5 Qualities Of A CEO That Make Them Awesome At Their Job

If you were to narrow down the ideal qualities of a CEO to five items, what would you choose to include? Many would consider leadership, confidence or communication: these are certainly important CEO qualifications. But, do they make a good CEO? Maybe not: for example, according to research published in Harvard Business Review, confidence will make a CEO twice as likely to get hired, but it doesn’t seem to impact how well they do the job.

Conversely, a good CEO is someone who’s capable of juggling several critical duties and also remain trusted and respected decision-makers by others – particularly his or her colleagues and employees. To do this, and sustain it, you need to possess or build those less-than-tangible characteristics.

So, if you intend to become a good CEO, or if you’re trying to get even better at your job as the first in command, develop these five important skills.

Here are 5 qualities of a CEO:

Foresight

Foresight means having critical thinking when it comes to future planning and possibilities. It’s a characteristic that’s useful to all of us in our work and personal lives. But, for CEOs especially, it’s twice as important. You’re dealing with a lot of money, investors and business activities – usually all at once – and you’re also responsible for steering the company in the right direction. Having the ability to forecast what could happen in a few months or even years from now, and prepare for the possible outcomes, is one of the most invaluable characteristics of a CEO.

And of course, sometimes, it’s about making the right decision, even if it’s counterintuitive. For example, Shopify CEO Tobias Lütke (recent controversy aside) made a smart move in deciding to consciously slow Shopify’s growth in order to keep it manageable for him.

So, in order to have better foresight:

• Think outside of the box. Sometimes, a solution is unexpected or you can reach a solution in a different way than you anticipated. Don’t rule out any course of action unless it’s truly non-feasible.
• Spend time to weigh the pros and cons of each decision. Speedy decision-making is often praised in the workplace, but what’s more important is to slow down every once in a while and make sure you’ve considered every scenario for the longer-term success of the business.
• Keep abreast of developments. With so many things going on in your company and the market, it’s easy to focus on some areas, and neglect others. Find a system that allows you to monitor various changes and leave sometime in your calendar just for reading and learning about various topics and news.

Adaptability

Think of the story of Blockbuster, a once fast-growing, international company worth billions that filed for bankruptcy protection in 2010. Despite its CEO John Antioco making some efforts to change the business model and compete with growing threats such as Netflix and Redbox, BlockBuster as a company (and its subsequent leadership) was slow to adapt and never adjusted its established methods of making money.

This isn’t just a lesson in adapting to changing markets or, in this case, the digital revolution. It’s also a matter of adapting to the circumstances around you, i.e. the frustration of board members about declining revenue, the controversies or the conflicts that may appear occasionally, and more. You need to adapt your strategy to ensure buy-in from the right people at the right time. This would be an indication that you possess one of the important qualities of a CEO.

So, to be more adaptable:

• Change mindset. Whenever you face a change, think about any positive aspects first. For example, if your COO suddenly quits, it might be an opportunity for restructuring or bringing someone better along. Keep an open mind and try to see challenges as opportunities.
• Build scenarios and prepare. Related to the ability of foresight, being adaptable is to often anticipate what you’ll need to adapt to. That way you won’t be taken by surprise and make decisions under pressure. Take it from Warren Buffett and spend substantial chunks of time just thinking and preparing. Sometimes, you may find that you’ll have to prepare to resist change in a particular scenario.
• Push yourself to improvise. Some people are naturally adaptable, while others prefer structure and predictability. As a CEO, you’ll definitely deal with change one way or another, so if you don’t feel adaptability comes naturally, push yourself to experiment (e.g. by changing the agenda of a standard meeting, discussing an unexpected business move or taking a calculated risk).