Thursday, June 27, 2024

g-f(2)2555 The Two-Year Blueprint: Building CEO Confidence for Lasting Success

 


genioux Fact post by Fernando Machuca and ChatGPT



Introduction by Fernando and ChatGPT


In the dynamic landscape of the g-f New World, where rapid technological advancements and shifting market dynamics are the norm, effective leadership is more critical than ever. Winning the g-f Transformation Game (g-f TG) requires leaders (g-f RL) who can inspire confidence, foster innovation, and steer their organizations through complex challenges. This journey is particularly crucial for new CEOs, who must establish their credibility and leadership capabilities swiftly yet strategically.


The article "How CEOs Build Confidence in Their Leadership," published in the July–August 2024 issue, provides a comprehensive blueprint for new CEOs aiming to build the necessary confidence and trust of their stakeholders. Authored by Claudius A. Hildebrand, Jason Baumgarten, and Mahesh Madhavan, the article challenges the conventional wisdom that new CEOs have just 90 days to prove themselves. Instead, it reveals that building genuine confidence takes about two years, a period during which strategic actions and deliberate pacing are paramount.


In "g-f(2)2555 The Two-Year Blueprint: Building CEO Confidence for Lasting Success," we explore the insights and strategies outlined in the article, emphasizing their significance for leaders in the g-f New World. This article serves as a critical resource for CEOs and aspiring leaders who aim to master the g-f TG, providing a roadmap to navigate the complexities of modern leadership.


Through our analysis, we highlight the importance of setting a deliberate pace, picking battles strategically, aligning the leadership team, engaging stakeholders at the right time, communicating clearly, and investing in personal development. By focusing on these areas, new CEOs can lay the groundwork for sustainable success and create a "confidence premium" that drives long-term value for their organizations.


In the g-f New World, where the pace of change is relentless, the ability to build and maintain stakeholder confidence is a game-changer. This article equips leaders with the knowledge and strategies needed to thrive in this environment, making it an indispensable tool for anyone committed to winning the g-f Transformation Game.



Introduction


The path to successful leadership as a new CEO is often fraught with challenges and misconceptions. The article "How CEOs Build Confidence in Their Leadership" from the July–August 2024 issue of Harvard Business Review, authored by Claudius A. Hildebrand, Jason Baumgarten, and Mahesh Madhavan, provides invaluable insights into this journey. It dismantles the myth that new CEOs have just 90 days to prove themselves and instead reveals that it takes about two years to build the necessary confidence and trust among stakeholders. This extended timeline, if approached strategically, can lead to significant increases in company value—a concept termed the "confidence premium."


Understanding the process of building leadership (g-f Responsible Leadership) confidence is crucial for winning the g-f Transformation Game (g-f TG) in the g-f New World. This game involves navigating the complexities of modern business landscapes, fostering innovation, and driving sustainable growth. By following the practices outlined in this article, new CEOs can strategically build the foundation for long-term success, ensuring they lead their organizations effectively in an era defined by rapid change and digital transformation.



genioux GK Nugget


"Building confidence as a CEO takes two years of strategic and methodical effort, leading to significant long-term value creation." — Fernando Machuca and ChatGPT, June 27, 2024



genioux Foundational Fact


New CEOs often mistakenly believe they have just 90 days to prove their leadership capabilities, but research shows it actually takes about two years to build the necessary confidence among stakeholders. By focusing on strategic confidence-building practices during this period, CEOs can set off a virtuous cycle that leads to substantial increases in company value, known as the "confidence premium."



The 10 Most Relevant genioux Facts





  1. Timeframe for Building Confidence: It takes about two years for new CEOs to build the necessary confidence among stakeholders, contrary to the common belief of a 90-day proving period.
  2. Confidence Premium: CEOs who focus on building confidence methodically can achieve a significant increase in their company's enterprise multiple, leading to substantial long-term value creation.
  3. Deliberate Pace: New CEOs should set a deliberate pace, viewing their role as a marathon rather than a sprint, to ensure sustainable long-term success.
  4. Strategic Focus: CEOs should pick their battles strategically, launching a few well-structured initiatives to gain momentum and signal their direction.
  5. Team Alignment: Assembling a high-performing leadership team early on is crucial for gaining widespread confidence and support.
  6. Stakeholder Engagement: Engaging stakeholders at the right time and understanding their dynamics is essential for building trust and support.
  7. Clear Communication: Repetition and clarity in communication help reinforce the CEO's message and signal progress effectively.
  8. Continuous Improvement: New CEOs should prioritize their own learning and development to build self-confidence and stakeholder trust.
  9. Real-Life Examples: The article provides real-life examples, such as Mahesh Madhavan's experience at Bacardi, to illustrate successful confidence-building practices.
  10. Holistic Approach: Building confidence involves a holistic approach, including understanding board dynamics, engaging employees, and managing investor relations effectively.



