What it is to be a CEO today is markedly different to what it once was. The plethora of challenges faced – from a more turbulent operating environment and shifting employee preferences, to heightened public scrutiny and (probably rightly) more robust corporate governance – have made the task of leadership more complex than ever.
A recent column in the FT examines some of these present realities of being a chief executive at a large organisation. One thought in particular struck me, which is that the “ability to choreograph consensus is often the most important skill a CEO can have”.
Being able to bring people together has always been a critical skill in leadership, and it’s something that rings true in the conversations I’m having with CEOs. But today, it’s about more than just consensus. It’s about aligning all stakeholders – whether that’s those in the boardroom, frontline through to senior staff, or our prized customers – around a shared vision and purpose.
Bringing stakeholders on board through service leadership
For any business, leading with service is critical in aligning these stakeholder groups. For company boards, this means recognising the impact service has on the bottom line and understanding the different elements that, in combination, create a positive service experience. It is the principle that ensures key decisions are made with service quality, the customer and better outcomes in mind.
Service leadership is also about acting with integrity, communicating openly, and embedding a service-focused culture that permeates the whole business. This in turn helps engage, empower and motivate our people to deliver excellent service for customers.
This is how we build trust and loyalty among customers, and drive the kind of repeat business vital for sustainable success.
Service as a guiding principle
As the FT article I mentioned earlier suggests, CEOs who step into the role following a comprehensive handover, mentoring and early engagement with stakeholders are better equipped to succeed in the long term.
Those that don’t are more likely to encounter friction with the board in the struggle to satisfy the often competing priorities of chairs, non-exec directors and shareholders.
So, I would urge incoming and aspiring CEOs to also view service leadership as a guiding principle – one that unites stakeholders and focuses the board. After all, we know that focusing on service and investing in it is the best approach for bolstering the bottom line in the long term.
Our research shows that poor service is costing UK businesses £7.3bn per month in employee time spent resolving issues. In addition, companies that consistently score higher than their sector average for customer satisfaction enjoy stronger revenue growth (7 percentage points more) and higher levels of EBITDA (an average of 10 percentage points higher) than those below it.
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