Who would like to be CEO?
The pressure on global business leaders has always been high. But the challenges feel particularly acute right now.
Top leaders oversee companies that employ hundreds of thousands of workers worldwide. They can no longer rely on old-fashioned hierarchical management techniques that are less and less effective. They need to see technology as both a huge threat and a huge opportunity. And many are pressured by employees, investors and opinion formers to speak out and engage on social issues, even at a high cost.
“It’s a terrible job, frankly — I wouldn’t want it,” Nicholas Bloom, a Stanford University professor who studies CEOs, once said. “Being CEO of a large company is a hundred-hour-a-week job. It consumes your life. It eats up your weekend. It’s extremely stressful. Of course there are huge benefits, but it is also all-encompassing.”
Of course, the bosses of multinationals are well paid. They are ambitious and often seek the power and excitement that comes with being in power; no one becomes CEO by accident. And many of those who have faced the stress of a financial crisis, an activist attack, or a hostile takeover say they would again in spite of everything.
But what does modern management look like and how do business leaders deal with some of their thorniest challenges? This week, DealBook delved into some of the toughest dilemmas companies face and how CEOs deal with them:
How should companies interact with governments in a time of rising populism and tense geopolitics? The story of the post-Cold War world was economic integration, international supply chains and deepening trade relations. China’s economic development has supported global growth for decades and has been fundamental to helping the west recover from the 2008 financial crisis.
Now, tensions between Washington and Beijing are hurting businesses. The pressure to disconnect is increasing and twofold. But it has come after decades of many companies trying to make the most of China as a manufacturing center and huge market. Last year, bilateral trade hit a record $690 billion – a sign that not everyone is ready to flee the world’s second largest economy to please the political masters in the largest.
Closer to home, executives are closely scrutinized for the positions and commercial decisions they make on current political issues ranging from access to abortion to transgender rights. In a country as divided and sprawling as the US, this means that a surefire money spinner in one market or state can be a political and reputational nightmare in another.
All of this suggests it’s never been more important to defend cases for policymakers, but CEOs who speak out publicly should expect to be beaten up, writes Matthew Gwyther.
Is there a way to navigate the climate crisis without becoming a political target? The battle over how companies treat the environment has turned into a political culture war. Shareholders, policy makers and commercial interests are driving companies to put sustainability at the heart of their activities. But some powerful officials, such as the Republican governors in Florida and Texas, bash companies that adopt such policies, winning political points. Some companies have found that saying less is best, reports Michael Skapinker.
What is the correct way to integrate artificial intelligence? ChatGPT, the AI-powered chatbot backed by Microsoft, has reshaped the conversation. Google declared it a “Code Red” for its long-dominant search business, accelerating a major shift in its AI business.
More broadly, the transformative potential of rapidly advancing technology is forcing CEOs in every industry to weigh the opportunities it presents against the disruption it will inevitably cause. Kevin Delaney writes about how business leaders are trying to introduce AI as they prepare their employees for what’s to come.
What does the struggle to get workers back to the office reveal about the end of top-down management? The parameters of the post-pandemic world of work remain to be negotiated. Some companies are forcing employees back to the office, with mixed results. What is certain is the shift to a new, fragmented way of working is here to stay because many workers are asking for it. Executives who used to be able to dictate the way we work are finding that things are a bit more complicated. Finding the right tone and relationship with employees is more important than ever, reports Stefan Stern.
Business leaders have always had to make tough decisions. But as each of these dilemmas shows, the potential consequences of making a wrong choice can be swift and brutal. And there are no fixed or obvious solutions, no matter how big the salary.
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