How CEOs learn

Learning from peers, turning to mentors, and practising new

skills are the three modes in which CEOs renew themselves.

The principles of leadership were once considered The second is the tendency to constantly assess
timeless, but the men and women who run the situations, people and issues and, consequently, to
world’s biggest organizations today unanimously be more guarded about learning from others.
remark on how operating in the present business
environment is dramatically different from even just The third is confusing learning with acquiring
a decade ago. information. Many CEOs do take the effort to gain
exposure, speak to diverse people and read widely
Our research shows that the chief executive in their quest to learn. However, they rarely follow it
officer’s (CEO’s) role is made especially challenging up by internalizing this knowledge and putting it to
by three new developments. First, leaders are practical use. It remains, therefore, as theoretical
managing in an age where disruptive technologies, knowledge, without any real leadership benefit.
volatility and multiple, interconnected global crises
create a constant state of flux. Second, the nature Finally, many CEOs feel the need to get complete
of decision-making has changed fundamentally. clarity on an issue before embracing it and being
While earlier CEOs made decisions based on open to learning. As a result, so much time and
instinct or past patterns, these approaches effort is spent in driving towards this clarity that it
no longer work in the contemporary complex leaves little bandwidth to learn and embed new
business environment. Finally, CEOs now face ideas or skills.
unprecedented personal demands. This includes
These four enemies of learning may differ from
the need to be available at all times, a concomitant
person to person, but one or more is relevant for
24/7 scrutiny, and high levels of physical, mental
almost every CEO. Often, CEOs may not even
and emotional energy necessary to consistently
be aware of these learning barriers in their way.
demonstrate good judgement. This requires CEOs
Building this awareness and working around it is an
to be on a learning curve all the time and along
important step in effective learning.
multiple dimensions, just to keep pace with the
requirements of their role.
Since merely acquiring new information is
inadequate, CEOs need to first identify what they
However, most CEOs find themselves grappling
need to know, do and be in order to make their
with certain enemies of learning that prevent
learning more effective. For a start, they need to
them from being fully open and receptive on their
constantly update what they know—keeping up
learning path.
with the dizzying pace of developments in the
The first is the inability to say I don’t know. Having multiple worlds of, for instance, market evolutions,
reached the pinnacle of their careers and been technology or innovation. For example, a CEO of a
ushered into their roles with high expectations, conglomerate recognized that he needed to gain a
many are not comfortable with admitting (even to deeper understanding of financial markets for a new
themselves) that they do not know all the answers business they were entering. Another CEO, who
and need to learn. had grown through the ranks in a technical capacity,
realized he needed to gain a grasp of marketing.

Perspectives on CEO Leadership 15

 Next, CEOs need to raise the bar on what they invaluable sense of the issues that lay ahead in the
can do—new skills they can learn, embed and coming months.
demonstrate on a day-to-day basis (for example,
conducting challenging reviews, motivating Another CEO actively seeks out peer group help
people, negotiating deals) such that it becomes when facing business challenges. For example,
second nature to them and does not lead to while formalizing performance management
wasting energy in constantly reinventing the systems within his organization, he was not
wheel. convinced by the recommendations put forth by
his own teams. He then spent time with several
And third, they need to focus on what they should other CEOs he respected from around the world
be—the mindsets and inner mastery required to be who had worked through the same issues. This
able to balance the intense physical, mental and provided him with both the validation to work on
emotional demands made on them. these issues as well as some early ideas on how to
proceed.
Once the leader has invested some time in
discovering what needs to be done, he or she Sometimes, this top-class exposure involves
can choose how they want to go about it. In our members of the team as well. The CEO of an
experience, there are three modes in which CEOs industrial company invested four days with a few
renew themselves on dimensions on know and members of his top team to visit an automobile
do: learning from peers outside their company; manufacturer, considered a benchmark in
turning to mentors who have been there and done continuous improvement. He found that he and
that; and practising and embedding new skills his team returned with renewed energy and
consciously. The aspect of what they should be is fresh ideas to implement at his own company,
often a longer journey of personal mastery. something that would have been difficult to achieve
if he had stayed within his immediate environment.
Learning from peers outside the company
Many CEOs remain current, imbibe new ideas and Turning to mentors who have been there and
challenge themselves by networking with fellow done that
CEOs in peer groups. This approach to learning Many CEOs have mentors who they regularly tap
can range from deliberately choosing exceptional for ideas and guidance. One CEO enjoys a very
individuals (or a group of people) to associate healthy relationship with his predecessor, and
with, or visiting organizations of excellence across schedules regular meetings with him. He finds it a
different industries or geographies, or attending valuable way of having an independent sounding
peer conferences and other networking events to board for new ideas, as well as getting experienced
learn how other senior leaders operate. inputs on particularly tricky issues.

