What Makes a Great Chief Executive? What Makes a Great Chief Executive? Material Consists of 80% Recycled Certification
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Material consists of 80% recycled post-consumer fibre; 10% TCF (totally chlorine free); 10% ECF (elemental chlorine free). FSC certification. NAPM recycled certification. Paper mill accredited with ISO 9001 and ISO 14001 status. All responsibilities to the local environment and manufacturing processes are strictly monitored. The Whitehead Mann Leadership Debate Leadership Mann Whitehead The What makes a great Chief Executive? Chief great a makes What THE WHITEHEAD MANN LEADERSHIP DEBATE LEADERSHIP MANN WHITEHEAD THE What makes a great Chief Executive? Chief agreat What makes Contact Carol Leonard All rights reserved. No part of this publication Whitehead Mann is one of the world’s best-known leadership consultancies may be reproduced, stored in a retrieval system, working with clients to create value through people. As an independent, Whitehead Mann or transmitted in any form or by any means, international partnership, we work as a single team to deliver deep sector Ryder Court electronic, mechanical, photocopying, recording and functional expertise. We are authorities in the areas of leadership; CEO 14 Ryder Street or otherwise, without the express permission concerns; CEO characteristics and career issues at Board and CEO level. London SW1Y 6QB of the copyright owner. Our long track record is built on our contacts, judgement, the quality of our t +44 (0) 207 024 9000 © The Whitehead Mann Partnership LLP board placements and our ability to identify the CEOs of tomorrow. Over 90 f +44 (0) 207 024 9001 of Europe’s top 200 companies and most of the FTSE 100 companies and e [email protected] Fortune 500 organisations have retained Whitehead Mann. www.whmllp.com www.whmllp.com Contents Acknowledgements 4 Interviewees 5 Foreword 7 Introduction 9 Summary 10 Characteristics of great CEOs as identified by their peers 14 Other aspects of success 20 A great CEO: the ten X Factors 22 Best of the boardroom 26 The definition of success 29 Situational leadership 31 Issues 32 Conclusion 37 Methodology 38 4 The Whitehead Mann Leadership Debate Acknowledgements Our thanks are due to all the interviewees who volunteered time during their busy schedules to take part in this project. The interviewees all hold senior positions within one or more organisations, with inevitable pressures on their availability. But they all recognised and appreciated the significance of the questions being raised by this research, and felt it important to take part and express their views. Some asked to remain anonymous but many of them are listed on the opposite page. Thanks are also due to the many partners within Whitehead Mann who carried out the interviews and produced such rich and thought-provoking feedback. The views expressed are those of our participants and not necessarily of Whitehead Mann or its partners and are, by definition, highly subjective. What makes a great Chief Executive? 5 Interviewees Name Company Name Company Marcus Agius Barclays Mike Humphrey Croda International Mark Andrews NG Bailey Bob Ivell David Lloyd Leisure Sly Bailey Trinity Mirror John Kelly Gala Coral Group John Barton Next Christian Koefoed-Nielsen Sir Winfried Bischoff Citigroup Guy Leech Treasury Holdings Properties Sir Victor Blank Lloyds TSB Group Rob Leith Standard Bank Tom Bloxham, MBE Urban Splash Group Alan Lovell Infinis John Botts Botts & Company Derek Mapp Informa Tim Breedon Legal & General Group Michael Marx Development Securities Dr David Brooks Oxitec Bronek Masojada Hiscox Nick Bubb Pali International Brian May Bunzl Brian Buchan Burton’s Foods and R&R Icecream Dr John McAdam Simon Burke Superquinn Sir Callum McCarthy Mark Clare Barratt Developments David McCarthy Toby Courtauld Great Portland Estates Simon Melliss Hammerson Bob Cowell Makinson Cowell William Mills Citi Jonson Cox AWG Iain Napier Imperial Tobacco Group Eric Daniels Lloyds TSB Group John Napier RSA Insurance Group Sir Crispin Davis Reed Elsevier Group Bill Oliver St Modwen Properties Dane Douetil, CBE Brit Insurance Holdings Simon Oliver Dairy Crest Group Jan du Plessis British American Tobacco Sir John Parker National Grid Richard Entwistle Jarvis Harry Platt Workspace Group David Fischel Liberty International Quintin Price BlackRock Martin Flower Croda International Tony Pryor Halcrow Group Katherine Garrett-Cox Alliance Trust Fernando Ribeiro F&C Asset Management Sir Christopher Gent GlaxoSmithKline Anne Richards Aberdeen Asset Management Sir Peter Gershon, CBE Premier Farnell Sir John Rose Rolls-Royce Martin Gilbert Aberdeen Asset Management Francis Salway Land Securities Group Charles Goode ANZ Hector Sants Financial Services Authority Richard Gregory, OBE Yorkshire Bank Nicholas Scarles Grosvenor Group Anthony Habgood Bunzl and Whitbread Mark Selway Weir Group Drummond Hall Mitchells & Butlers Tony Shiret Credit Suisse Sir Philip Hampton Sainsbury’s Timothy Stevenson Travis Perkins Dr Alan Hearne RPS Group Peter Sutherland, KCMG BP Keith Henry Regal Petroleum Nimble Thompson NG Bailey Stephen Hester The British Land Company David Turner WSP Group Terry Hill Arup Group John Varley Barclays Sir Christopher Hogg John Von Spreckelsen Merchant Equity Baroness Sarah Hogg Sir Robert Wilson BG Group Christopher Honeyborne Dyson Group Roger Yates Henderson Group Nigel Hugill Lend Lease Europe 6 The Whitehead Mann Leadership Debate What makes a great Chief Executive? 