Conclusion


The journey of a new CEO is challenging but can be highly rewarding if approached with patience and strategic focus. Building confidence among stakeholders takes about two years and involves deliberate pacing, strategic initiatives, team alignment, and clear communication. By following these practices, new CEOs can unlock significant long-term value for their organizations, achieving success in the g-f New World. This article from Harvard Business Review offers a comprehensive guide to navigating this journey, providing essential insights for new leaders aiming to master the g-f Transformation Game.





REFERENCES

The g-f GK Context


Claudius A. HildebrandJason Baumgarten, and Mahesh MadhavanHow CEOs Build Confidence in Their Leadership, Harvard Business ReviewFrom the Magazine (July–August 2024).



ABOUT THE AUTHORS


Claudius A. Hildebrand is a member of Spencer Stuart’s CEO practice and coauthor of The Life Cycle of a CEO: The Myths and Truths of How Leaders Succeed (PublicAffairs, forthcoming 2024).

Jason Baumgarten is the head of Spencer Stuart’s global CEO and boards practice.

Mahesh Madhavan is the CEO of Bacardi, the Bermuda-based spirits company.



Classical Summary of the Article


The article "How CEOs Build Confidence in Their Leadership" by Claudius A. Hildebrand, Jason Baumgarten, and Mahesh Madhavan, published in the July–August 2024 issue of Harvard Business Review, delves into the critical journey new CEOs must undertake to gain the confidence and trust of their stakeholders. Contrary to the conventional wisdom that CEOs have about 90 days to prove themselves, the authors argue that it actually takes about two years for a new CEO to build the necessary confidence for long-term success.


The article is based on a study of nearly 1,400 CEOs of S&P 500 firms and insights from Spencer Stuart, a leadership-advisory firm. The authors propose that confidence in a CEO's leadership can be measured through the enterprise multiple, a company's total enterprise value divided by its earnings before interest, taxes, depreciation, and amortization (EBITDA). This multiple reflects investors' confidence in the CEO's ability to deliver future performance.


The article outlines six key practices for new CEOs to build confidence over their first two years:


  1. Set a Deliberate Pace: New CEOs should avoid rushing and instead take a measured approach, focusing on long-term strategy and steady progress.
  2. Pick Battles Strategically: By focusing on a few critical initiatives and stakeholders, new CEOs can demonstrate their priorities and gain early support.
  3. Align the Team: Building a cohesive, high-performing leadership team early on is essential for gaining widespread confidence.
  4. Engage Stakeholders at the Right Time: New CEOs should invest significant time in understanding board dynamics, building relationships with directors, and engaging employees and investors effectively.
  5. Communicate Clearly and Relentlessly: Effective communication involves repetition and clarity, ensuring that stakeholders understand and trust the CEO's vision and progress.
  6. Better Yourself: New CEOs should continuously invest in their own development and seek feedback and support from coaches or advisers to enhance their leadership.


The authors emphasize that while the first two years may not show immediate increases in company value, focusing on building confidence during this period sets the stage for significant gains in subsequent years. CEOs who successfully navigate this journey can trigger a "confidence premium," leading to sustained value creation for their companies.



Claudius A. Hildebrand


Claudius A. Hildebrand is a distinguished consultant and a core member of Spencer Stuart's CEO Practice and Leadership Advisory Services⁶. He is known for his deep study of leadership, having closely examined the performance of over 10,000 CEOs over time and interviewed 100 CEOs and directors to identify the underlying success factors⁶.


Hildebrand specializes in supporting executives to accelerate their performance and purposefully build towards long-term success⁶. He combines data insights with self-discovery to accelerate CEO performance and unlock potential at any stage of their life cycle⁶. He is also engaged in CEO succession planning, assessing leadership potential and capabilities to provide dedicated support and carefully curated content tailored to CEOs' specific needs, situations, and aspirations⁶.


