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Strategic Partners

13 November 2007

Survey of CEOs reveals need for leaders rather than bosses

Research scrutinizes CEO characteristics in 1997 and 2007.

The Orange Leadership Snapshot survey looks at the key characteristics of CEOs in the top 50 FTSE Companies in 1997 and 2007. Commissioned by telecoms organization, Orange, the survey, conducted in September 2007, analyzed the DNA of CEOs, to see which characteristics are consistent with success and what has changed over the last 10 years.
Results breakdown:
• In 2007 there are more than twice as many CEOs with US experience than 1997.
• 90% of CEOs in 2007 went to university compared to 70% in 1997.
• More CEOs have MBAs in 2007 (33%) than in 1997 (21%).
• CEOs in 2007 have reached the top sooner than in 1997.
• In 1997 over a third (35%) of CEOs began their career at the same company. This is just over one in 10 (12%) in 2007.
• 37% of CEOs in 1997 held no previous board or director level position prior to appointment to CEO. In 2007 this figure is 25%.
• CEOs in 2007 have smaller families than in 1997.
• Nearly half of 2007 CEOs have 2 children.
• In 1997 CEOs had more children (35% had three, 29% had four or more).
• Over three quarters (77%) of CEOs in 1997 were British.
• In 2007 there is more of an international mix with only two thirds of British origin (66%).
• Football has taken over from golf as the top hobby for CEOs in 2007.
• Retail, oil and gas are sectors with longest serving UK CEOs.

Technology a key change factor
Neil Laidler, director of sales and enterprise Orange Business Services said: “It's clear that there are many more facets to being a successful leader today. Technology is a key driver of this change. Successful business leaders must embrace the latest tools at their disposal to stay one step ahead in this competitive world.”

Bryn Williams, Head of Technology in the Technology, Media and Communications practice at executive search and selection agency, Hoggett Bowers, said: “A successful CEO in 2007 has to be a true all rounder. While this research shows that average age of CEOs is dropping, the quality of leadership has consistently risen over the last 10 years. Young CEOs must demonstrate that they really understand the dynamic landscape of international business in the 21st Century.”  

A question of quality
As part of the research, interviews with 11 UK headhunters were undertaken to provide a qualitative view on the attributes needed to be a CEO today in the UK’s top companies. The results of the qualitative research reveal that 7 key factors are involved:

1. A leader rather than a boss
   Increasingly the decision-making process for CEOs in business is perceived as being a team effort rather than simply assuming the "boss" role. For the CEO, this means being entrepreneurial in vision but also having the ability to roll up his/her sleeves and get on with the job.  
2. Impact of technology and communications
   The ability to use new technology and communications is a vital component for today’s captains of industry. The majority of headhunters surveyed said that a high level of knowledge of the internet and new technology was a pre-requisite for CEOs in 2007. CEOs of the future will have to be fully online and media conversant.
3. International footprint
   Head-hunters see having international management capabilities as an integral part of a CEO's profile compared to a decade ago. Experience of leading business strategies in emerging markets is also seen as a key asset.  

   Successful business leaders must embrace the latest tools at their disposal to stay one step ahead in this competitive world.

4. Good people skills
   It's clear that a CEO increasingly requires outstanding people skills, both with their internal employees and all external parties with an interest in the company. Good board relations, especially those with the Chairman are paramount. CEOs need good communications with external stakeholders, in particular opinion leaders and investors, as these groups have increasing access to information about the company.
5. Demonstrating performance
   One of the greatest changes CEOs experience today, compared to 10 years ago is that there are more external pressures on them to visibly demonstrate performance. These different pressures are sometimes conflicting and come from sources which the CEO is now accountable to, such as shareholders, the board and investors.    
6. A new management culture
   The more traditional path to CEO level has undoubtedly shifted among many of the top UK companies to one which is more kaleidoscopic: so, within the management culture mobility and hybrid combinations of experience are more valued.  
7. Good causes
   Local communities have risen to the CEO agenda in 2007. More big businesses and CEOs are working within local communities and supporting more good causes in 2007.    

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