CEOs conflict with C-suite on their views of growth stimulants, barriers

Growth is one of the most sought after targets but with it comes new pressures, new workloads, new markets and new objectives. A recent survey conducted by Epicor Software commissioned Morar Consulting revealed that there is a large gulf between the way Chief Executive Officers (CEOs) across the globe experience growth compared to their C-suite colleagues like Chief Financial Officers (CFOs), Chief Information Officers (CIOs), Chief Operating Officers (COOs) , Chief Technology Officers (CTOs) etc. The research concluded that the CEO consistently takes a conflicting view of growth, compared to the rest of the C-suite, who focus on the rewards growth brings.

CEOs are more burdened by growth than the rest of the C-suite:

Considering that a CEO is usually stereotyped to be a motivational and growth-hungry business leader, the survey found out that out that an unexpected 53% of 1,800 CEOs did not think that growth is rewarding. Furthermore, 48% of the CEOs admitted that growth has a challenging impact on business, compared to 37% of CIOs. This difference in attitude might suggest that CEOs are more realistic about growth than their C-suite colleagues. For example, 57% of the CEOs stressed the importance of hard work to achieve growth while an average of 59% of COOs, CIOs and CFOs believed that growth is a result of good planning. 

Rob Morris Managing Direcror and General Manager, YSC

CEOs most frequently have to answer to external stakeholders- such as shareholders, investors and customers-about what's going on. They have to explain numbers and details without having direct control over tactics. The rest of the C-suite however is more acutely tuned into the details of what’s happening within their department. Many are in a position of greater control but less direct accountability to external stakeholders. This changes their outlook.

CEOs may be more concerned about losing management control and intimacy with customers which is why they prioritise external business relations. While the C-suite tend to have more functional roles and hence a more internal outlook, the CEO has the burden of spanning the boundary between the business and its stakeholders. The report stated that 42% of CEOs worry that growth might lead to a loss of intimacy with customers in comparison to 38% of CIOs, COOs and CFOs. 40% of the CEOs also consider a potential loss of management control to be an effect of growth, compared to 34% of CIOs, COOs and CFOs. 

Conflict at the heart of the C-Suite:

Apart from disagreements over the rewards of business growth, there are other rifts too in the boardroom. The CEO and C-suite disagree over the key stimulants to growth. While 40% of CFOs and CIOs consider a skilled workforce to be the main stimulant to growth, only a third of CEOs agree. 36% of CEOs place more emphasis on technology leadership which includes having the latest systems in place to automate processes and make business operations and decision-making more efficient. There is also a different outlook when it comes to the perception of barriers to growth. The report concluded that the C-suite consider economic uncertainty to be the main barrier to growth whereas CEOs believe regulations and bureaucracy hold their business back. 

Turning conflict into healthy conversations:

The report indicates that a CEO might experience growth differently to colleagues while also juggling the expectations of different stakeholders. The report manifests the idea that its lonely at the top as they might feel the burden of growth more than others. It suggests that in order for businesses to overcome the potential risk due to conflicting views, members should align their goals, outlook and share the information they have. The first key to this is that businesses must acknowledge that a conflict exists. This can be used to encourage debate and turn the boardroom into a healthy forum of discussion. 

CEOs have already spotted the value of data to make growth less painful:

The report stated that CEOs use data to make business growth less painful. They are turning to technology to ease the pains of growth and as the business grows, they choose to remain connected to the business through data insights. 40% of CEOs agreed that access to information is of significant importance to them compared to 34% of CFOs, COOs and CIOs on average. 77% of CEOs agreed that effective and integrated IT infrastructure is essential for business performance and one-in-ten blamed a lack of technology if a business hasn’t grown.

Alignment can make conflict healthy:

Data plays a valuable role in aligning individuals in the C-suite and acts as a leveller in the boardroom. This is because when the C-suite too have access to real-time data, business decision making can become more informed. The report suggests that when contrasting ideas stem from same information and insight, innovation and new ideas can be stimulated. Growth strategies can be more clearly designed and conflicting opinions can be backed up by data to form a healthy and effective debate. The report stated that organisations are turning to next-generation systems such as intelligent ERP technologies to make C-suite misalignment a thing of the past.