Prior to joining Spencer Stuart, Hildebrand was a member of Boston Consulting Group's CEO Advisory and served clients across industries on leadership, strategy, and organizational culture⁶. Earlier in his career, he served as Founder and Strategic Advisor to several early-stage businesses in Germany, China, and the U.K⁶.


Hildebrand is an award-winning author who has published and presented his research to academic and business audiences⁶. His research on the CEO Life Cycle, which explores CEO performance over time, has been prominently featured on the cover of Harvard Business Review and cited in McKinsey’s book on CEO Excellence⁶. His work on CEO transitions was named “Best of Bain 2020”⁶. His work on mindsets and social networks won “Best Article” by the Academy of Management⁶.


He is a regular contributor to Harvard Business Review and his work is frequently cited in the Wall Street Journal, Fortune, Forbes, and Financial Times among many others⁶. He has repeatedly presented to the G100 CEOs and at several human resources, CEO, and industry events⁶.


Hildebrand earned his Ph.D. and M.Phil. in leadership from Columbia Business School⁶. He also holds a coaching certificate from the Neuroleadership Institute⁶. A global citizen, he speaks six languages and is fluent in German, English, and Mandarin⁶. Claudius is the proud parent of three budding artists and explorers (ages 5 and 2)⁶.


In addition to his impressive career, Hildebrand is the co-author of the forthcoming book "The Life Cycle of a CEO: The Myths and Truths of How Leaders Succeed" (PublicAffairs, 2024)¹. The book is based on groundbreaking research into how CEOs succeed by navigating the storms and predictable crises of corporate life¹. It reveals the distinctive life cycle of a CEO and provides insight into how successful CEOs navigate these cycles by developing fresh skills and strategies needed for each distinct passage¹. The book breaks through the myths and caricatures about CEOs and provides valuable insights into the challenges and crises of corporate life¹.


Source: Conversation with Copilot, 6/28/2024

(1) Claudius A. Hildebrand - Spencer Stuart. https://www.spencerstuart.com/our-consultants/claudius-a-hildebrand.

(2) The Life Cycle of a CEO: The Myths and Truths of How Leaders Succeed .... https://www.amazon.com/Life-Cycle-CEO-Leaders-Succeed/dp/1541702824.

(3) Amazon.com: The Life Cycle of a CEO: The Myths and Truths of How .... https://www.amazon.com/Life-Cycle-CEO-Leaders-Succeed/dp/B0CWJQ16NN.

(4) The Life Cycle of a CEO: The Myths and Truths of How Leaders Succeed .... https://www.amazon.co.uk/Life-Cycle-CEO-Leaders-Succeed/dp/1541702824.

(5) The Life Cycle of a CEO | Claudius A Hildebrand; Robert J Stark .... https://www.netgalley.com/catalog/book/391371.

(6) The Life Cycle of a CEO: The Myths and Truths of How Leaders Succeed .... https://www.amazon.com.au/Life-Cycle-CEO-Leaders-Succeed/dp/1541702824.

(7) Claudius A. Hildebrand. https://de.spencerstuart.com/our-consultants/claudius-a-hildebrand.

(8) Claudius A. Hildebrand - Spencer Stuart. https://bing.com/search?q=Claudius+A.+Hildebrand+biography.

(9) Claudius A Hildebrand | Hachette Book Group. https://www.hachettebookgroup.com/contributor/claudius-a-hildebrand/.





Jason Baumgarten


Jason Baumgarten is a highly respected consultant and the Head of Global Board and CEO Practice at Spencer Stuart¹. He is known for his ability to help organizations across industries find and assess CEOs who drive results and inspire senior leadership teams to perform at the highest levels¹. He also works with boards on director recruitment, CEO succession, and identifying next-generation leadership¹.


Baumgarten's expertise extends to various industries, including enterprise technology, software, big data, consumer internet, e-commerce, and more¹. He has led more than 250 CEO and board transitions, helped many founders with their succession and transition plans, worked with new CEOs to improve top team effectiveness and culture alignment, and led a pioneering diversity initiative for a Fortune 200 company¹.


Before joining Spencer Stuart, Baumgarten was an associate principal and a leader in the technology, media, and service operations practices at McKinsey & Company¹. He also served as a program manager at Microsoft¹. Earlier in his career, he was a founder and strategic advisor to several early-stage businesses in Germany, China, and the U.K¹.


