From Harvard Business Review · Adi Ignatius · · 2m
New CEOs must diagnose before they act
A new CEO's first move should be deep diagnosis of the organization's problems, not rushing to implement strategy.
In brief
A new CEO's first move should be deep diagnosis of the organization's problems, not rushing to implement strategy. New CEOs should conduct structured diagnostic interviews with executives before making strategic moves, avoiding early misdiagnosis that alienates stakeholders and wastes credibility. Originally reported…
The real test for new CEOs
A new CEO's first big test is not setting strategy or making tough decisions. It's understanding the core problems facing the organization they now lead, says Claudio Fernández-Aráoz, a frequent guest lecturer at Harvard Business…
Why confidence can backfire
The qualities that help a leader win the job, confidence, decisiveness, a track record of results, can make it tempting to act before they fully understand the business.
Change comes in waves
As John Gabarro, a former HBS professor, demonstrated in the classic nineteen eighty-five HBR article When a New Manager Takes Charge, new leaders tend to deliver change in waves.
The diagnostic approach
Instead of a passive listening tour, Fernández-Aráoz advises setting up a series of well-structured, one-on-one executive interviews guided by a core set of diagnostic questions about the business and the road ahead.
Speed without sacrificing quality
You still want to move quickly, as the board and employees both will want to see rapid progress.But this process allows you to move toward action without sacrificing the quality of the diagnostic effort.
Benefits beyond the diagnosis
The consultative approach helps new leaders receive input that can help them make better decisions.They'll earn buy-in from executives who will feel they have a stake in the new plan.
The most important secret
Fernández-Aráoz says this diagnostic process is by far the most important secret for success for a new leader.The most obvious way to screw things up is if you do the opposite.
“Simple as it sounds, this is by far the most important secret for success for a new leader.”
Why leaders skip the diagnosis
Fernández-Aráoz says too often new leaders want to show they have a solid grasp of things and can come up with a grand strategy on their own.
“It's hubris, it's arrogance, and it's totally stupid.”
The bottom line
New CEOs should conduct structured diagnostic interviews with executives before making strategic moves, avoiding early misdiagnosis that alienates stakeholders and wastes credibility.
