Disrespecting your predecessor
“There are lots of dumb mistakes new CEOs can make, but one of the most common is to blame your predecessor for everything that’s wrong. People forget that just about everyone who was there when the new CEO arrives has worked for the old CEO and probably has some loyalty to him or her,” warns Leo Platt, former Hewlett-Packard CEO.
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You're in Charge — Now What?
Note
This article is a summary taken from You're in Charge — Now What? published by Crown Business, New York, 2005.