The CEO of a conglomerate is an enthusiastic Another CEO happened to meet with the former
proponent of this approach. He maintains a list of CEO of one of the largest companies in his sector.
CEOs whom he respects and likes to emulate, and They formed a friendship that later developed into
makes it a point to connect with them regularly. a mentoring relationship where the CEO receives
Often, when he travels abroad, he has a specific help and support on a variety of areas, especially
list of people in mind that he would like to meet to complex people issues.
broaden his perspective. For instance, during the
global financial crisis in 2008, he spent two days This kind of reliable and unbiased mentoring
meeting a range of Wall Street CEOs with the sole support is invaluable for CEOs who are striving to
purpose of gaining a first-hand idea of what was remain ahead of the curve on a range of complex
happening in that chaotic business environment. issues.
He remarked that these meetings gave him an

16 Perspectives on CEO Leadership

Practising and embedding new skills feedback on her progress. This new skill is now
consciously part of her DNA.
Many CEOs prefer to learn and internalize by actual
practice. The CEOs who adopt this method of Encompassing all these three approaches to
learning take three preliminary steps. First, they learning that address know and do, CEOs need
increase their own awareness of their learning to pay attention to who they need to be. The
gaps and its impact on the organization. Second, journey towards acquiring that personal mastery is
they motivate themselves to make the change. And largely self-driven and CEOs take multiple routes
finally, they identify the right source to learn from, towards moving forward. Some like to undertake
and follow it up by practising the newly-acquired this journey of understanding and change on their
skill extensively and working with discipline on the own, mainly through self-reflection and electing to
feedback. reframe certain mindsets on a consistent basis.

One CEO, for instance, was frustrated by his One CEO chooses to spend three days at the
inability to communicate tough messages to his end of every year reflecting on what he has
team, especially the people he knew well. After a accomplished and how far he has travelled down
round of 360 degree feedback, he worked with the road towards overcoming limiting mindsets or
a personal coach on the skills and techniques behaviours. He then defines what changes he has
required for tough conversations. When such to make to his inner being and works on them over
conversations subsequently arose, he made the following year.
sure he practised his new skills and tapped his
Others prefer to involve their team in the journey,
team for feedback to bolster his recent learning.
taking part in sessions where they jointly identify
Recognizing that it was a skill that his entire top
mindset and behavioural challenges, and work
team needed to learn, he organized a three-day
together to overcome them. Some others could
offsite for the team so that this new learning would
take a more drastic route, spending days in
be embedded at different levels of the organization.
leadership camps in the wilderness, attempting
Another CEO who chose this practice and embed to reach a less cluttered understanding of
approach had identified effective delegation themselves. While the journey may sound esoteric,
as her learning challenge. She would invariably the aim is practical—to explore what needs to be
be involved in every decision—even relatively learnt and which approach would work best.
minor ones. Once she became aware of how this
CEOs today can choose from diverse ways in
was affecting her effectiveness, she organized
which to continue their learning, depending on their
a session on the principles of good delegation
natural mindsets and preferred learning style. The
with her top team. At the end of this session,
CEOs who enjoy the most satisfying and powerful
she prepared a one-page plan that specified the
results are those who take decisive ownership
major tasks ahead and detailed how she would
for their development and recognize that it is a
delegate each of them. She spent the next few
continuous journey.
months practising her new approach and receiving

Faridun Dotiwala is a senior expert in McKinsey’s India office and Gautam Kumra is the founder of
McKinsey Leadership Institute and a director in McKinsey’s India office.

Published in Mint on March 11, 2014

Perspectives on CEO Leadership 17