The CEO Next Door

CEOs aren’t born, they’re made – and you can develop the skills to lead just as effectively.

1. CEOs Are Regular People With Learned Skills

CEOs don’t have to be uniquely gifted or born into privilege to lead successful companies. Many top CEOs began with ordinary jobs, lacking advanced degrees or Ivy League pedigrees. Leadership abilities are developed over time through experience and deliberate practice.

The ghSMART project surveyed over 2,600 CEOs and revealed that 70% of them had no ambition to become CEOs when they started their careers. Instead, they climbed the corporate ladder step-by-step, focusing on learning and improving along the way. They proved that leadership mastery isn’t confined to an elite group; it’s about adaptability and growth.

Take Don Slager as an example. He began as a garbageman at Republic Services, worked his way up, and became CEO of the $9 billion company. Slager’s intimate understanding of operations and public needs made him an effective leader. Moreover, only 7% of surveyed CEOs graduated from Ivy League schools, and 8% never attended college. Education can help, but fundamental traits and skills ultimately carry more weight.

Examples

• Don Slager: rose from a garbageman to CEO of Republic Services.
• 30% of CEOs are introverts who leveraged their reflective natures into leadership strengths.
• 8% of CEOs succeeded without attending college, proving academic background isn’t the determining factor.

2. Decisiveness Trumps Perfect Solutions

Successful CEOs make decisions quickly and confidently, even if they’re not perfect. Deliberation and overanalyzing can stall progress, whereas decisiveness keeps momentum. CEOs understand the value of acting swiftly rather than waiting for exhaustive perfection.

Steve Gorman, CEO of Greyhound Lines, transformed the company’s $140 million deficit into profitability in four years. He boldly shut down routes to sparsely populated areas without endless analysis and debate. Similarly, Doug Peterson of McGraw Hill Financial followed a simple yet sharp formula: only enter markets where the company could dominate or refrain altogether. This taught the team to make impactful choices quickly.

CEOs know that detailed perfectionism often detracts from timely action. Instead, they prioritize overarching strategies that simplify and accelerate decision-making for their teams.

Examples

• Steve Gorman saved Greyhound Lines by quickly halting unprofitable services.
• Doug Peterson used a clear “number one or two” rule to focus on promising sectors.
• A ghSMART study found decisiveness makes CEOs 12 times more likely to excel.

3. Listening and Empathy Drive Results

Introverts often excel as CEOs because they actively listen and empathize with others. Great leaders understand their stakeholders, from customers and board members to employees. Empathy, rather than ego, leads to higher trust, motivation, and aligned goals.

Neil Fiske exemplified this ability when he rescued lingerie and surfwear brands by interviewing customers and thoughtfully integrating their feedback into strategy. Similarly, Jim Donald of Starbucks spent half his time on the shop floor, learning firsthand from both customers and employees. These efforts built connections and informed decisions that resonated broadly.

Understanding board members’ motivations also plays a role. CEOs who ask board members about their ambitions and align on missions find smoother collaboration and stronger backing for company initiatives.

Examples

• Neil Fiske interviewed customers to expand a lingerie company into a billion-dollar brand.
• Jim Donald gathered direct insights by working closely with employees and customers.
• Smart CEOs research board members' goals to foster alignment and mutual respect.

4. Reliability Wins Trust

Reliability is a cornerstone for earning CEO roles and leading effectively. Companies seek leaders who follow through on commitments consistently. Even modest promises, if kept, build trust and credibility over time.

The Genome Project linked strong reliability traits like discipline and thoroughness to high-performing CEOs. Leaders who lack reliability or exhibit erratic behavior often fail to create lasting trust. Board members prioritize steady execution over risky, grandiose promises that may never materialize.

Furthermore, reliability means showing emotional consistency. Jeff Schwartz of Timberland emphasizes the importance of being predictable, whether serious or friendly, to create an approachable and stable atmosphere for employees.

Examples

• 94% of CEOs in the Genome Project scored high on following through with commitments.
• Reliable leaders often outperform “mad geniuses” prone to rash decisions.
• Jeff Schwartz advises emotional consistency to maintain professional accessibility.

