{"id":1721,"date":"2020-01-07T09:36:24","date_gmt":"2020-01-07T08:36:24","guid":{"rendered":"https:\/\/www.theofficialboard.com\/best-articles\/?p=1721"},"modified":"2020-01-07T09:58:44","modified_gmt":"2020-01-07T08:58:44","slug":"the-ceo-life-cycle","status":"publish","type":"post","link":"https:\/\/www.theofficialboard.com\/best-articles\/2019\/2019-12\/the-ceo-life-cycle\/","title":{"rendered":"The CEO life cycle"},"content":{"rendered":"\n<p style=\"text-align:center\"><a href=\"https:\/\/www.spencerstuart.com\/-\/media\/2019\/hbr-ceo-lifecycle\/hbr_ceo_lifecycle_spencerstuart.pdf\"><em>Viewed in Harvard Business Review<\/em><\/a><\/p>\n\n\n\n<p>When a team of researchers from executive search giant Spencer Stuart set out to assess the world\u2019s best performing CEOs, they assembled a boat load of data on 747 S&amp;P 500 chief executive officers, including <strong>shareholder return<\/strong> for each CEO\u2019s company and an abundant amount of demographic and other intriguing information on them.  <\/p>\n\n\n\n<p>One of the most interesting stories to emerge from their study related to the <strong>longevity<\/strong> of each CEO in their respective position and their<strong> performance<\/strong> over this duration of time.&nbsp;<\/p>\n\n\n\n<p>The data is hugely important for an S&amp;P 500 company\u2019s board of directors, suggesting when the performance of an executive was (positively or negatively) an aberration and even when boards should intervene to replace a CEO.<\/p>\n\n\n\n<p>The Spencer Stuart researchers have broken this down into five general time frames for a CEO\u2019s tenure.  <\/p>\n\n\n\n<p>The first such time frame, which they\u2019ve labeled \u201c<strong>The Honeymoon<\/strong>,\u201d during which they found many CEOs typically achieve above-average results in part because many have given considerable thought to the most immediate and obvious organizational and performance reforms they would implement.  <\/p>\n\n\n\n<p>But this is often followed by what they label \u201c<strong>The Sophomore Slump<\/strong>\u201d when this exuberance dies off and a company\u2019s enduring challenges snowball.&nbsp;  <\/p>\n\n\n\n<p> However, for the successful CEO, this is followed by what they label \u201c<strong>The Recovery<\/strong>,\u201d a multi-year time period during which top-performing CEOs begin to witness progress from the reforms they implemented in their first two years.&nbsp;  <\/p>\n\n\n\n<p>But the ebb and flow of business is such that this is followed by another cyclical cycle, labeled \u201c<strong>The Complacency Trap<\/strong>\u201d during which obvious reforms have been implemented and some success has been achieved and a sense of urgency tends to dissipate.  <\/p>\n\n\n\n<p> The story of a successful CEO typically has a happy ending, labeled \u201c<strong>The<\/strong> <strong>Golden Years<\/strong>\u201d during which systematic management processes have reached a pinnacle of performance and the company begins to benefit disproportionately from a CEOs experience and learning curve.  <\/p>\n\n\n\n<p>\u201cMany of the long-termed CEOs we interviewed were motivated by the idea of building a legacy\u201d during this period, the Spencer Stuart researchers write. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Viewed in Harvard Business Review When a team of researchers from executive search giant Spencer Stuart set out to assess the world\u2019s best performing CEOs, they assembled a boat load of data on 747 S&amp;P 500 chief executive officers, including shareholder return for each CEO\u2019s company and an abundant amount of demographic and other intriguing&#8230; <a class=\"continue-reading-link\" href=\"https:\/\/www.theofficialboard.com\/best-articles\/2019\/2019-12\/the-ceo-life-cycle\/\">More<\/a><\/p>\n<a href=\"https:\/\/www.theofficialboard.com\/best-articles\/2019\/2019-12\/the-ceo-life-cycle\/\">Read more...<\/a>","protected":false},"author":1,"featured_media":1554,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[213],"tags":[151,186,156],"class_list":["post-1721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2019-12","tag-ceo","tag-hbr","tag-spencer-stuart"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The CEO life cycle - The Official Board\u2019s Reads<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.theofficialboard.com\/best-articles\/2019\/2019-12\/the-ceo-life-cycle\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The CEO life cycle - The Official Board\u2019s Reads\" \/>\n<meta property=\"og:description\" content=\"Viewed in Harvard Business Review When a team of researchers from executive search giant Spencer Stuart set out to assess the world\u2019s best performing CEOs, they assembled a boat load of data on 747 S&amp;P 500 chief executive officers, including shareholder return for each CEO\u2019s company and an abundant amount of demographic and other intriguing... 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