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What are the critical competencies required for effective CEO performance? How does organizational culture influence this? How are critical competencies developed?
Here are some of the topics covered in the book Being a CEO: Skills for Effective Performance, by Dr. Fernando Troilo—a talent management consultant and visiting professor at the School of Administration and Social Sciences at Universidad ORT Uruguay.
The book launch took place online on November 11, 2021. The event was organized by ORT’s Graduate School of Business.
“The book came about as a result of my work supporting executives in their professional development, observing the factors that influenced their career growth, and how they have shaped their career paths,” Troilo said.
“The information in the book is based on the CEOs I interviewed,” said the expert. “I conducted 30 in-person interviews between 2018 and 2019.”
“It is crucial that the individuals in the top leadership positions of organizations possess the necessary qualifications to perform their duties effectively,” he added.
The expert identified the following competencies necessary for effective CEO performance:
- Communication. This must be carried out clearly and concisely, with the goal of building close relationships through active listening. The CEO must serve as the primary link between the organization’s internal and external spheres.
- Leadership and management. This involves interacting with a diverse range of people, focusing on talent development, and building various work teams.
- Strategicthinking and planning. The ability to think not only in the short term but also in the medium and long term, and to develop action plans accordingly.
- Flexibility and adaptability to change. Making decisions in a flexible manner in response to the environment.
- Agility. Deciding on courses of action in response to the ever-changing dynamics of the environment, adapting to different situations, and being able to shift focus from one issue to another.
- Managing complexity, uncertainty, and ambiguity.
- Empathy. Interacting with a diverse range of people is essential for developing self-awareness and for being able to understand others.
- Market and businessknowledge. Understanding the environment in which the company operates and the specific business.
- Resilience. Refers to the ability to successfully overcome adverse situations and emerge stronger in the future.
- Learning and vulnerability. This competency is associated with the ability to continually seek out the challenge of acquiring new knowledge, while accepting help from others.
- Financial literacy. This involves understanding the unique characteristics of the market and possessing the technical knowledge of finance needed to navigate its complexities.
Troilo noted that a CEO’s critical competencies are influenced by organizational culture. In particular, they are shaped by the experiences he had with his supervisors throughout his career before reaching this position.
“Some managers foster the development of these critical skills—particularly leadership and management—while others do not. If the managers they’ve had served as examples or role models to encourage the development of these skills, that will help the CEO become a better leader,” the expert explained.
“Another important cultural aspect highlighted by the CEOs was the work teams themselves. In other words, the teams they had been part of in the past also served as catalysts for these skills, particularly communication and interpersonal skills. This involved working as a team, as well as developing flexibility and adaptability.”
Experience is another factor to consider. “Nothing can replace the experiences gained on the job and the situations they had to face. Above all, the CEOs mention the most complex, challenging, and emotionally charged experiences. It is these experiences that helped them develop the eleven critical competencies.”