In the current economic climate there is an increasing tendency to turn to internal candidates in the search for a new CEO. They will have already have proved themselves in a senior executive role, will have a strong understanding of the complexities of the business, and be able to provide continuity in maintaining the company’s culture, often making it more cost-effective and less disruptive than appointing an external candidate.
In recent months we have seen this trend with a number of high profile internal appointments to the CEO position, including Burberry’s Christopher Bailey, Sainsbury’s Mike Coupe and Dixons Carphone Group’s Andrew Harrison.
It seems of the top internal positions, COO offers the best starting point for becoming CEO. According to a recent Forbes report, some three quarters of today’s Fortune 500 CEOs were appointed internally, of which more than half were promoted from COO. This is supported by research from EY which reports that 40% of COOs see themselves in a CEO or MD role within five years while 53% of their C-Suite peers believe their current COO is likely to lead the company in that timeframe.
Michael Cairns, former COO and now CEO of Publishing Technology plc, the leading provider of world-class software and services to the global publishing industry, shares his approach to preparing for and succeeding at the CEO role.
1. COO / CEO relationship
Your relationship with the CEO is the most important one you will develop within the company and you will need to get this right. If you cannot win the CEO’s trust and endorsement, the route to the top will be short. This relationship can be a hugely powerful when functioning at its optimum. By working closely together you can learn from the CEO from the outset which will allow you to identify where your skills need to be developed and work at improving these under his or her leadership. By setting out different roles and responsibilities early on you will quickly recognize how your skill set complements those of the CEO.
2. Thinking strategically
As a COO you are focused on the day to day issues of the business. Whenever possible you should find the opportunity to demonstrate your ability to think strategically. By supporting the CEO and advising on whether a strategy can be implemented at the operational level, you are helping them to define the approach that underpins their vision. More importantly, you are demonstrating your understanding of and ability to contribute to these strategic discussions, which, according to recent reports [actually by EY], some 70% of C-Suite executives consider to be an essential skill for the top role.
By thinking in this strategic way you will be more accustomed to establishing the long-term agenda and key target milestones of the business, helping you to instil the confidence of the Board once you are appointed.
3. Communicating externally
The operations role is traditionally viewed as internal, rather than client or stakeholder facing, however the increasingly competitive and tough economic business environment means that communicating operational excellence is becoming a requirement for many companies. The result is that today’s COOs need establish themselves as more than just an operations specialist, they also need to take on visible leadership roles and effectively manage client and key stakeholder relationships to perform their job effectively.
By developing these skills you will be prepared for the challenge of becoming the public face of the company when you will be required to communicate with and manage a far wider group of stakeholders, including investors. A recent report by the School for CEOs, which provides the practical tools for senior executives in the move to the CEO position, cited exposure to investors and external management and communication as the two aspects of the CEO role that required most preparation.
4. Avoiding micromanagement
A good COO will constantly review the efficiency of processes they have implemented into a business, refining as necessary to ensure optimum performance. As a result, on making the leap to CEO, you may find it difficult to take a step back and extract yourself from the minutiae of the day to day operations.
By surrounding yourself with a team that you can promote as you move up through the business, you will already be familiar with their working practises and you will have a thriving working relationship in the same way that you had with your superiors.
5. Gaining exposure to the boardroom
As a COO you may not be a board member or have direct exposure to the C-Suite and you will be unaccustomed to investing time and effort into building relationships that do not directly impact the day to day running of the business.
To compensate for this, where possible, it is important to invest in building relationships with the board as your dealings with them will be fundamental to your success as a CEO and you will quickly gain a good understanding of how they perceive you and your role or vision for the company, help you to gain their confidence.
At a public company, governance is also an area that you will have had little exposure to. At the CEO level, you may find yourself overwhelmed by regulation and paperwork and you will need to quickly free yourself from this. However, the real challenge will be around managing the softer, often complex relationships between the committee and board members.
