2024 is likely to be the toughest year many CEOs will face, so who can help them weather the coming storm?
Economic experts around the world are forecasting a storm. 2024 is set to see some of the toughest conditions many CEOs and C-Suite managers will have ever had to tackle. Geopolitical uncertainties, climate change and unprecedented levels of government debt are all challenging businesses’ prospects for growth and even threatening their survival. Interest rates look set to continue at their current high levels for some time, while central banks continue to wrestle inflation to target levels. Fuel prices are on the rise, exacerbated by events in Israel, and the cost of resources and global freight are expected to remain challengingly high.
China’s growth crisis is indicative of the problems facing all the world’s major economies and fears of recession are widespread. In this febrile climate, it is small wonder that many CEOs are worried. Many of them will not have experienced a full-blown recession and navigating it successfully will require a very steady hand at the tiller. This is why more and more CEOs and C-Suite executives are turning to 1:1 coaches and mentors who have long enough memories to know that, handled with confidence and agility, these kinds of conditions can present opportunities as well as challenges.
Life is getting tougher at the top, but it doesn’t have to be
Times were already tough for CEOs. A report from the US in 2023 revealed a 50% rise in CEO resignations over the same period in the previous year¹. That is the highest rate since records began in 2002, and that trend is set to escalate as 2024 kicks in.
It seems that the pressure of being a CEO is getting to people and that appears to be getting more marked as the challenges facing CEOs escalate and their businesses must become more agile to survive periods of uncertainty, the emergence of challenger brands and rapid technological change.
The median tenure of a CEO has fallen significantly over the past decade. A study by Equilar reveals a 20% fall in the median tenure rate of CEOs among S&P 500 companies from 6 years in 2013 to just 4.8 years in 2022².
However, there is also a growing body of evidence that CEOs who decide not to go it alone are enjoying longer tenures and more successful careers. By turning to 1:1 coaches and mentors, they have an external sounding board which helps address the loneliness of life at the top without revealing their anxieties to others within the company. Having someone inspiring, who will challenge you to think more creatively in how you address specific challenges and advise on how best to drive changes in corporate culture has proven invaluable to many CEOs.
If you are stepping into big shoes, it helps to have someone who has worn a pair on your side
Stepping up to succeed a long-serving CEO is extremely challenging. Studies reveal that those people that do, typically have shorter tenures, worse performance and are more likely to be forced out of office than the CEOs they replaced.
Nearly half of long serving CEO’s successors fell at least one performance quartile compared to their predecessors. In fact, 69% of successors replacing a long serving CEO whose performance was in the top quartile, find themselves languishing in the bottom two performance quartiles³.
By choosing a coach or mentor who has held high corporate office they can advise you of the pitfalls and help build the confidence you need to hold your nerve and your position. They will prompt the kind of thinking needed to drive change and achieve successful business transformations. Because they will have stepped up themselves, they will be able to steer you to the mindset needed to embrace the challenge and actually enjoy the new role.
At Pinacl, we have a wealth of former CEOs and high-level corporate leaders who are keen to help others make the quantum leaps needed to flourish at CEO and C-suite executive levels. As trained coaches and mentors, they know exactly the right questions to ask to elicit fresh thinking and develop your ability to optimise the way you deploy your talents. And the vast spectrum of coaches within Pinacl’s portfolio means we can matchmake you with the right coach to suit your personality and the unique set of challenges facing you.
If you’d like to find out more about the exclusive talent pool of elite 1:1 coaching talent to which Pinacl can give you access, please get in touch. We’d be delighted to meet you and talk through the exceptional support we can provide.
Sources
¹ https://fortune.com/2023/10/19/ceo-departures-highest-level-on-record-great-resignation/
² https://corpgov.law.harvard.edu/2023/08/04/ceo-tenure-rates-2/
³ https://www.pwc.com/gx/en/news-room/press-releases/2019/ceo-turnover-record-high.html