Breaking Even and Creating Value
The priority for newly named CEOs is to break even as soon as possible. In other words, they must reach the moment when they bring as much value to their new company as they have received from it. When CEOs are asked to...
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Breaking Even and Creating Value
The priority for newly named CEOs is to break even as soon as possible. In other words, they must reach the moment when they bring as much value to their new company as they have received from it. When CEOs are asked to estimate how much time it takes for a recently promoted or hired executive to attain his or her break-even point, the average answer is 6.2 months. This number depends, of course, on the situation that a CEO inherits. If there is a need to turn around a company in crisis, new CEOs create value as soon as they begin the position. However, when an external candidate is recruited by a very successful company, it takes longer for a CEO to break even. No matter what the situation may be, the objective remains the same: waste no time on getting settled in and start creating value.
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