CEOs must change their leadership style

Egon Zehnder, a leading leadership advisory firm, has published the results of a study in which 972 CEOs around the world were surveyed. Approximately 100 Swiss CEOs also participated in the survey. The central question of the survey was: How have the function and expectations of CEOs changed in the face of major global challenges and emerging trends?

Radically change the management style

The study concludes that the pressure of expectations on CEOs worldwide has increased dramatically. At the same time, they have to radically change their leadership style. Interpersonal leadership skills and self-reflection are becoming increasingly important. CEOs are becoming increasingly aware of the social aspects of their role: they recognize that the key to entrepreneurial success lies in radically developing their interpersonal leadership skills.

Rethinking the role of the CEO

Two changes are shaping corporate culture: a growing demand for equality in the workplace and a call for more flexible, hybrid forms of work. As a result, CEOs around the world are rethinking not only their leadership style, but also their entire role. How do they want to work with their teams in the future? In what ways do they want to develop the company - and themselves? How do they position the company for the long term? In the current complex business environment, it is crucial for CEOs to prioritize their own development while learning to better leverage the potential of their own organization.

The most important results at a glance

• 90 percent of CEOs say their immediate environment has become louder, more demanding and more diverse. When asked about the impact of recent circumstances on their business, most CEOs said decision-making and change had accelerated and economic uncertainty had increased. These changes highlight the complexity and rapid pace of change reshaping the business world. At the same time, CEOs are being measured against ever higher and more drastic stakeholder expectations. Swiss CEOs' perception of this change was only slightly weaker compared to their international peers, with 83 percent agreeing, 7 percent lower than the global average. Nevertheless, the results also show in this country how profoundly the role of the CEO is changing.
• 78 percent say they are reflecting on their own leadership style - up from 66 percent in 2018. CEOs are looking to expand their capabilities and want to be adaptable, relational, and self-reflective. Swiss CEOs are particularly eager to solicit diverse perspectives and seek feedback from their reference groups - including team members, senior management, CEOs and VRPs. Sixty-three percent of Swiss CEOs seek feedback when interacting with the VRP, which is quite a bit higher than the international average of 51 percent. It is also striking that the family seems to play a special role, especially in Switzerland. 62 percent of CEOs in this country said they consult their partner or a family member for feedback, compared with 48 percent worldwide. In addition, female CEOs in Switzerland seek advice from their team and management much more frequently than their male colleagues. Accordingly, they seem to separate business and private life to a greater extent.
• Seventy-eight percent of CEOs admit to focusing on their own change or development - three times as many as in 2018. Among Swiss CEOs, the level of agreement even exceeds 89 percent. CEOs worldwide agree that a "double transformation" is needed to master the challenges of our time: they believe that the personal development of a CEO and the growth of the company are inextricably linked. In this respect, the most striking finding is the almost unanimous agreement of a thousand executives with the statement: "As a CEO, I need to be able to change both myself and my company."
• Conflict and decision-making: Two-thirds of CEOs report that decision-making criteria have remained unchanged despite new social and economic complexities. In addition, fewer than half of CEOs (44 percent) say they feel in alignment with their teams - even fewer say the same about their boards. Both indicate a heightened potential for tension and an increased need for collaboration between leaders and employees.
• Nearly 500 CEOs, or more than half of all respondents, see the issue of relationship skills as an important blind spotas an analysis of verbal comments shows. Fewer than half of CEOs (46 percent) say they are fully aligned with their teams, and even fewer with their supervisory boards - indicating heightened tensions and a correspondingly greater need for coordination.
• Innovation and ESG more important for CEOs in Switzerland than the global average. While financial metrics are at the top of CEOs' agendas worldwide, Swiss CEOs rank innovation metrics as the most important driver of their decisions. This is a remarkable increase over the global average, which ranks innovation metrics sixth. Swiss participants also rank environmental, social and governance criteria slightly higher than their global peers.

Apart from a strong set of classic leadership skills, CEOs are characterized above all by an increased degree of mindfulness, adaptability and relational skills. According to Clemens Hoegl and Simone Stebler of Egon Zehnder Switzerland, the study shows that the last two skills are in great need of improvement. What is certain, they say, is that the personality of CEOs is deciding the weal and woe of a company more than ever before.

Source and further information: www.EgonZehnder.com