6. Managing time
Another key skill you will need to develop will be time management. Harvard Business School research shows that CEOs spend up to 60% of their working life in meetings, with a further 25% on phone or conference call and at public events. As a COO working at the heart of the business, you may find the transition to a role where your routine lacks the structure and activity you are used to difficult to manage.
A School for CEOs, which trains senior executives to deal with the transition of stepping up to the top job, cites that 12% of newly appointed CEOs view self-management as the element of the job requiring most preparation. The CEO role also lacks the guidance and support that as a COO you may be used to and you will require discipline, strength of character to the ability to stick to your priorities.
It is a much considered fact In order to successfully make the move to CEO you will need to master the art of networking outside of the business. As COO you will have focused on managing internal relationships and politics to ensure the smooth daily running of the company but in the CEO role you will be required considerably increase your public profile.
8. Business qualifications
Recent reports suggest that there is a shift away from COOs with a more technical background to commercially aware operations executives with business degrees or MBAs, a qualification increasingly held by younger executives in their 30s and 40s. These qualifications provide a solid commercial background and help prospective CEOs become a well-rounded business person and prepare them for the more strategic requirements of the role, particularly those moving from an operations background.
MBAs are, however, often considered to be too grounded in academia and it can be argued that they don’t prepare future CEOs for the challenges of the boardroom and the management of the often difficult relationships at this level.
Although there are difficulties that may be encountered from internal appointments, research shows that CEOs hired from within deliver better business results and are likely to hold their position for a longer period of time.
Whichever route your business takes, the key issue is around succession management and it is more important than ever, with the increasing complexities businesses face, that your business has a process to identify and train motivated and qualified individuals to ensure the continuing success of the company.
Research exposes the £68.8 billion opportunity for UK retailers
- Modelling shows increasing the proportion of online sales by 5 percentage points would have significantly boosted retailers’ revenues during the first lockdown
- 72% of Brits want retailers who started an online service during the pandemic to continue operating it full time
New data released today by global payments platform Adyen, outlines the economic gains that could be accessed by getting more UK retailers online.
Economic modelling conducted by Cebr for Adyen indicates that if the retail sector increased the proportion of turnover stemming from online channels by 5 percentage points, £68.8 billion would have been added to the economy during the first lockdown.
While retail turnover stemming from online sales has grown significantly during 2020 – from 19% to 28%, there is still considerable room for growth.
Myles Dawson, UK Managing Director of Adyen comments: “The UK retail sector is facing an incredibly tough quarter, so creating the link between physical stores and online channels is more important than ever. With the festive period approaching and many shoppers unable, or uncomfortable leaving their homes, establishing and maintaining a positive online experience is a billion-pound opportunity for retailers.”
The research of 2,000 UK consumers found that 31% are less likely to shop in physical stores now because of positive experiences shopping online during the pandemic. Furthermore, 72% of these consumers want retailers who started an online service during the pandemic to continue operating it in the long term.
However, making the process of shopping online as frictionless as possible will be key to unlocking the opportunity presented by online channels. 70% of Brits say that when shopping online, the ease of use is as important as the quality of the product, and 72% won’t shop with a retailer whose website or app is difficult to navigate.
Myles Dawson concludes: “Many retailers did amazing things during the pandemic in terms of adapting and creating new experiences – it’s a testimony to their agility that 57% of Brits said their expectations of the retail sector has improved during the pandemic. The challenge now is to consistently meet these expectations going forward. With local lockdowns in place, online channels will be key to serving many consumers in the short term. However, retailers need to see the shift to unified commerce as a long-term trend. The sooner they can demonstrate agility and jump on board, the longer they’ll reap the rewards.”
2 Research conducted by Opinium Research LLP
Want to serve your customers better? An effective online strategy is what financial institutions need
By Anna Willems, Marketing Director, Mention
A strong online presence matters.
