What makes an effective CEO

John Smit,

According to Rezelman, many board members are increasingly realising that their firm's success is dependent on their CEO's ability to influence the external environment/industry in which their firm operates to ensure increased competitiveness and presence.

"Strong leaders can influence whole industries, versus just their own firms, by acting as spokespersons for the industry and lobbying role players (including government) to change. However, in order to be successful, this requires gravitas, presence and recognition."

Rezelman says the traits of leadership are generic and not specific to any walk of life, whether that leader operates in the political, business, community or sports field.

"In business, there has been a trend to appoint people on their qualifications and relevant experience and not necessarily their behaviour, of which leadership is one component. Leadership skills are intrinsic and do not necessarily require in-depth industry experience as experienced people can be appointed to provide support."

Short-term vs long-term goals

He adds that in Smits case, sports leadership skills are all about mobilising a team around season goals (longer term) rather than just for game goals (shorter term), which is relevant to today's business environment.

"An effective leaders' outlook is more focussed on the long-term, questioning the way things have been done in the past to seek more effective ways of doing things. Conversely, management typically tend to operate within the existing business parameters (shorter term) and traditionally minimise change to ensure that staff are aware of what is expected of them in following standard operation procedures."

However, says Rezelman, a strong leadership skill is only one of the qualities of a good CEO.

"A solid CEO should demonstrate the following: evidence of analytical ability and reasoning skills; a good attention to appropriate level of detail (holistic understanding rather than an in-depth knowledge of all functional areas under his/her control); persuasive and assertive communication styles, yet able to listen to and seek advice when required; the ability to spot talent and appoint experts around him/herself; be innovative and brave."

"The overall South African environment is facing rapid change and this volatility requires leaders that can adapt their organisations accordingly. Effectiveness (doing the right thing) is becoming increasingly more important than efficiency (doing things right) and this is where strong leaders who can think on their feet will succeed," concludes Rezelman.