One of the most popular sessions at Microsoft’s annual internal conference used to be a panel discussion titled, “So, You Want to Be a CTO…”. The room would be packed with hopeful techies, excited to learn about what it’s like to be a CTO at Microsoft from the real CTOs. The panelists were real stars: smart, articulate, thoughtful, experienced, and confident. I remember standing in the audience, in awe of them, wanting to be them.
The Allure of Executive Leadership
Many professionals, especially those already on the management career path, aspire to become the senior-level enterprise leaders we call “executives”. Being a senior leader in an organization provides a unique combination of influence, growth, and rewards that can be highly fulfilling. But how do you become one of these leaders? Do you need skills, experience, luck? Is it about knowing the right people?
Understanding the Role of an Executive
Let’s start with some definitions. Peter Drucker, a prominent management consultant and author, defines an executive as someone who is responsible for making decisions that have a significant impact on the performance and results of an organization. Executives are accountable for their decisions and actions, and their primary task is to ensure that the organization achieves its objectives. This broad definition is explored further in Drucker’s book, “The Effective Executive”.
Transitioning from Mid-Level Manager to Executive
Scope of Responsibilities
- Executive: Executives, such as CEOs, CIOs, CTOs, and VPs, are responsible for setting the overall strategic direction of the organization. They focus on long-term goals, company-wide policies, and major decisions that affect the entire organization.
- Mid-Level Manager: Mid-level managers, such as department heads or team leaders, oversee specific departments or teams. They focus on implementing the strategies and policies set by executives and managing day-to-day operations within their area of responsibility.
Decision-Making Authority
- Executive: Executives have high decision-making authority and are involved in making critical decisions that impact the entire organization. They have the final say in major strategic initiatives, budget allocations, and organizational changes.
- Mid-Level Manager: Mid-level managers make decisions within the scope of their department or team. Their decision-making authority is more limited and often requires approval from higher-level executives.
Strategic vs. Operational Focus
- Executive: Executives are primarily focused on the strategic aspects of the business, such as growth opportunities, market positioning, and competitive advantage. They work on aligning the organization’s vision, mission, and values with its strategic goals.
- Mid-Level Manager: Mid-level managers focus more on operational efficiency and effectiveness. They translate strategic goals into actionable plans, ensuring that their teams meet performance targets and deliverables.
Organizational Influence
- Executive: Executives have a broad influence over the entire organization, shaping its culture, values, and overall direction. Their decisions and leadership style can have a significant impact on the company’s success and reputation.
- Mid-Level Manager: Mid-level managers have a more localized influence, impacting their specific department or team. They play a crucial role in motivating and guiding their team members, fostering a productive work environment.
Communication and Reporting
- Executive: Executives often communicate with stakeholders outside the organization, such as board members, investors, and industry leaders. They are also responsible for communicating the organization’s vision and strategy to all employees.
- Mid-Level Manager: Mid-level managers primarily communicate with their direct reports and other managers. They are responsible for ensuring that their team understands and executes the strategies and policies set by the executives.
Experience and Skill Set
- Executive: Executives typically have extensive experience in leadership roles and possess a broad skill set, including strategic thinking, financial acumen, and strong leadership abilities.
- Mid-Level Manager: Mid-level managers often have specialized knowledge and skills related to their specific area of responsibility. They need strong managerial skills, such as team leadership, project management, and performance evaluation.
The Perks and Challenges of Being an Executive
Being an executive comes with many perks. Aside from higher compensation, you get the satisfaction of seeing your decisions and actions make a material impact on the company’s success. However, the role also comes with risks, as you have to take accountability when things go south. Many executives don’t do that and are masters of shifting blame on others, but these people get no respect from me, and you shouldn’t try to become one of them either.
What It Takes to Become an Executive
To become an executive, you need to:
1. Shift Your Mindset:
- Embrace a strategic perspective.
- Think long-term and company-wide.
2. Develop Critical Skills:
- Enhance your strategic thinking and financial acumen.
- Strengthen your leadership and decision-making abilities.
3. Enlist Mentors:
- Learn from experienced executives.
- Seek guidance and feedback.
4. Work with Coaches:
- Understand and embrace your strengths.
- Build actionable plans to drive desired outcomes.
- Ensure sustainable progress toward your goals.
Conclusion
You have what it takes not only to be an executive but to be a great one!
By shifting your mindset, developing critical skills, enlisting mentors, working with coaches, and believing in yourself, you can achieve your goal of becoming a senior leader in your organization.
Embrace the journey, and remember that the impact you make as an executive can shape the future of your company.
