New CEOs are under immense pressure to make large-scale changes quickly from the board, investor community and management team. Additionally, CEOs stepping into the role have a strong drive to make an early impact, demonstrate their value and fix what’s not working.
However, the high internal and external pressure can lead many CEOs to make a critical mistake in their first 90 days: taking action too quickly. This can apply to all new C-Suite leaders.
Why immediate action can be an issue
Our recent research shows that strong relationships are the basis for achieving maximum results. It highlights that developing connections built on trust and care is the foundation of a high-performing organization.
If CEOs prioritize making bold changes in their first 90 days, they often have not first built the relationships to achieve the highest results. Specifically, if CEOs immediately reorganize departments, replace leaders and launch initiatives before understanding the full depth of the company culture, they risk buy-in even if changes are positive.
These are the top three issues when CEOs overemphasize action in the first 90 days:
- Faulty decision-making: When new CEOs make decisions before they understand the company, they base them on assumptions rather than data. This can lead to misdiagnosis and uninformed decisions.
- Trust breaks down: New CEOs don’t automatically gain trust from the C-Suite, leaders and company; they must build it. If a CEO’s initial focus is to make extensive changes before establishing trust, people can get frustrated, and trust is broken.
- Replacing leaders too quickly: If new CEOs make rapid judgment calls to replace C-Suite team members without first assessing their talent, it can cause unnecessary disruption and destabilization. Instead, CEOs must balance assessment with taking action to get the right team in place.
Why prioritize connection in the first 90 days
While it may sound counterintuitive, CEOs must slow down before they go fast. CEOs who prioritize connection in their first 90 days, through listening and learning, build their ability to understand and improve the company. Through our research, we discovered that connection is the superpower for improving teams and culture.
Connection is the center of the 5Cs model, a new, scientifically validated framework that captures the five crucial elements for creating high-performing teams and thriving cultures. The 5Cs model was developed through extensive research and experience working with executive teams and incorporates the following elements: Connection, Candid Communication, Clarity, Collaboration and Contribution.
Connection reflects the level of bonds everyone feels with each other. It encompasses the subfactors of trust and well-being. Trust refers to the trustworthiness and deep sense of mutual trust that teams and organizations foster. Well-being emphasizes how much people feel their physical, mental and emotional health matters to the team and organization.
At its core, Connection starts with two critical questions:
- Do you care about me?
- Can I trust you?
Connection is foundational to building the next layer of a high-performance culture: candid communication. For CEOs to cultivate open, honest communication, teams and organizations need to feel some level of connection first.
How CEOs diagnose culture in their first-90 days
The goal of the first 90 days is to build a complete picture of the company culture: the strengths, challenges and how to transform it.
1. Declare your intention for the first 90 days
Key points:
- Be clear that the first 90 days will be on a learning and listening journey. As the CEO, you will ask many questions and listen first before taking action.
- Acknowledge that people are expecting change, especially if your charter as a CEO is to transform the organization. However, you must do your due diligence to understand what’s not working before making decisions.
- Your goal at the end of the 90 days is to ensure you take the right action aligned with the data and what you learn from all levels of the company.
2. Follow through on your intention
This includes:
- Listen and learn from people at every level and across the organization, from the front line to leaders.
- Conduct town halls or listening sessions at different locations throughout the company.
- Incorporate opportunities for people to see, meet and get to know you so that everyone connects with you as quickly as possible.
3. Actively listen to learn about the culture
One of the most impactful ways to connect is through truly listening to others, which builds trust. Actively listening, meaning being fully present and asking curious questions, provides the opportunity for the other person to feel completely seen and heard, which is incredibly connecting.
To actively listen, focus on the other person speaking as much as possible. Tap into your curiosity for them. Ask simple, open-ended questions that start with “what” or “how” to invite deep thinking and exploration. Start with questions about:
- How people work together within teams and cross-functionally
- How feedback and conflict are handled
- What gets recognized and rewarded
- What happens when something goes wrong
- What people are proud of about their work
- How connected people feel to the company’s vision and values
Shifting from listening to action
When CEOs prioritize connection in their first 90 days, they earn the organization’s trust. By fully listening and integrating what they learned, CEOs develop a clear understanding of how the organization operates. They can then articulate a compelling vision and strategy that reflects what’s truly possible for the organization.
CEOs are often surprised by what happens next. Resistance to the changes is lower than anticipated. Enrollment in the vision is high. Alignment with the direction happens faster. When people feel like the CEO has fully heard, seen and acknowledged them, they recognize they helped shape what’s next for the company.
Strategically slowing down to build connections in the first 90 days enables CEOs to move faster to attain the highest results.
Opinions expressed by SmartBrief contributors are their own.
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