CEO Toolkit: Essential Skills for Leading a Small to Medium-Sized Company

When it comes to being a CEO, it’s often easy to do the ‘hard things’.

You're making millions of dollar deals, and dealing with international challenges.

But the basics... They go down the drain.

Remembering to do the simple things, the things you would learn at school is often the most important thing to remember.

Yet it's the little things that make a difference - not the big ones.

When you became a CEO you may have thought you would spend your time making massive decisions all the time... but that is for Hollywood.The reality is different.

You rarely, if ever, get to use ‘The CEO card'. The card that says, ‘I'm right because I'm the CEO’.

The vast majority of decisions need to be collaborative. They take time and effort as you consult and work with your team.

Teams don't just happen, they need to be nurtured. The most significant thing you can do that will make the biggest difference to your leadership, is to get the little things right, to set the tone for the whole company.

So, let other people have the wins.

You are the CEO. You don't need to take the wins.

If it makes them feel good, they will appreciate you for it.

Treat people like humans. Chat to them about how they are. Remember their names and things about their families.

Treat people like you would at your home. Simple things go a long way, for instance, getting a coffee machine that everyone likes, or providing fruit for people to snack on. Getting someone a drink.

Remember to send a card to every employee on their birthday. Even set up rituals for people's birthdays - like buying a cake, sending flowers. It is simple but makes people feel important and valued.

Every CEO’s journey is unique, but when it comes to running a small to medium-sized business, a defined set of skills becomes particularly critical.

It's a sweet spot of complexity, often combining the intimacy of a start-up with the structural demands of a larger corporation. Let's delve into the essential toolkit that empowers CEOs to successfully navigate this challenging and rewarding terrain.

#1. Agile Leadership

It's no secret that the business landscape is ever-evolving. From the rise of remote work, made evident by the COVID-19 pandemic, to the integration of AI in various business operations, CEOs need to not just adapt, but thrive amidst change.

The World Economic Forum's Future of Jobs Report (2020) highlighted analytical thinking, innovation, and complex problem-solving as the top three skills for the 2025 workforce, and it's clear these skills are imperative for CEOs too.

Consider the case of Zoom's Eric Yuan. When the pandemic hit, the demand for Zoom's services soared. But rather than bask in immediate success, Yuan showed agility in addressing security concerns, enhancing user features, and ensuring the platform could handle the rapid increase in users. This demonstrated the power of agile leadership in rapidly shifting circumstances.

#2. Financial Acumen

Financial literacy is non-negotiable for CEOs.

A deep understanding of balance sheets, income statements, cash flow, and capital management is crucial.

According to a study by the Harvard Business Review, one of the common reasons for CEO failures is the lack of financial acumen, often leading to poor decision-making.

An example in this domain is Mary Barra, CEO of General Motors. When the company faced financial headwinds, Barra’s financial acumen helped steer GM to safety. Her strategic decisions, grounded in a robust understanding of finance, included investment in electric and autonomous vehicles, and reorganisation of production lines, leading to a company resurgence.

Winging it and pretending to understand, simply will not do. If finance is not your strong suit, it is even more crucial to employ a Finance Director who you can really trust and who will explain things to you in a non-practising way.

#3. Emotional Intelligence

In an era where the importance of human capital is more recognised than ever, emotional intelligence (EI) stands as a cornerstone for effective leadership. CEOs need to understand and manage their own emotions and those of their teams.

A survey conducted by CareerBuilder (2017) showed that 71% of employers valued EI over IQ.

Microsoft’s CEO, Satya Nadella, known for his empathetic leadership style, credits his success to EI. Under his tenure, Microsoft experienced a cultural shift, marked by increased collaboration and innovation, leading to a remarkable growth in market value.

#4. Talent Development

CEOs of small to medium-sized businesses often face resource constraints, making talent development a key factor.

Nurturing a team's skills and potential ensures the company's sustainable growth.

According to a LinkedIn survey, 94% of employees would stay at a company longer if it invested in their career development.

Take the example of Starbucks's CEO, Kevin Johnson. Despite leading a large corporation now, his approach to talent development, stemming from his earlier leadership roles in smaller companies, led to the "Starbucks College Achievement Plan," which provides tuition coverage for employees. This not only improves employee retention but also builds a talent pipeline.

#5. Strategic Thinking

Finally, strategic thinking is indispensable and the cornerstone of the CEO's role.

A CEO should look beyond the day-to-day operations and plan for the future, considering market trends, competitor strategies, and potential risks.

A study by Management Research Group found that the most effective leaders thought strategically 50% more often than less effective leaders.

Elon Musk's approach to Tesla demonstrates strategic thinking at its best. Despite scepticism, Musk’s long-term vision for electric vehicles and investment in infrastructure, like the Supercharger Network, allowed Tesla to overcome initial hurdles and dominate the electric vehicle market.

Conclusion

The role of a small to medium-sized business CEO is multifaceted.

Agile leadership, financial acumen, emotional intelligence, talent development, and strategic thinking form the vital toolkit for success.

Not only do these skills help navigate the unique challenges of this business size, but they also serve as stepping stones for growth and expansion. As you develop these skills, remember that every great leader is a lifelong learner at heart.

As the Greek philosopher, Heraclitus aptly said, "The only thing that is constant is change". So, continue to evolve, adapt and lead with vigour and passion.