4th The Ramblings of a Representative – About Ineffective CEOs
Having worked in various companies and encountered numerous CEOs, I must regrettably admit that I have never met a truly exemplary CEO in my experience. Instead, I have come across many ineffective CEOs. I hope that by discussing these ineffective CEOs, I can provide some insights and criteria for identifying good CEOs and achieving sound management in the future.
1. CEOs Who Refuse to Learn About Modern Technology
For instance, CEOs who are not familiar with how to use computers and refuse to get a competent secretary to handle these matters. Some even stubbornly claim, “I’m a paper person. Even government offices still use paper,” and are completely unashamed of their ignorance.
2. CEOs Who Don’t Pursue Continued Education
CEOs who believe that because their management was successful in the past, it will continue to be effective without any change. They cling to past successes and are under the illusion that they are still capable, neglecting the latest industry news. Eventually, they fail to update their systems, making them outdated. The company faces numerous challenges, such as IT and digital transformation, which require constant change. If the CEO doesn’t lead these changes, the company’s management will ultimately suffer.
3. CEOs Who Surround Themselves with Yes-Men
Being a CEO can be lonely and challenging. CEOs must endure constant scrutiny from employees, painful criticisms from shareholders, and harsh slanders from some individuals. Some CEOs, in their desire to avoid painful feedback, tend to surround themselves with people who always agree with them, creating a circle of sycophants. This behavior often leads them to fill positions like vice president, senior managing director, and other key roles with family or their faction, and they intentionally avoid hearing any disagreeable opinions. Such a CEO ends up becoming like a naked king, convinced that there are no issues within the company simply because they don’t hear about them. A truly good director or excellent subordinate should be someone who identifies and provides advice on internal problems.
4. CEOs Who Blame Employees for Company Failures
I recall a time when I was working as a part-timer and had a meeting with the head of sales, who was notorious within the company for being difficult and unreasonable. During the meeting, the sales head, with a disgruntled sigh, said, “The sales are down… it’s your fault.” I was astonished and wanted to retort, “Are you kidding me?” Declining sales are not the responsibility of part-time workers but rather the fault of the management. Often, CEOs, unwilling to admit their own inadequacies, prefer to blame others for the failures of their management.
5. CEOs Who Can’t Give Effective Speeches
A CEO without a good command of language will struggle to persuade or negotiate with employees and clients. When new products are developed, they need to be explained in terms of their superiority and differentiation to clients and users. Poor explanation skills will likely prevent the product from selling unless it is exceptionally outstanding. The same applies to internal communications and company newsletters. Effective writing skills are similar to effective speech skills, so if you notice a CEO lacking in writing skills, be cautious. However, this does not apply to extremely specialized industries where communication with others is minimal.
6. CEOs Who Insult Their Employees in Front of Clients
I once met a CEO, Mr. S, of a real estate company, who had a poor reputation among colleagues. One day, while greeting in the company’s executive office, I witnessed him angrily berating several employees in front of me and my colleagues. By doing this, he seemed to want to show us his power and influence within the company. Insulting your own employees in front of clients is essentially an admission that you lack judgment in hiring. A good CEO should be able to proudly boast about the competence of their employees and the bright future of the company.
7. CEOs Who Lack Planning
A company needs a management plan to thrive. CEOs who lack planning skills are ultimately disengaged from effective management. For example, if a CEO casually decides to go out drinking with a business partner without any structure or schedule, this reflects a lack of planning. A good CEO manages a minute-by-minute schedule and never arrives late. Entertaining business partners should be kept to a minimum and done efficiently.
8. CEOs Who Don’t Follow the Law
Companies that engage in unfair overtime or exploitative practices will eventually fail. CEOs who think, “It’s okay because it won’t be discovered,” are unaware of the influence of online reviews and employee feedback. Nowadays, job seekers always check company reviews. If a company is listed as having unfair practices or harassment, it will likely be avoided. Even if a company has cleaned up its act, past negative reviews can permanently damage its reputation until they are removed. To attract talented young professionals, companies must be genuinely good places to work.
9. CEOs Who Don’t Manage or Supervise
In a past job, the CEO noticed that about 2 million yen worth of products were missing from the warehouse but didn’t bother to search for them. Whether it was due to laziness or the belief that the items would eventually show up, the CEO’s failure to investigate led to discovering that employees had stolen the items. Proper warehouse management and crisis awareness are essential, and the failure to implement these is a responsibility of the management.
10. CEOs Who Claim Credit for Employees' Achievements
A CEO I worked for often made claims such as:
“It took me ten years to develop that person.” → The achievement was the result of the employee’s own effort, not the CEO’s.
“I made that company do that.” → Who would believe that?
“I have helped five employees become independent.” → The employees left the company because they had given up on it, not because the CEO facilitated their independence.
In summary, these are observations I have made. Be cautious of such ineffective CEOs and use these insights as references for future management.