Baumgarten is an award-winning author and a regular contributor to Harvard Business Review¹. His work on the CEO Life Cycle, which explores CEO performance over time, has been prominently featured on the cover of Harvard Business Review and cited in McKinsey’s book on CEO Excellence¹. His work on CEO transitions was named “Best of Bain 2020”¹, and his work on mindsets and social networks won “Best Article” by the Academy of Management¹.


He earned his M.B.A. from Stanford University and his B.A. in economics from Vassar College¹. He also holds a coaching certificate from the Neuroleadership Institute¹. Baumgarten is fluent in German, English, and Mandarin¹, and he currently serves as Chairman of the Board for Islandwood¹.


Source: Conversation with Copilot, 6/28/2024

(1) Jason Baumgarten | Spencer Stuart. https://www.spencerstuart.com/our-consultants/jason-baumgarten.

(2) Jason Baumgarten - Profile and Biography - CEOWORLD magazine. https://ceoworld.biz/author/jason-baumgarten/.

(3) Jason Baumgarten Profile: Contact Information & Network - PitchBook. https://pitchbook.com/profiles/person/78370-48P.



Mahesh Madhavan


Mahesh Madhavan is a seasoned business leader and the current CEO of Bacardi, the largest privately held, family-owned spirits company in the world¹. He has been leading the company since September 2017⁵.


Born in Madras (now Chennai), India, Madhavan graduated from the Ramaiah Institute of Technology with a bachelor's degree in mechanical engineering⁵. He later earned a postgraduate diploma in management (PGDM) from SPJIMR in 1988⁵.


Madhavan began his career in engineering, building warships for the navy, before transitioning to the consumer goods sector⁵. He initially worked at International Distillers & Vintners (IDV) before joining Bacardi in 1997⁵.


At Bacardi, Madhavan held several leadership roles, including serving as the company's Asia, Middle East, and Africa president⁵. He was also the head for Europe based in Geneva before succeeding Mike Dolan as CEO⁵.


Under Madhavan's leadership, Bacardi has continued to thrive and expand its portfolio of more than 200 brands and labels¹. The company, founded in Cuba in 1862 by Facundo Bacardí Massó, has been family-owned for seven generations and employs more than 8,000 people with sales in approximately 170 countries¹.


Madhavan's leadership style is characterized by his commitment to innovation and growth. He is known for his strategic vision and ability to drive results, making him a key figure in the global spirits industry⁵.


Source: Conversation with Copilot, 6/28/2024

(1) Bacardi - Wikipedia. https://en.wikipedia.org/wiki/Bacardi.

(2) Mahesh Madhavan - Wikipedia. https://en.wikipedia.org/wiki/Mahesh_Madhavan.

(3) About Bacardi Limited. https://www.bacardilimited.com/our-company/about-us/.

(4) Bacardi - Crunchbase Company Profile & Funding. https://www.crunchbase.com/organization/bacardi.

(5) Bacardi Company: A Brief Overview of Its History and Success. https://caskable.com/the-basics/bacardi-company-a-brief-overview-of-its-history-and-success/.

(6) Five Questions with Dr. Mahesh Madhavan, Interventional Cardiologist. https://www.columbiacardiology.org/news/five-questions-dr-mahesh-madhavan-interventional-cardiologist-and-structural-heart-specialist.

(7) Mahesh Mahadevan - Wikipedia. https://en.wikipedia.org/wiki/Mahesh_Mahadevan.

(8) Mahesh Vasantha Madhavan, MD, Cardiovascular Disease - at .... https://doctors.columbia.edu/us/ny/goshen/mahesh-vasantha-madhavan-md-1995-route-17m.

(9) Mahesh Vasantha Madhavan, MD | Division of Cardiology. https://www.columbiacardiology.org/profile/mahesh-v-madhavan-md.

(10) en.wikipedia.org. https://en.wikipedia.org/wiki/Bacardi.






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Categorization


This genioux Fact post is classified as Bombshell Knowledge which means: The game-changer that reshapes your perspective, leaving you exclaiming, "Wow, I had no idea!"



Type: Bombshell Knowledge, Free Speech



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REFERENCES



genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2555, Fernando Machuca and ChatGPTJune 27, 2024, Genioux.com Corporation.



The genioux facts program has established a robust foundation of over 2554 Big Picture of the Digital Age posts [g-f(2)1 - g-f(2)2554].



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