"Another great source of ideas is those that come from your employees. Fostering an environment where your employee’s ideas are sought after and appreciated will allow your organization to become more innovative and nimble.”

 
                                      The Innovative Leader 

                                   What can CEOs do in Troubling Times?

CEO’s can clearly make a difference in the fortunes of a company. One compelling example is that of Bill Gates and Steve Jobs. While they are both well known for their vision and tenacity as business leaders, it is well worth looking at what has happened with them at the helm and without them. Whether you like him or not, Bill Gates took Microsoft and built a hugely successful and dominant player in the PC market.

But what has happened since Bill Gates announced his retirement from day to day operations in June of 2006? As of December 2, 2009 Microsoft stock grew by 34.7% from his retirement announcement date. While that may seem to be a fair amount of growth and would make many investors happy, what happened at Apple is truly amazing. During the same period of time from June of 2006 to December 2, 2009 the stock value of Apple has grown an astonishing 341%. That’s nearly 10 times the growth of Microsoft!!

While not intending to provide investment advice with this article, it is to demonstrate the amazing difference a CEO can have on the direction and profitability of their company. While Microsoft has remained a leader in the desktop software market, they have since struggled in everything else they have tried. On the other hand, Apple has not only maintained its loyal following for its PC alternative, but it has also transformed itself into a dominant multimedia company known for the iPod, iPhone and iTunes.

There are many similar examples of how CEO’s have changed a company’s fortunes, but let’s take a look at how they might do it. Ideas are everywhere, but why do some CEO’s always seem to have great ideas while others struggle to keep afloat in hard times. The difference between individuals is often their ability to see the world around them and recognize when opportunities present themselves.

This lesson can also be demonstrated through the career of Peter Lynch. As manager of Fidelity’s Magellan fund from 1977 through 1990, he returned an incredible 29.2% on average per year! Mr. Lynch is well known for his investment philosophy of “invest in what you know”, but he also espoused the theory that individual investors could spot good investments in their day to day lives before Wall Street could. This of course is only true if we as investors or CEO’s look around at what is happening to the world and are able to recognize opportunity.

While opportunity knocks at our door every day, it is only those with a truly heightened sense of awareness that are able to recognize it. Peter Lynch did this by constantly trying new things and going to new stores. You can also do this by stepping outside of your daily routine, take a different route to work for instance or watch a different TV show. While these are simple examples that in of themselves may not change anything, the intention is to merely point out the need to break some of your habits and open your world to the potential that your greatest opportunities might just be waiting to be recognized.  

Another great source of ideas is those that come from your employees. Fostering an environment where your employee’s ideas are sought after and appreciated will allow your organization to become more innovative and nimble. Ideas and opportunities will bubble to the forefront.

 In the animal world this is demonstrated by  the herd affect. Individual animals with one set of eyes and senses are more susceptible to being someone’s dinner, while the herd with hundreds of eyes, noses and ears can recognize even the faintest danger or opportunity. Now transfer your organization into one that is adept at using all of its resources to recognize those opportunities and you too can become a CEO capable of transforming your organization into one that is both agile and innovative.