The CX Factor What It Takes To Be A CEO

What is that they do? What is the secret sauce of a successful CEO? How do these folklore leaders of businesses get to, where they belong? And what do they do when they get there? Is a CEO more successful when he/she breathes in fresh air from their experiences of another field, or is a beenthere done that a better bet? Or does it matter much?

"Whether you are an old-hand in an industry or a breath of fresh air, you will be successful at the top only when you handle finances, systems and processes and people well"

A few weeks back, there was a big media announcement of Philippe Palazzi joining us as Group CEO. Brilliant pedigree, great track record, the most appropriate man for the job. Yet seemingly not a very conventional dairyman by training or experience to be onboarding as the Global CEO of the world’s biggest dairy company. Louis Gerstner, Chairman and CEO of IBM during the 90s, largely credited with turning IBMs dwindling fortunes around, was a career banker before he took over at the helm of a technology company. When Robert Iger took over as CEO of ABC Entertainment Networks (later to be acquired by The Walt Disney Company where Iger would become CEO of the merged entity) he had no prior experience in Entertainment. The legendary Gopal Vittal, CEO of Bharti Airtel comes from a food and FMCG background. There are abundant success stories of CEOs at reins of companies that customarily was not their domain. Much like, there are luminous stories of people who have always held steadfast to what we call, their playground. My friend, Ganesh Natarajan, the Information Technology stalwart, one of Indian IT’s brightest stars, has always been an IT man. How do these folklore leaders of businesses get to, where they belong? And what do they do when they get there? Is a CEO more successful when he / she breathes in fresh air from their experiences of another field or is a been there done that a better bet? Or does it matter much?

When I joined the dairy industry at the helm of a mid-sized company seeking to professionalise, I had no prior experience of running a dairy company. I have had leadership experiences with great telecom and FMCG companies, but never dairy or agriculture. I did have a field day in B2B and B2C, but this was C2C, cow to consumer. As I started spending time, learning the ropes, and not too long did I take, I realised how exciting and fulfilling the realm of dairy and agriculture was. While it was not very much different from leading any other business, I understood how appealing it was to touch the lives of so many people across the value chain from the farmer to the consumer. It didn’t take too long to dawn upon me, that this was what I wanted to do for the rest of my life. Excitement and enthusiasm result in gratification at work, which in turn leads to success. Very quickly you get caught in a virtuous cycle of prosperity, for yourself, your organisation and all around you. This is the time when your presence is felt by a larger section of people and creates enormous value for all stakeholders the farmer to the consumer. What did I do for this ascendency?

What is that they do? What is the secret sauce of a successful CEO? I have found a very pertinent answer in Robert Kiyosaki’s Rich Dad Poor Dad. Business at the top, he says, is about managing three things efficiently :

• Management of cash flow
• Management of systems
• Management of people

"While at the top, and at every other stage, it is very important to know what you don’t know. Saying ‘I don’t know’ is perfectly alright"

Rajiv Mitra

Whether you are an old-hand in an industry or a breath of fresh air, you will be successful at the top only when you handle finances, systems and processes and people well. It is just about this. Not so much about how well qualified are you or how many years have you spent doing the same thing, in the same place. If one has handled management of finances, systems and people successfully in one business, you can safely bet on his success in another. Not for once do I mean to say that an ace qualification or a solid experience are unnecessary. They are most useful, in fact they are very basic hygiene factors, the gate-passes. But as education is not just about a good teacher, sports is not just about a good athlete, a good CEO is not just about his qualifications and experiences (in one industry or another).

And there is more. A very important trait for a successful CEO is his willingness to learn. Rahul Kumar, after 27 outstanding years in the dairy industry, holding apex positions in India’s largest and later world’s largest dairy companies, being among the best and the most accomplished dairy professionals in the country, says he is still learning every single day. Rahul is a modest man, but the fact remains you can never know enough. Therefore, you never stop learning. While at the top, and at every other stage, it is very important to know what you don’t know. Saying ‘I don’t know’ is perfectly alright. It reveals your sense of security and self-confidence; it shows you are willing to share your vulnerable side. And vulnerability builds trust. ‘I don’t know’ heightens your curiosity, that opens gates for new learning. You don’t have to know it all and you know that. Robert Iger, of whom I just made a mention, the fabled CEO of The Walt Disney Company since 2005, once had Roone Arledge, a doyen of the business of entertainment, as his boss and mentor. Iger, in his early days, learnt the tricks of the trade holding Roone’s hand. Time would go by and in its due course, Iger would become the CEO of the company and Roone, still the great man that he always was, would head a very important business for Disney under Iger. Very evidently, Roone knew more. But Bob Iger learnt more. Success is based not on what you know; it’s based on what you learn.

And there is some more. Something that I have resolutely surmised. Something that I have staunchly and enthusiastically followed, something that would yield me great rewards in my career; my belief that professional decency and competitive edge can coexist. Even when you are the CEO. More than ever, when you are the CEO.