Becoming a CEO

What Does a CEO Do?

The Chief Executive Officer (CEO) is the highest-ranking officer in a company, responsible for its overall strategy, operations, and success. CEOs set the vision for their organizations, making critical decisions about goals, growth, and long-term direction. While their role varies depending on the size and type of business, key responsibilities include:

• Developing and communicating the company’s vision and strategy.
• Building and maintaining relationships with stakeholders, including investors, employees, and customers.
• Overseeing major operational and financial decisions.
• Acting as the public face of the company.

To gain a deeper understanding of the CEO’s strategic role, explore this Harvard Business Review article on executive leadership strategies.

Common Career Path to Becoming a CEO

Few people land directly in the CEO’s chair; most follow a deliberate and strategic path. If you are looking for a quick journey to the top, you may need to temper your enthusiasm. The average CEO works for 24 years from the time she or he begins a career to taking over as chief executive, according to a 10-year study of 17,000 C-suite executives conducted by The CEO Genome.  A study by Spencer Stuart notes that over the past 20 years, 85 percent of S&P 500 CEOs have ascended from four “last-mile” roles: COOs, divisional CEOs, CFOs and “leapfrog” leaders promoted from below the C-suite.

Common steps:

1. Earn a Strong Educational Foundation: Many CEOs begin with a bachelor’s degree in business, finance, or a related field. Advanced degrees, such as an MBA, can also provide valuable skills and networking opportunities. Considering going back to school for your MBA? Check out schools that trained Fortune 500 CEO’s from U. News. .
2. Gain Diverse Work Experience: CEOs often have experience across multiple departments, such as operations, finance, marketing, and sales.If you are looking to become a CEO, be careful that your success in a particualr area does not put you on a path to functional speacialization as you grow. Broad perspective helps them make informed decisions. It can be helpful, however to gain deep knowledge around a market (such as healthcare).
3. Develop Leadership Skills: Early opportunities to manage teams and projects can set the stage for future leadership roles. Put together a team to support your development. A career coach (paid) can help you develop specific skills and improve your performance. A mentor (nonpaid) shares their knowledge, experiences, and wisdom to help you develop holistically. Mentoring programs can be formal or informal. Finally, once you are in your first job identify a potential sponsor, sich as a manager or executive who can advocate for your career advancement within the organization. 
4. Climb the Corporate Ladder: Progression through roles such as department head, VP, or COO (Chief Operating Officer) is common. These positions offer valuable experience in decision-making and strategic planning. Conside building a career map; this is something you can adjust as your career evolves, but allows you to be intentional in your career progression.
5. Network Strategically: Building strong relationships with mentors, colleagues, and industry leaders can open doors and provide support as you advance. Check out LinkedIn Learning for courses on strategic networking.

A Day in the Life of a CEO

While no two days are the same, a CEO’s schedule is often a mix of high-level decision-making, strategic planning, and relationship management. Here’s an example of a typical day:

• Morning: Review key performance metrics, meet with senior leadership, and set priorities for the day. Learn how CEOs analyze performance in this McKinsey article.
• Midday: Attend board meetings, meet with external stakeholders, or represent the company at industry events.
• Afternoon: Collaborate with teams to address challenges, review budgets, and refine strategies.
• Evening: Reflect on the day’s progress and prepare for upcoming initiatives. Many CEOs also prioritize continuous learning by reading industry reports or taking courses. MIT Sloan’s executive education offers excellent resources for aspiring leaders.

Essential Traits and Skills for Becoming a CEO

Successful CEOs share several common traits and skills. To thrive in this role, focus on developing the following:

• Visionary Thinking: CEOs must see the big picture and guide their organizations toward ambitious goals.
• Adaptability: In a rapidly changing world, the ability to pivot and embrace new challenges is crucial.
• Communication Skills: Clear and persuasive communication is essential for inspiring teams and securing stakeholder buy-in.
• Emotional Intelligence: Understanding and managing emotions—both your own and others’—is key to effective leadership. Learn more through Daniel Goleman’s work.
• Resilience: CEOs face immense pressure and must remain calm and focused under stress.

Examples of Inspiring CEOs and Their Career Paths

• Satya Nadella (Microsoft): Nadella’s journey from an engineer to the CEO of Microsoft highlights the value of technical expertise and a growth mindset. Follow his insights on LinkedIn.
• Mary Barra (General Motors): Barra started as a co-op student at GM, worked her way through engineering and management roles, and became the first female CEO of a major global automaker. Her career exemplifies the importance of perseverance and innovation. Connect with her on LinkedIn.
• Sundar Pichai (Alphabet/Google): Pichai’s rise from a product manager to the CEO of Alphabet underscores the power of product innovation and a user-focused approach. Follow him on LinkedIn.
• Indra Nooyi (Former CEO of PepsiCo): Nooyi’s tenure at PepsiCo showcased her strategic thinking and ability to navigate complex challenges. Her path illustrates the value of combining business acumen with a commitment to sustainability. Discover more about her journey through her LinkedIn profile.

Resources for Aspiring CEOs

• Books: “The Hard Thing About Hard Things” by Ben Horowitz and “Good to Great” by Jim Collins.
• Online Courses: Explore leadership programs on Coursera or LinkedIn Learning.
• Professional Associations: Join groups like the Young Presidents’ Organization (YPO) to connect with peers and mentors.
• Networking Events: Attend industry conferences and workshops to expand your network.

Becoming a CEO requires a blend of hard work, determination, and strategic planning. By gaining diverse experiences, honing essential skills, and building strong relationships, you can chart your path to the top. Remember, the journey to becoming a CEO is a marathon, not a sprint. Start today, and every step will bring you closer to your goal.

In our next “Inside the C-Suite” post, we’ll delve into the world of the Chief Financial Officer (CFO), exploring their critical role in driving financial strategy and ensuring organizational success. Be sure to join our community so that you don’t miss out!