Kinds of CEOs

A colleague of mine forwarded a link to this blog entry from Ben Horowitz:

http://bhorowitz.com/2011/04/15/peacetime-ceowartime-ceo/

In it, he describes the differences between "wartime CEOs" and "peacetime CEOs" but while I think these distinctions do well describe the difference between types of people, I'm not sure that the situation makes a difference.  He notes himself as being a "wartime CEO" and I have to admit I often find myself taking those positions, but I think among his descriptives, he treats a wartime traits as admirable when they often shouldn't.

For example, "Peacetime CEO sets big, hairy audacious goals. Wartime CEO is too busy fighting the enemy to read management books written by consultants who have never managed a fruit stand."  I think a CEO in a "wartime" situation (behind the 8-ball) that doesn't set a big, hairy, audacious goal is probably in trouble.  I'd argue that figuring out how to become a dominant market force when you're up against competition that is winning the war as the ultimate BHAG.  If you're too busy dealing with the tactical engagment, your strategy will fail, if you even have one.  How can you "pick your battles" if you don't have a sense of where the strategy is?


Then, "Peacetime CEO has rules like “we’re going to exit all businesses where we’re not number 1 or 2.”   Really?  I can't imagine a successful CEO who has "rules" like that.  They may be strategic decisions, and it may happen, but if a CEO has a rule to exit all businesses they're not winning, they will quickly find themselves not winning anything, regardless of how far ahead they are.  Similarly, if you're a wartime CEO and you're not willing to consider dropping a failing effort in order to focus on your goal, you're likely wasting resources and spreading yourself too thin.


I don't think there are peacetime CEOs and wartime CEOs.  I think there are CEOs who are never satisified, and there are CEOs who can find themselves content.  I think there are CEOs who have different strategies for success, and depending on the circumstances, they may or may not work.


In the immortal words of Edison, (paraphrased), "There are no rules here, we're trying to accomplish something!"