Having a strong online presence, that involves social media is now a crucial part of all business strategies. Whether they are retail brands, sports teams, libraries or even restaurants, most companies are investing more and more in developing their digital brand image and online presence – financial institutions are no exception.
When it comes to market trends and innovation, financial institutions are first on the line. After all, we — people and companies — trust them to manage our money to the best of their abilities. And even more so than any other market, we demand secure, trustworthy, fast and user-friendly services.
Reaching such high expectations is not a given. To this point, banks and other financial institutions have no other choice but to have a perfect understanding of their market, their audience, and their needs. What they need to get there is a fail-proof online strategy.
Gaining a deep understanding of your market
One of the best things about using social media to learn about your audience is that people give unsolicited opinions. They speak their mind and share their thoughts candidly.
This is the key to help any business to learn about themselves. They get to analyze their audience’s challenges and aspirations without having to ask them directly or serve them time-consuming surveys and polls.
UK-based Asto, a company that is part of the Santander Group, is committed to helping small businesses have access to financial and non-financial tools. Asto was looking for something that could help them discover what their target audience was talking about and find opportunities to add to the conversation. Mention enabled Asto to keep on top of reviews and customer comments, which has helped us provide a better service for our customers.
Which platform suits your offering the best?
There’s no point choosing to create campaigns on TikTok if your customers don’t use it – you need to think about who they are and work back from there.
You do this by automating the process using a social listening tool. A social listening tool will help you to view your market as a whole and identify where the key conversations are happening — and, therefore, where you should be. What’s more, you will never miss any relevant mention of your institutions, products, services, or competitors.
Handling a crisis
Financial institutions need to watch carefully for negative press – social media is the first place people will go to if they feel they’re not getting the service they need. In theory, rogue employees or unhappy clients can post anything they like online to try and hurt your brand. And if their messages gain traction, you’ve gone from one person saying bad things, to thousands.
That’s why listening needs to be part of any crisis management plan. Now, sometimes, there are crises you cannot prevent. And those usually hit pretty hard.
Power of influencers
For an influencer marketing campaign to work for your financial institution, partnering with nano content creators may well be the best way to go. They’re ability to play a part in how they shape your brand story can make a huge difference when it comes to engagement and reason to believe in your service.
Many financial institutions are already leveraging influencer marketing. It’s an efficient strategy to: Build trust and gain credibility, reach out to new audiences and share engaging stories.
The online review conundrum
94% of consumers check online reviews before they decide to buy something or subscribe to a service. They need what we call social proof. It says that the more people say they use your service, the more it will look like a good service. In short, you need to show how happy people are using your service. But not all online reviews are positive.
Having said that, we find that financial institutions shouldn’t ignore negative reviews. Instead, embrace them as an opportunity to rebuild trust in your brand. Less delicately put, take the bull by the horns and turn them to your advantage. Always respond to relevant complaints (and as fast as possible). Take responsibility for what happened. Be helpful.
And ignore trolls.
Learn from the competition
Over the last two decades, a marketer’s daily life has greatly evolved. Most importantly, we now can measure everything we do, including the consequences of our actions on our business. Having said that, you can’t evaluate how well you’re doing without comparing against
Truth is that 77% of businesses rely on listening to keep an eye on their competitors. What this means is that 4 in 5 of your direct competitors are likely watching each and every single step you take. And you should do the same.
Setting the trend
From staying up to date with the latest industry trends and innovations, to keeping an eye on the competitors’ newest services, to being the first to know of potential brand crises – tracking relevant online conversations lets marketing and communication professionals working for financial institutions to stay one step ahead in an industry that is leading change and innovation.
Why the Boom is Long Overdue (and Here to Stay)
By Roger James Hamilton, CEO, Genius Group
Virtually every aspect of our lives has been taken over by tech, so why is it that our schools, that are educating the business leaders of tomorrow, are still operating in much the same format as they did 100 years ago?
