Questions & Answers to Panelists:
1) Based on your experience, what one piece of advice would you give CEO’s to have a successful relationship with their Board of Directors?
Somehow make yourself invaluable to the Board. In our case we are part of an Equity Investment Portfolio Fund. They have yearly investment meetings and need to impress their investors. They have a second fund and are looking for testimonials of what it is like to have them as partners...so be available
2) Please discuss the relationship between your strategy and the ultimate success of the business. Did you have a strategy all figured out and in place or did you adapt and evolve as opportunities presented themselves.
We started off as many start-ups with an idea, a product and the marketplace. In our case we manufactured a 3x2 mat with an extension cord and a plug. We evolved the product over time but realized if we were going to truly be successful we needed a strategic. We now have A Strategic Facilitator that meets with us quarterly to ensure we are on track. We have a one team conference in February that includes every employee in the company to develop the next year plan.
3) What is the measure you can think of that best indicates when it is time for a CEO to step aside and let others continue the business forward?
What are you bringing to the organization? How comfortable is your team and have they stopped listening to you? Have they heard the same stories too many times? I think you have to look inward and be honest with yourself…is it time? And if it is what does that look like. Put a succession plan in place. I hired a company Knightsbridge to put my executive and myself through a thorough leadership assessment.
4) How do you know if you are the right person to continue to lead the company to grow at different stages of the company?
I believe my strength is growing a business. I have a very strong CFO and when 2009 came I turned to him to manage the costs of the business. He lead us in an exercise in what if we had to reduce our staff and costs from 114 employees to 85 and then to 65. We created a model and then we implemented the first stage. All the while we maintained a healthy bottom line…that’s what the Equity partner was looking for.
5) How do you deal with a board member who insists he wants to help out by leading on key initiatives (e.g. new stock option program) then proceeds to do nothing?
You have to hold your Board member accountable. The Chair of the Board is your person best to do that. If you are confident in your leadership and you aren’t getting the support you need you owe it to yourself and the organization to bring it up and deal with it.
6) Where do you get feedback on how well you do as the CEO? What are the metrics and benchmark?
Being part of a business group like MacKay CEO Forums. What is working for others? Having a business coach that interacts with your senior leadership team. You definitely need a feedback mechanism.
7) What do you consider was your biggest failure and what did you learn from it?
Not pushing the organization hard enough or fast enough in the hey days of 2004 – 2007. I learned that just give us an okay market and we will grow and take market share…2012 is an okay market and we are fighting hard, we have added people, process and energy and it’s paying off.
8) What are the main (less than a handful) resources you have utilized and relied on in becoming a successful CEO?
Energy, humbleness, genuine caring of staff, sense of humour. Know what your talent is and what you need to best support it and surround yourself with the best and brightest.
9) What are you currently reading in regards to Leadership issues?
Inner Excellence by Jim Murphy.