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Do you Know Why CEO’s Fail

CEOs are the rein holders of companies. Some of them achieve enormous success while the rest fail to hit the mark. After a thorough analysis, we have been able to gather unfeigned reasons as to why a CEO fails to accomplish the set standards. Examining various CEOs for the past few decades, the reasons that have emerged are found to be endemic in nature. The most important ones can be listed as follows-

Failure to Prioritize
A CEO is not just a manager who focuses only on a single aspect. A CEO's task involves more of focusing on the employees, customers and investors and necessarily in that specific order. This order is formed on a concrete ground of evidence. The process, however, is simple and obvious. If a CEO takes good care of the employees, the employees will take care of the customers. Satisfaction of the customers will improve the financial performance of the company and that, in turn, will keep the investors hailing the company. If the CEO attempts to change this order of focus, the company's reputation and performance is likely to go downhill.

Companies engaged in technology and high end products often focus more on raising complex standards of the process that they fail to see the aftermath. The result is not pleasing and does not improve the financial measures of the company. In the past decade, CEO Steve Jobs of Apple has lessened the complexity of the firm and integrated marketing. From then on, the company laid emphasis on the customer and products alone. This has evidently turned its declivity in the past to a much demanded and respected company in the present.

Legal Malignancy

Companies face fierce competition and are exposed to sudden changes. A CEO must pacify these factors and keep the company safe. However, legal advice becomes a necessary evil. Not all legal advices can prove beneficial. Apparently, CEOs of numerous companies have faced the brunt by considering legal advices and consequently placed the company under the Damocles Sword.

The position of a CEO demands a high responsibility. A CEO cannot interact with everyone as there is less time to spare. Information reaching the CEO can be authentic or manipulative and the CEO cannot judge its nature immediately. As a result, the CEO is at the mercy of the people who provide the information in the first place. Manipulated information can lead to a gradual collapse of the company. A CEO, therefore, has to check the reliability of the information and then proceed with making decisions.

Poor Marketing Skills and Misunderstanding
Building up the image of a company is the keystone to the success of a CEO. The trick is to understand the market trends, and market the products and services in the most optimal way. Weak marketing skills and poor understanding of the operations of the company will lead to the collapse in the sales and consequently the reputation will slide down. Moreover, the CEO can no longer focus on customer retention because the brand value has already decreased.

Failure to step up to the job
An executive will tend to focus on the field he/she previously hailed from. The role of a CEO demands an au fait with the progress on all the operations of the company. Prime focus on just few of the operations and ignorance on the others will not be beneficial. A CEO has to learn all the aspects of the company and gain knowledge of the sectors that he/she cannot understand.

Ineffective Board
Before we point to the inefficiencies of the CEOs, we must remember to trace the problem to the roots. The primary task of the Board of Directors is to ensure that they have the right person designated as CEO. A bad board will lead to a bad CEO. The company's future will be wispy in no time. Incompetent Board of Directors stands for a poor management of affairs.

On a conclusive note, an immovable fact remains that the role and scope of a CEO is vast. A good CEO must prioritize and know the company too well. Good marketing skills work like an enchantment for the company. The Board must ensure that their job is well done. Failure on any part of the operation will crumple the company's reputation.The CEO's job is to provide constant assurance to the company's investors and employees. Without a doubt, customers can be retained.

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