Published By:


Be Master Of More Than One Domain: Good CEOs must think of the entire company

BY: MICHAEL STERN November 21, 2007


Ken, the chief financial officer of a medium-sized industrial company near Toronto. was more than an able number-cruncher: he knew his way around mergers and acquisitions, taxation and risk management; his management reporting was always timely and accurate.

No one else could keep up with him. If a vice-president proposed a new initiative, Ken would figure out the cash-flow drawbacks before his colleague had finished talking. When the chief executive proposed a daring acquisition, he would offer three reasons why the financial markets would cringe at the move.

You have probably met people like Ken. He was hired because his financial acumen was second to none. That was his greatest strength; and his biggest weakness. Outstanding professionals do not necessarily make great business leaders.

Over the years, I’ve heard countless search committees say something like: “She’s a great vice-president of marketing, but not a candidate for president. To her, everything is a marketing problem”. (Substitute “operations”, “finance”, “I.T” -- or the discipline of your choice.)

If you are going to pursue a career in senior management, you have to rise above your humble roots in accounting or sales. You have to develop a broader perspective that includes all parts of the company – from finance and marketing to human resources and research and development.

Edward, a friend of mine, who is now CEO of a major service company, likes to introduce himself by saying “I’m a CA – but I got over it.” He has the right idea. The same outlook and approach that got you to CFO, CMO, or SVP of sales are not going to win you the corner office.

That job is reserved for people who take a strategic view of the company’s challenges and balance competing interests to find the best solutions.

Look at some of the people who have been named Canada’s Outstanding CEOs of the Year. This year’s winner, Gordon Nixon of RBC Financial, is an investment banker who accepted general-management responsibilities at an early age: at age 29, he was running Dominion Securities’ Japanese operations. At 44 he became the youngest-ever chief executive of a major Canadian bank. Last year’s Outstanding CEO, Research in Motion co-CEO Jim Balsillie, is a chartered accountant turned telecom evangelist and hard-nosed negotiator. The previous winner, Gwyn Morgan, former CEO of EnCana Corp., is a petroleum engineer whose vision of creating the country’s largest oil company changed the face of Canada’s oil patch.

Take it from an old headhunter: their successes did not come about by viewing their worlds strictly through the lenses of an investment banker, an accountant or an engineer.

Clearly, you need a broader vision than most if you hope to rise through the ranks. You have to transition from championing your own department or division to making decisions that are in the best interests of the entire company.

Pepsi-Cola, long envied for turning out the superior management teams, was emphasizing strategic orientation long before it became fashionable.

Whether you were head of marketing, a supply chain manager or a division vice president, a successful Pepsi employee’s objective was to help make the whole business successful. Their focus was not finance, HR, or the southwest division: it was the company.

It won't be easy to adopt that broad, strategic mindset. Sometimes you have to make (or support) decisions that aren't in the best interests of your home turf: closing a plant here, or supporting the growth of a rival division. The fact that you're currently overseeing marketing, or running the Tokyo office, is part of your job description. It doesn't define you.

As you might expect, this characteristic is more important now than ever. With businesses becoming ever more complex beasts, and global competition increasing, companies need broad perspectives and relentless objectivity

No one person has all the answers, so the current chief executive needs the advice of strategic, trusted team players. If you want to hire more people like this, look for candidates whose climb up the ladder has included diverse experience in different disciplines or regions.

Ask questions that give candidates a chance to demonstrate their breadth (or narrowness) of perspective. Probe their accomplishments in previous positions: how did they contribute to the success of the company as a whole? (Did they even think in terms of the company as a whole?) How do they spend a typical day? Do they seem stuck in their functional silo, or do they regularly reach out to build relationships and achieve results in other areas of the business?


To develop this attitude on your team, find ways to encourage strategic thinking and cross-functional relationships.

Emphasize the broader objectives and missions of the organization. Create opportunities for talented team players to rise to the top.

Silos are for grain, not for people.