DESIGN, ALIGN, HONE: THE CEO’S REAL JOB

Abstract The authors, longtime leaders at Deloitte, write that management systems are overlooked and powerful tools that “include everything managers use to influence how work gets done: performance reviews, HR/Human Resources processes, budgeting structures, meeting rhythms, incentive systems, and informal norms.” The CEO is most responsible for these systems: “No one else has the same combination of visibility, authority, and accountability.” While they are writing mainly in a business context, these principles have broader applicability. They discuss binary versus continuous metrics; qualitative versus quantitative metrics; and carrots versus sticks. Regarding reliable and accurate feedback loops, they write that “our brains are wired to prioritize social safety and belonging, and sharing information that could be perceived as threatening to the group or its leaders can trigger anxiety and fear.” They have found success with “using methods that blend anonymity with in‐person discussions, fostering a culture where major issues are openly addressed and leaders can demonstrate how they handle difficult conversations.” Regarding management systems, “we now find that it’s necessary to understand all the management systems in existence to ensure that they don’t unintentionally conflict with the key ones that are necessary to measure and manage the direction of the company.”