The global pandemic put digital learning in the spotlight and an Edtech boom has ensued, with companies like Coursera, Quizlet and Udemy seeing unicorn style growth. And the market is not slowing down. The education technology (Edtech) boom will continue.
Resilience and Growth
Unicorns are defined by rapid growth. Traditionally, these companies are not overly concerned with early profitability, long-term sustainability or value creation as much as with putting their competitors out of business.
But something different is going on in the Edtech market. The unicorn has lost its appeal. When learning platform Quizlet achieved unicorn status this year, CEO Matthew Glotzbach was keen to play down the moniker reserved for start-ups valued at $1 billion or more, preferring to liken his company to a camel.
Unlike unicorns, camels are real, hardworking beasts. Respected for their adaptability to various climates, resilience, and abilities to survive for long periods without sustenance. These are all traits much better suited to weather the economic storms created by the pandemic.
Despite their considerable abilities to adapt to challenging conditions, the climate is looking particularly sunny for camels within the Edtech market. In fact, all creatures great and small have the potential to capitalise on unprecedented growth in this sector.
The nature of education makes it a traditionally slow-moving area, which renders it unattractive to some investors. Yet, the coronavirus outbreak and subsequent surge in remote learning this year triggered a flurry of uptake in e-learning platforms.
We’ve seen the adoption rate for new technologies be accelerated by events like this before. For example, the SARS crisis of 2003 contributed to the boom in China’s ecommerce industry, as quarantines lead consumers to shop online. Of course, this market trend did not slow down once quarantine restrictions were lifted. Ever since, global online sales have risen exponentially. The same is set to happen in the Edtech market.
Providing a Solution
As with ecommerce in 2003, the demand for Edtech in 2020 was already there. It has been there for years. For the past decade at least, there has been a notable need in recruitment for qualified talent in data science, coding and digital. Edtech can bridge the skills gap, not only within formal education but also for adult learners upskilling and reskilling for today’s digital world.
Similarly, the financial crash of 2008 had the effect of fast-tracking the rise of the gig economy, requiring millions more to learn entrepreneurial skills. The idea of a job for life is now a distant memory. The Edtech sector can deliver the tools to equip students of all ages with the skills necessary for creating their own opportunities, as well as exchanging knowledge and collaborating in a digital economy.
Rising unemployment, as well as competition for jobs and government furlough schemes has seen interest in digital learning courses for adults also soar during the past few months. Figures show that the corporate e-learning market is set to increase by as much as $3.09 billion between 2020 and 2024.
The Edtech boom kickstarted by the pandemic is just the beginning in a paradigm shift in how we view education and work.
Over the next 10 years, with the rise of artificial intelligence, automated technology, and augmented reality, traditional, manual and customer service based roles will diminish and there will be less need for a large workforce when computers and machines can do the role equally well.
The need for a truly 21st century education system that reflects the needs of the job market is long overdue. Edtech companies are offering solutions to many of these issues that have troubled the economy for the past decade or more.
A Different Animal
Enter the zebra (back to our animal analogies). These types of Edtech businesses will be the ones to watch within the sector. With zebra companies, there’s a sense of community and collaboration, rather than competition. They understand that there’s room for more than one superstar in a market. Zebras are herd animals after all. The zebra believes that competition is healthy for everyone involved—something to watch and use for motivation and growth. It closely observes consumer trends and continually strives to solve new and developing problems for those consumers.
For zebra companies, profit margin is vital because it is necessary for steady growth and sustainability. Revenues hover between $5M and $50M, it serves customers within a specific niche, requires annual growth capital of $100K to $1M, and generally has more than four streams of revenue.
Zebras are both black with white stripes and white with black stripes – they have a fluidity in their approach and are camouflaged at the same time. This creates a double bottom line: Zebras want to conduct real business, by solving a pressing problem in a sustainable way, whilst reacting to contemporary challenges. This too could be said of the Edtech industry as a whole.
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