The ability to lead comes more easily for some. There are those who are natural born leaders, and those who develop the skills necessary to become a person of influence. We can all learn from mistakes made. The important thing is to use those lessons to make your company stronger.
Kathleen Kim, Inc.com contributor, discusses things to learn from bad chief executive officers.
Leadership Lessons from Bad CEOs
Adapt Your Business
"No company survives without adapting, yet so many CEOs think they can keep on doing what got them success in the past," Sydney Finkelstein, professor at Dartmouth, told Inc.
Kim provides the example of Best Buy. Former CEO Brian Dunn refused to change the business model for Best Buy.
Whether it’s marketing tactics or global expansion, it’s important to keep current on the times. If you don’t, you may not survive.
Your Company isn’t Your Personal Piggy Bank
Money that comes into your company is meant to be used strictly for business purposes. It’s not to be used to pay your mortgage, buy groceries, or other items that have nothing to do with your business.
Don’t Buckle Under Pressure
Most leaders can only take so much pressure before their performance slides while others deliver their greatest successes when times get tough.
"Pressure to grow can lead some people to go over the line and make a decision that jeopardizes the entire company," Finkelstein said.
Own your mistakes and take responsibility for your decisions and actions.
Invest in Your Team
Employees want to develop and learn new skills, and establish a career path. If you don’t give them the opportunity, they will find it at another company. It’s necessary to invest time and money into your employees to succeed.
Understand What You are Getting Into
Research the company before you accept a leadership position. Kim provides the example of Rodrigo Rato, former chairman of Bankia. He is reportedly under investigation for fraud, price fixing, and embezzlement. "Not doing sufficient due diligence on Bankia, he probably didn't understand just how bad a condition the bank was in when he accepted the job," Finkelstein said. Do your research and don’t make the same mistake.
We can all draw inspiration and knowledge from the experience of others. Sometimes we learn the best lessons the hard way.
What lessons have you learned the hard way?
