8 Biggest Mistakes Most CEOs Make
Running a modern business is a tricky task. Whenever CEOs want to learn, grow, and develop, mistakes can become an advantage. While some mistakes can teach us valuable lessons, others can cost millions. This happens when mistakes are unchanging and repeated, becoming destructive.
Even if you have an excellent team, investments and in-depth knowledge about the market you are working on, you can make several mistakes that are highly common, especially among CEOs running startups. Knowing these mistakes can help you prevent costly issues you can face later while also allowing you to boost the company’s growth in the right direction.
Losing Touch with Employees
When you become a CEO, it is easy to lose touch with employees. And this can become one of your key mistakes since it quickly makes you detach yourself from the reality of your team. While you don’t need to hire people or manage tasks that can be done by other teams, you should still always remember that you need to know how your employees feel, how they work, what they need and so on.
Well-known CEOs running multi-million businesses keep their employees as a key priority. Knowing your employees and covering their needs can help you achieve the highest goals since people want to feel valued and listened to. Always inform them about changes in the company and be in touch with them.
Never Stepping Away from the Business
According to the world’s second richest man, Microsoft co-founder Bill Gates, having rest is essential for any CEO (and everyone in general). That is why he always has books and vacations to keep his mind clear and fresh. Today’s world is hectic, forcing people to somehow maintain a work-life balance. However, it is vital for everyone, and especially CEOs, to have rest and change focus.
You can choose any activity you like, but it is recommended to visit interesting places, museums, and watch something interesting. Reading is always an excellent way to switch focus and relax the mind.
Relying Solely on their Own Knowledge
Success takes more than one mind. Even if you have started your company on your own, you probably have the entire team now. You can also have investors and other business owners alongside you. One of the most common mistakes among modern CEOs is that they rely solely on their knowledge and opinion. Your point of view is essential, but some people in your team or investors may help you achieve better results. They can also help you find new ways to operate and achieve more efficient processes since they may have a fresh view and more knowledge in specific domains.
Manual Finance Management
One of the biggest mistakes CEOs make is that they don’t know about finance management automation. Most organisations today use human resources and paper records to manage their money, especially cash spending. However, there are many tools and services, like credit control software, that help companies automate payments and make it easy to manage cash flows.
Making Chaotic Decisions
In a world where businesses are required to follow the latest trends to stay relevant, most CEOs make mistakes – chaotic decisions. Even though there is no one proper and single decision that can be named as right for everyone, the key rule here is to always have time to consider the decisions.
If you see trends or technologies that you want to use for your business, talk with your colleagues or investors before adding them to the processes or software. The decision-making process should be well-thought-out if you want to reach business heights. This can help you not only save lots of money but also identify your priorities.
Being a Micromanager
The biggest mistake among CEOs is micromanaging. While some people don’t understand why the truth is that it can truly put a damper on your business and team. Even though some may believe that micromanaging each and every task of your team means you are a good leader, doing so brings much more harm to your company. In fact, micromanaging usually leads to a lack of trust between you and your team, increasing employee turnover and leading to burnout. It is also annoying.
A survey shows that 59% of employees reported that they’ve worked for a micromanager. You don’t want to be one of them. Although you may think that micromanagement means staying involved, you better trust employees to handle tasks on their own and be available for any questions. Make clear expectations, and provide regular check-ins to reduce the need for constant micromanagement.
Following Rigid Process
As we mentioned, the modern world is hectic and fast-paced. That is why it is essential for CEOs to stay flexible. However, most companies still follow rigid processes that are usually ineffective and costly. It is a common mistake for midsize organisations that have already established their business on the market yet cannot follow the latest trends.
Although most CEOs believe that the market does not change so much, the truth is that the modern tech market is mostly run by Gen Z startups and the target audience also changes daily. That is why companies should always stay flexible and be ready for changes that are happening. You can hire more young people to the team, especially for the marketing department, to achieve this.
Focusing Solely on Business Growth
Your business doesn’t exist just because you run it. There are many factors that contribute to the company’s success. That is why focusing solely on business growth is a bad strategy. You should also focus on your recruitment, and onboarding process, how your employees feel, how they cooperate with each other and what connections your business has.
