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During my first month as CEO, I had lunch with a few clients, and what I learned would be an understatement.
These customers had high expectations for our technology to help their business, but by talking to them directly, we discovered some changes they could make to help them get the most out of the software.
In other words, it’s the moment every new CEO waits for. They have a rare opportunity to look at the business — a chance to see things with fresh eyes and make real change. But it won’t last forever.
I recently experienced this first-hand: After a two-year hiatus, I was re-appointed CEO of the point-of-sale and payments platform I founded, and tasked with putting the platform on a path for long-term, profitable growth.
While my situation as a returning founder is unique, the same fundamental principles apply to anyone taking on a new CEO role. For those taking on this job, here’s how to seize that “fresh perspective” moment:
Related: A step-by-step guide to achieving organizational alignment
Ask before you do anything
During my time away from CEO I worked in environmental conservation, and if there’s one thing I learned working with people trying to solve complex global problems, it’s to start by listening: Listen to people, gather information, and collaborate on solutions.
The same is true for a new CEO who has to start by building trust. As a returning founder, I had an advantage in that respect. Still, there have been a lot of new faces and voices since I left.
So how exactly should a new CEO listen?
Don’t come to meetings with an agenda that ignores tough questions or concerns. Instead, emphasize that you’re welcome to hear about anything that might be going wrong with your product or strategic direction, or low employee engagement. People should feel that you’re looking at the business with a critical eye, without any illusions that things are perfect.
For example, when Oscar Munoz took over struggling United Airlines in 2015, he was focused on cross-country Listening TourI talked to the mechanics, I talked to the baggage handlers, I talked to the flight attendants. I took a similar approach. I held a leadership offsite right away where I was able to spend time with each member of the executive team and talk to the employees.
We also did customer visits across Australia and New Zealand, meeting people with the ideal profile for Lightspeed and listening carefully to the commonalities that emerged.
We also listened to our directors and shareholders – getting their outside perspective was invaluable not only to understand how the market perceives our business, but also how we can continue to add value in their eyes.
A new CEO may be tempted to charge in guns blazing, but this initial listening phase is valuable. Companies across industries are looking for CEOs and executives. Good listening skillsAnd the benefits can be dramatic. Organizations that listen to and act on employee feedback 3x chance You’re 10 times more likely to meet or exceed your financial goals and have higher customer satisfaction and retention rates.
Remember, it’s not enough to just say you listen — it’s important to hear different perspectives and work with your leadership team to come up with a solid plan of solutions that you can act on with urgency and a short time to act.
Don’t miss the chance to act
One of the biggest advantages for a new CEO is that they have a path to follow to pivot the business, and it’s important to follow that path in the first 90 days.
I didn’t return to the CEO role to be popular — I can still be an empathetic, compassionate, and caring leader — but at the end of the day, a CEO’s job is to be effective, not to be liked.
When new leaders are brought in to transform the company, it is essential that they hold themselves accountable, even if that means doing unpopular things at times. Listening must be a precursor to action, or it will be an empty gesture.
Satya Nadella became CEO of Microsoft in 2014 and saved the tech giant from irrelevance. Shift focus quickly It pivoted from selling software to cloud services, and this and other dramatic changes have made Microsoft one of the most valuable companies in the world.
Sometimes it’s necessary to let go of long-standing company traditions and practices. Before I returned, one of our annual events was a sales summit that brought employees from around the world to our headquarters. We adapted the format and made it virtual, achieving significant operational efficiencies in the process.
Back when the summits brought hundreds of people together and helped build our culture, it made financial and business sense to bring everyone together, but we could no longer justify such a large expense if it wasn’t directly benefiting our customers.
Research suggests When a new CEO makes changes early on, it can have compounding effects on the business: What happens in the first 90 days will determine the company’s trajectory for the next three to five years.
And people expect their leaders to take action. To employees, decisiveness is one of the top three qualities of effective leadership. World Survey The CEO is described as “decisive.” 12 times the odds Delivers high performance.
Related: How to Align Business and Customer Interests for Long-Term Success
How to know if everything went well
Of course, pulling this off won’t be easy, and the early days of a new CEO are rife with potential pitfalls.
First, their arrival can be unsettling for team members. Everyone has a different tolerance for change, so it’s important to show empathy and acknowledge that it might not be easy, especially if the change is significant.
The new leader should also honor the achievements of those who helped build the company. A little humility goes a long way here. I appreciate the hard work my predecessor did. After all, he set us up for future success by implementing tough operational changes.
Ultimately, seizing a “fresh perspective” moment as a CEO means mastering the balance between appreciating what made your company great and making the necessary changes.
How do you know if you get it right?
When people say they are aligned with the business, and you feel aligned too, it doesn’t mean there’s complete agreement. But after seeing each other’s perspectives, everyone buys into the plan to move things forward. There’s energy and enthusiasm to move in a new direction. And there’s a sense that this builds on the input and effort that’s gone before.
To get all of this right, new leaders need to make the most of fresh perspectives—first by taking the time to listen, and then quickly taking action.