7 Foreword We can all spot the successful chief executive, but what are the qualities that a great chief executive needs for success? That is the interesting question which Whitehead Mann’s latest research has set out to explore. The greatest business leaders are those who set a clear vision, prepare coherent plans to achieve their aspirations and lead their team to successful delivery. They need to do this against a backcloth of sometimes competing expectations from several constituencies – their board, their shareholders, senior executives, staff throughout the business and the wider community. Recognising that any chief executive operates their business in an environment which is partly out of their control, the key qualities must include an ability to lead, inspire and motivate people, the ability to communicate well to all shareholder groups, and the ability to be fleet of foot. As we have seen recently, the external environment can change through economic or political circumstances, unexpectedly and quickly. As a chairman, you know how blessed you are if your chief executive exhibits these skills. It makes our role much more satisfying and perhaps a little less demanding. This report from Whitehead Mann is timely and relevant because it demonstrates how to recognise what makes a great leader. Sir Victor Blank Chairman Lloyds TSB Group 8 The Whitehead Mann Leadership Debate What makes a great Chief Executive? Great chief executives are those who have a clear vision and integrity of purpose What makes a great Chief Executive? 9 “ The idea that there is one model for the ideal CEO is quite wrong.” Sir Callum McCarthy Introduction Having a vision and clarity of purpose is without with soaring commodity prices, have created an doubt the hallmark of leadership, whether in entirely new and challenging scenario in which the world of business, politics, the arts, sport or businesses have to operate. science. There are also different pressures on Look back at some of the great business leaders contemporary leaders; the glare of publicity, of the twentieth century and you will see that the scrutiny of a stock market listing and the they all stood for something. All have one pressure for instant returns make it harder than defining feature – vision. Henry Ford, Andrew ever to lead a business, to invest for the future Carnegie, Giovanni Agnelli, Michael Marks and and to implement a long-term strategy. The Tom Spencer, John Sainsbury, Charles Rolls and pressure of a 24/7 society and the accompanying Henry Royce all built superb businesses and left a communications technology means there is remarkable legacy. And is it too soon to mention never any escape. Does this mean that leaders the legacy of Steve Jobs, or Larry Page and today need different skills? Do they have to be Sergey Brin? better equipped than ever before? Have some business leaders turned away from the world Are there leaders today who will leave similar of the plc? legacies? Does short-termism coupled with accelerated pace and tougher economic In a series of in-depth interviews with some of conditions mean it has become more difficult for the top business leaders in the UK, and several individual business leaders to make an impact? A senior members of the investment community, fragile financial system and potential recession in Whitehead Mann’s study sets out to explore some the western world, increasing demand from more of these issues. affluent populations in China and India, coupled 10 The Whitehead Mann Leadership Debate Summary Whitehead Mann undertook this study of a number of different skills including creativity leadership to explore in greater detail what and the ability to analyse data. makes a great CEO. We interviewed more than 80 people including FTSE 100 chief executives As one interviewee said: “People often think and chairmen, City fund managers and financial that you can only be either creative or numerate. analysts, to find out what they believe those The reality is that many of the very best leaders qualities are and how to recognise them. are those who combine a range of skills from both sides of that divide. They can communicate We also asked them which CEOs they admire well and they can adapt to different stages of and respect the most, and why. Of the 100 the business cycle. The most crucial quality of business leaders cited by our interviewees, all, however, is to be able to inspire the people eight individuals were awarded three or more around you – that’s the way to create a truly commendations. These eight have all either run good, competitive and sustainable business. The or are still running long-established businesses, best leaders are actually really rather nice, decent, operating mainly in mature sectors.