IndustryIssue 03 - 2023MAGAZINE

Cracking C-suite leadership traits

Leadership is associated with cultural approaches to authority, an organization's legacy, and growth opportunities

Human history has yet to have a better century for global trade, industry, or organization building than the one we live in now. The 21st century is an era of technological marvels. But this has only come about through large-scale collaboration between individuals, groups, and organizations. Therefore there is a demand for outstanding leadership than ever before. Corporations worldwide are looking for visionaries who can build high-performing teams.

To remain pertinent in a landscape with multiple factors and challenges, we must all think, connect, collaborate across boundaries, and adapt. However, prevalent beliefs about leadership are compartmentalized and frequently linked to remote authoritative roles or functions, causing many individuals to doubt their leadership abilities. Consequently, there is a lack of leadership and confidence in the traditional process of ‘the leader.’

Necessary skills for 21st century business leaders

Leadership is associated with cultural approaches to authority, an organization’s legacy, and growth opportunities. Recognizing that a multicultural team has diverse perspectives will add value and facilitate strategic decision-making by utilizing this diversity to promote innovation.

A remarkably consistent finding is that business acumen and “soft” leadership skills are now more important at the top than technical and functional expertise. Currently, members of senior management have more in common with their colleagues than with the individuals they manage. To be successful at the C-suite level, one must be an effective communicator, a team player, and a strategic thinker. They must have a global perspective and be able to provide insightful commentary on crucial business decisions.

C-suite, or C-level, is a widely used slang term for senior executives and supervisors at the highest levels of a corporation. They are considered the most significant and influential group within a company. Typically, this level of achievement requires a wealth of experience and progressive leadership abilities. While many C-level executives once relied on functional knowledge and technical skills to ascend the corporate ladder, most have developed the visionary perspectives required to make sound upper-management decisions.

In other terms, the C-suite refers to the top management positions within a company, where “C” stands for “chief.” C-suite occupants include a variety of chief officers (CEO, CIO, CFO, etc.). These highly compensated and influential administrators are, nonetheless, firm employees.

“The C-suite is deemed the most important and influential group of individuals within a company. Reaching this high echelon typically requires a plethora of experience and finely-honed leadership skills. While many C-level executives formerly relied on functional know-how and technical skills to climb the lower rungs of the corporate ladder, most have cultivated more visionary perspectives needed to make sound upper management decisions,” commented Investopedia on this particular leadership profile.

Once an individual reaches the C-suite, leadership skills and a firm comprehension of business fundamentals are more important than technical and functional expertise. Chief Information Officers must be able to construct business models; Chief Financial Officers must develop risk management strategies; and Chief Human Resource Officers must design a competitive succession plan and talent structure. For instance, a CEO would expect a CIO to discuss market expansion and how the company’s systems could support that expansion. What would the difficulties be?

What would be the long-term effects of the necessary IT expenditures to support the expansion? The CIO would be required to respond to these queries.

Decoding the characteristics of ‘C-Suite Leaders’

C-suite executives, including CEOs, CMOs, CIOs, and CFOs, share similar leadership characteristics, including the ability to inspire and align others around shared objectives, an adaptive mindset, and a comprehensive understanding of the business. Even though these fundamental qualities have withstood the test of time, different eras indeed require other skills.

What does effective leadership look like in the context of the present and the future? What additional traits should the executive suite embrace?

A vision for the medium to long term that strikes a balance between prudence and practicability. The ideal C-suite elite is like a chess grandmaster in that they never make a single move but instead plan out multiple game variations in their minds. This attitude is one of their most distinguishing characteristics.

Possessing the ability to motivate, inspire, and align the team with a common objective. Crucial to this is emotional intelligence, which has two facets: first, the ability to perceive, comprehend, and effectively manage one’s emotional state, and second, the capacity to empathize with others and understand their emotional states. Leaving aside this textbook definition, the adage “People join companies; people leave managers” captures the essence perhaps best.

The values of solidarity, proximity, modesty, optimism, and courage have gained traction in society and businesses. According to Edward D. Hess, a professor at UVA-Darden, it is essential to define humility because some people mistake it for passivity or submission when discussing the need for humility and a willingness to listen to dissident voices. Rather, it is the capacity to subdue one’s ego and connect creatively with others. This is the key to having an open mind because it enables you to process new information without becoming defensive. IESE Professor Sebastian Reiche concludes, “Research supports the positive concept of humility, connecting it to curiosity and openness to learning and being taught by others.”

Leaders in the C-Suite must be resilient and able to manage adversity by focusing on the available resources and possibilities. Alongside this, they must also be equipped with a sound decision-making process and pertinent data for the issue at hand. They should also be efficient and results-focused in an increasingly competitive business environment.

Innovative behaviours are closely related to the leadership style of superiors because leaders are the ones who establish organizational goals, make decisions on adopting and implementing new ways of doing jobs, and motivate employees. The crisis has accelerated the profound changes already underway before the pandemic.

They must be capable of teamwork and humanizing the company. Prof. Reiche states, “Successful leadership is the result of a collective and collaborative endeavour, so there is an element of ‘Batman’ in this concept. Batman lacked superhuman abilities such as flight, laser vision, and lightning-fast speed, but he was intelligent enough to surround himself with those who did – and still hold his own. No leader can combat the crisis independently without a concerted effort to physically separate, wear masks, make responsible decisions, and pursue collaborative efforts to develop treatments, save small businesses, and adapt to virtual realities.”

They must always be open-minded and transparent in communication. Not only must corporate goals and values be clear, but they must also be communicated. This is why C-suite leaders must communicate clearly and empathetically and establish forums for connection rather than one-way channels.

In this regard, IESE Professor Yago de la Cierva asserts that excessive communication is preferable to silence: “Silence never works. Don’t be hesitant to admit ignorance. Even if we believe we’ve said everything we know, keep insisting. Transparency is the only factor that is effective”.

Briefly, C-Suite Leaders are the foundation of any organization. Their leadership and management help the business attain its objectives and thrive. To succeed in the future, companies must prioritize leadership by embracing future demands.

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