5. Create Systems Employees Can Follow

CEOs don’t micromanage everything; instead, they create repeatable systems that streamline processes and empower teams. These systems ensure efficiency and reduce the risk of errors.

Think of a conductor leading an orchestra. During rehearsals, they guide musicians through clear routines so the performance runs smoothly later. Similarly, Navy SEALs rely on repetitive training to avoid errors in high-pressure situations. CEOs apply the same principle by standardizing workflows to maintain focus and performance.

For instance, the Children’s Hospital of Philadelphia slashed medical errors by rewarding staff for spotting near misses – reframed as “good catches.” This system encouraged transparency and improvement, reducing mistakes by 80%.

Examples

• The orchestra metaphor exemplifies why preparation enables flawless execution.
• Navy SEALs use repetition to handle pressure and avoid mistakes.
• The “good catches” system drastically reduced medical errors in Philadelphia.

6. Adapt or Fade Into Obscurity

The business world evolves rapidly, and companies that resist adapting risk failure. CEOs must let go of past success strategies and explore new opportunities to maintain relevance.

Blockbuster and Kodak failed because they clung to outdated practices. Kodak delayed digitalization despite its early innovation in digital cameras. Blockbuster ignored the rise of streaming and missed out on multiple opportunities to acquire Netflix.

Conversely, Intel pivoted from memory chips to microprocessors when faced with fierce competition. This proactive shift catapulted the company’s valuation to $197 billion. CEOs who embrace change navigate future trends successfully.

Examples

• Kodak’s delay in digital innovation led to bankruptcy.
• Blockbuster’s refusal to embrace streaming ultimately ended its dominance.
• Intel’s switch to microprocessors drove its market cap from $4 billion to $197 billion.

7. Become a Big Fish in a Small Pond

Leaders who climb quickly often gain visibility by taking on significant responsibilities at smaller firms. These environments provide more room for individual impact and experimentation than massive corporations.

Damien McDonald rejected a managerial role at Johnson & Johnson, opting to lead Zimmer’s smaller spine division. Under his leadership, Zimmer grew by 12%, far outpacing the modest gains expected from Johnson & Johnson. Smaller organizations helped McDonald emerge as an industry standout.

By making noticeable contributions in smaller settings, aspiring CEOs develop clout and attract future opportunities.

Examples

• Damien McDonald boosted growth at Zimmer and gained recognition in the process.
• Smaller companies allow room to implement personal innovative solutions.
• The authors’ study showed 60% of climbing CEOs started at smaller firms.

8. Build Relationships That Matter

Networking isn’t about self-promotion; it’s about purposeful connections that advance mutual goals. Asking for advice is one way to create goodwill and investment in your success.

Offering valuable, needed expertise also boosts your visibility. At many companies, technology skills are in high demand. Becoming a problem-solver can make you indispensable. Alternatively, working directly with a senior manager provides mentoring opportunities and access to decision-making circles.

These approaches ultimately build credibility, open doors, and ensure you’re noticed for the right reasons.

Examples

• Seeking advice from colleagues builds useful workplace relationships.
• Developing limited but essential skills increases your perceived value.
• Working with senior members grants inside knowledge and networking opportunities.

9. Speak With Authority

Communication style matters. CEOs earn respect and attention by being clear, concise, and confident in speech. Long-winded explanations or complicated jargon alienate listeners, while simple, purposeful remarks resonate better.

When speaking, use pauses for emphasis. This gives weight to key messages and demonstrates confidence, making others more likely to trust your leadership.

Examples

• Speaking slowly and confidently ensures clarity.
• Adding pauses for effect allows ideas to sink in, garnering focus.
• Avoiding overly complex language keeps audiences engaged.

Takeaways

1. Practice decisiveness by making quick, informed choices without second-guessing.
2. Seek mentorship and relationships by asking senior leaders for advice and paying attention to stakeholder motivations.
3. Simplify communication: speak with clarity, pause for effect, and avoid unnecessary jargon.