Shay Davis became CEO for the wrong reason and took action.
Shay Davis recently became CEO of Golden Gate Security in San Francisco, but he struggled. The company wasn't growing as fast as its competitors, and Davis feared he might lose his job within a year if he couldn't turn things around. As the CEO, Davis was accountable for the company's progress, but it lagged behind local security competitors. All-American Alarm, the dominant player in the market, posed a tough challenge. Davis felt the pressure to turn Golden Gate Security into a success within a year to avoid being ousted by the board. 

He reached out to Lighthouse Partners, a reputable consultancy in California, for help. However, there was a complication: Lighthouse Partners also worked with Del Mar Alarm, a rival firm led by Liam Alcott, whom Davis disliked due to his success and British accent. When Davis called for advice, consultant Amy Stirling said she needed Alcott's permission to assist. To Davis's annoyance, Alcott himself called back, further irritating Davis with his friendly yet, in Davis's view, pretentious manner.

CEO Collaboration for Business Growth

Alcott told Davis he was fine with his consultancy, Stirling, working with another home-security firm in California. However, before starting, Alcott suggested they meet to discuss some leadership lessons he learned from Stirling. Davis was not keen on the idea but agreed to meet after Alcott mentioned they could strategize against their common competitor, All-American Alarm, and exchange tips.The British CEO persuaded Davis to meet by proposing they could collaborate to counter their mutual competitor, All-American Alarm, and share valuable advice.

In their meeting at Davis's office, Alcott asked what Davis hoped to gain from Lighthouse Partners. Davis expressed concerns about his company, Golden Gate, not performing as well as it could and hoped Lighthouse could boost his sales. Alcott encouraged Davis to share his financials openly, offering his own company's financials as a gesture of goodwill.

Davis was surprised to see Del Mar Alarm's superior financial performance and felt embarrassed about his company's figures. He attributed Golden Gate's struggles to the challenging San Francisco market, but Alcott disagreed. He pointed out issues in Golden Gate's sales, high employee turnover, and excessive marketing costs. Davis sought Alcott's candid feedback on his business practices, and Alcott agreed to help diagnose the problems, sharing insights from Stirling's teachings.

CEO Priorities and Perspectives

Alcott shared with Davis a lesson he learned from Stirling, emphasizing the importance of focusing on personal performance. According to Stirling, the acronym CEO stands for "chief executing officer," not "chief executive officer." Alcott then asked Davis about  œWhat is the most important part of what you do? Davis replied that he prioritized the firm's financial metrics, sales, marketing, and M&A activities. Additionally, he emphasized maintaining positive relationships with board members and "private equity guys."

He considered tasks like "management, dealing with employee issues and politics," and meeting with customers from small companies and multi-unit housing enterprises less important.Alcott challenged Davis to evaluate his activities based on importance and enjoyment. Davis placed "management and leading" low on both scales. In contrast, Alcott revealed that his perspective had shifted, now prioritizing managing and leading as his sole CEO duties, delegating other tasks to his team. During their discussion on meetings, Davis admitted his dislike for them and viewed skipping meetings as a CEO perk. Alcott, however, expressed his fondness for meetings, cautioning that while they are crucial, poorly conducted meetings can be harmful.

Leadership Lessons: A Tale of Two Styles

Davis proposed giving Alcott a tour of Golden Gate Security's offices. As they walked through, Alcott noted the internal atmosphere felt "stale," lacking in employee interaction or connection. During introductions to CFO Jackie Loureiro, her feedback on Davis was that he's "hands-off" until problems arise. She wasn't fond of his meetings, a sentiment Davis shared with a joke.

During lunch, Alcott questioned Davis about Loureiro's ability to collaborate with her peers compared to other executives. "She drives half of my team crazy," Davis admitted, acknowledging her blunt nature. Alcott reminded Davis that a CEO's duty is to help executives improve, stating firmly, "And it™s your job." As their conversation continued in subsequent days, they both recognized they had vastly different ideas about how to be a CEO, and about what a CEO™s duties should be. Davis focused on marketing, sales, and M&A, his areas of comfort and expertise. For him, this was the "fun stuff."

In contrast, Alcott effectively managed his senior executives despite finding it unenjoyable. He believed a CEO's primary role is to manage his team, "making sure they work together and aren™t getting bogged down by politics and confusion. When Davis expressed his dislike for these tasks, Alcott confronted him directly. He highlighted Davis's lack of enthusiasm, unproductive meetings, neglect of executive care and team support, avoidance of difficult conversations, and overall apathy towards his role.

Davis, confronted with his lack of enthusiasm and avoidance of leadership duties, acknowledged he wasn't cut out for the CEO role. Motivated by Alcott's perspective, Davis decided to step down, ultimately joining Alcott's team where he thrived in marketing and mergers, finding it to be his ideal niche.

Poor CEOs focus on enjoyable tasks and avoid challenging ones.

Many CEOs and leaders prefer tasks they enjoy over challenging ones they dislike, often due to lacking proper motivation for leadership.

Alan Mulally, former head of Boeing's commercial division and later Ford Motor Company, exemplifies a model business executive. He views leadership as a gift, contrasting with many CEOs who see it as a "right and a reward."

Executives aim for CEO roles either for personal gain (bad reason) or to help others (good reason).

Senior leaders often pursue leadership roles either to improve the lives of those they lead or to attain prestigious executive status, believing they have earned it through their skills and hard work. However, some leaders are irresponsible and neglectful, causing harm to their organizations and employees. These CEOs seek the spotlight and admiration but neglect essential tasks, leaving a significant void. While bad CEOs may have different motivations, they all share one thing in common: ineffectiveness.

"Reward-centered" 

executives often neglect five key responsibilities: developing leaders, managing subordinates, having tough conversations, running effective meetings, and communicating well.

"Responsibility-centered" leaders, on the other hand, embrace the challenges of leadership. In contrast, reward-oriented leaders avoid their duties, falling short in five critical areas:

• œDeveloping the leadership team: Many reward-oriented leaders either delegate this responsibility or fail to establish strong leadership teams, despite its importance to organizational success.
• œManaging subordinates (and making them manage theirs): Some leaders view this as micromanagement, but effectively managing the people you lead is crucial for keeping them on track and working efficiently.
• œHaving difficult and uncomfortable conversations: While no one enjoys confrontation, managing a team involves maintaining relationships with a variety of personalities, making such conversations essential.
• œRunning great team meetings: Although many people dislike meetings, quality meetings are essential for making important decisions and addressing pressing issues.
• œCommunicating constantly and repetitively to employees: Leaders must consistently inform their employees of their expectations and the organization's needs.

Servant leadership: Leadership is serving others

Servant leadership is about putting others first. It's a key aspect of leadership where the main goal is to serve those you lead. This concept applies to all leaders, not just top executives. True leadership focuses on the needs and growth of the people being led.