Practical ceo

Purpose of the class
What is involved in being a CEO
What constituents?
What are the areas you need to focus on?
Who wants what from whom?
What skills
A day in the life of a ceo
What can go wrong
Summary

Role of the Ceo
Leader not manager
Provide strategic direction
The primary, broadly defined risk manager
Spokesperson for the company
Arbiter of the senior management team
Responsible for approving policies to create a controlled environment

Who are the constituents?
Shareholders through the supervisory board
Executive directors
Staff
Clients
Suppliers
The ‘public’
Regulators
Tax and other government
Organisational departments, direct and matrix

Understand the criteria that drive the shareholders’ definition of success
What return on capital
What market share and in what product
What public image, message
Review the strategy in light of market
Tactics and timing, priorities
Own the numbers, understand the dynamics of the business
Build the right team
Analyse existing resources
Determine who to keep, replace, hire
The first day’s checklist

The first day’s checklist continued
Inventory full spectrum risks and determine hold, avoid, increase
Differentiate between idiosyncratic and systemic
Understand timing
Review policies, practises, procedures
Are they robust, appropriate, scaleable?
Not just corporate but across the board, eg marketing, new product introduction
Technology
Create a 90 day plan
Find early successes
Don’t let the urgent crowd the important

First day checklist continued……
Conduct line reviews of core businesses
Portfolio review, what risks and opportunities, any close in dangers?
Recent trading performance, what might change?
Ensure mark to market in treasury and portfolio
How to position to maximise upside?
Check in with key constituents
Regulators and administration
Customers
Line and matrix managers
Staff
Competitors
Suppliers

What do they want from me….
Understanding of the environment (now and in future)
Economics
Politics
Industry and key developments
Competition
Culture
Deep knowledge of the dynamics of the business
By business line
Dynamics of the cost structure
Scenario analysis
Ownership of broadly defined risk management
Brand adherenc
Controlled environment

What do I want from them….
Clear key performance indicators, for me, the business
Capital, funding, counterparty limits
Clear and understandable policies and practises
Effective reporting systems that minimise the pain
Appropriate products and technology
Brand and public relations support
Pool of talented, motivated staff with specific expertise

Some useful skills
Communication external and internal, written and verbal
Ability to judge existing and proposed management
Coaching, interaction with staff
How to run a meeting
Time management
Marketing capabilities
Strong credit skills

How to judge management
Often what is unsaid as important as what is
Triangulate questions, asking from different angles
Understand the cv, what skills were required
Personal references from known sources are the best
Is there a back up in place
What people skills, use 360 degree plus new manager assimilation

Communication skills
Start with the end in mind
Structure the communication so that it is logical and simple to follow
Say what you are going to say, say it and then summarise it
Know your audience
Time management

Coaching, interaction with staff
Leaders lead, managers manage, don’t get confused!
Core communication skills
In staff meetings
In written memos including internet
In one on one
In committees
Clear KPI’s reviewed regularly
Transparent, fairly managed remuneration plans
Coaching skills
The elevator chat

How to run a meeting
Create a clear agenda outlining purpose and decisions to be made
Circulate in sufficient detail with accompanying documents sufficiently ahead of time for participants to be able to absorb the material
Create the’bolshoi rule’, everyone on time, no one gets in after the meeting starts
Listen first and only comment after others
Ensure time keeping, don’t let the meeting overrun
Rapidly produce and circulate an agrred list of action plans, due dates and responsible people
Maintain momentum…..

Time management

Marketing
Clear set of goals for brand, product sales
Determine what channels to be used
Determine what the target audience is
Ensure that there is a clear agency brief
Use appropriate focus groups and surveys where necessary
Explore non standard channels
Create a baseline to enable tracking impact of differing programs

Credit skills
No substitute for experience
Conduct a portfolio review of 80/20 exposures
Meet management and/or shareholders of all key credits
Understand the purpose and structure of facilities
Good credit initiation means getting behind the numbers, understanding strategy and competitive environment
The second way out is only as good as the documentation
Credit is not a one off event, it requires appropriate monitoring, and in person

A day in the life of a CEO
0800 check news, market update
0830 run through schedule of day with assistant, reorder where necessary priorities
0900 weekly business review with executive management team (or individually with line managers)
1000 briefing client management team for key messages
1015 client meeting
1130 initiative review with project team
1230 lunch with competitor, key industry player, client
1430 attend bankers’ association meeting, lobby

A day in the life …continued
1530 walk the corridors
1600 credit committee (or alco, audit etc)
1730 conference call with head office to report issues
1830 interview with mass media
1930 attend reception
2030 client dinner

Things that can go wrong….
People
Initiatives from center
IT problems, fires
External, internal fraud
PR disaster
The outside world
Competitors can strengthen
Customers go bankrupt
Banks cancel lines
Laws change