Successful business decision making: The CEO role

I recently read an article in Fortune Magazine that asked, “Are we living in a post CEO world?”

The author, Doreen Lorenzo, president of Frog Design said, “The idea that a CEO is the only person within a business who has the ability to change the world is daunting and unfair. For such a concept to be the model for American innovation is a risky bet.”

For me, her comment begs the question: “Can one person, at the top of any organization, acting alone, consistently make the right calls?"

From my point of view the answer is no. A talented CEO should receive counsel from others before making any important decision.

As a founder and long time CEO of a global business, and as a director of multiple corporations where I, with others, oversee chief executive officers, I believe a CEO can benefit from listening to a team of advisors at any stage of a growing business: start up, emerging company, growth and high growth.

Listen to mentors at the start-up stage. At the start-up stage of a business, when the entrepreneur has an idea that he or she wishes to commercialize, I believe the founder should rely heavily on trusted mentors to help make key business decisions. This assumes mentors have industry knowledge and relationships, and that they have deep experience and skills with related products and markets.

My opinion also assumes that the entrepreneur lacks the experience in running a business and has only a few skills to develop, organize and execute an effective business plan. I have found that good judgment and wisdom are only developed over time, through multiple experiences, where time tested principles are understood. Experienced mentors should have learned informative lessons from having previously made both good and bad decisions.

Listen to investors at the emerging stage. In the early stages of a growing business, when sales range from zero to $10 million in revenue, the founder/CEO should listen attentively to highly experienced investors when making key decisions that are critical to a company’s current and future successes.

Generally, I have learned that unseasoned entrepreneurs often make profound and unfortunate mistakes in the early stages of growth that cripple their businesses. For this reason, entrepreneurs should carefully follow the counsel of wise investors.