If you had the choice of growing at a 5.8 percent compound annual growth rate in a five-year period or declining 9.2 percent, which would you choose?
While the answer is obvious, the real question is, what does it take to end up on the positive side of the equation instead of the negative? Simple: some trusted friends.
The numbers above illustrate the difference in compound annual growth rates for members of Vistage, an organization for CEOs, and the average U.S. company. On average, just by belonging to Vistage, you are going to see much better growth. Why? Because you get insights about your business from CEOs who aren’t lost in the day-to-day issues.
Vistage, and other organizations like it (Young Presidents’ Organization, Entrpreneurs’ Organization — there are others as well) help you run your business better by putting you in contact with other CEOs.
Let’s face it; being in charge can be a lonely experience. At the end of the day, a lot of responsibility falls onto your lap, and if you fail, a lot of lives are affected. Some of us are blessed to have an inner circle of people we trust to bounce ideas off of and know that if an idea is bad, someone will speak up. But there are others out there that for whatever reason don’t have that trusted inner circle.
To be successful, you need to be willing to open up about problems before it’s too late to do anything about it. Telling someone you need help isn’t a sign of weakness. In fact, it’s the opposite. The increased success rates of companies that participate in peer groups bear that out.
You don’t have to have a giant network of other CEOs to be successful. Having two people that you trust and value their opinions is probably all you need. Two trusted friends can help you navigate through tough decisions and act as a sounding board for your ideas.
Working with your peers to review your ideas and goals is a great way to eliminate stress. They can provide the confirmation and validation you are looking for as you move your organization forward and can point out potential pitfalls you may have overlooked.
Sometimes, just having someone else say, “Yes, I think that will work,” can go a long way toward putting you at ease.
So what do you do if you don’t have a couple of people whom you trust? That’s where the professional organizations like Vistage come in. They can provide the same sort of feedback in a group setting and also offer a great way to network with other CEOs. As you build your network, you will most likely find a few people you are comfortable with and can build a closer relationship with them.
The most important aspect is to not try to go it alone. Whether you have a trusted inner circle of a few people or prefer a larger group setting, it’s important to have some sort of sounding board for your ideas. It’s also important to have people who understand what you are going through. Other CEOs can relate to the challenges of leadership and talk about what keeps them up at night. What you’re likely to find is that many of the same issues that bother you are also bothering others. Work together to find solutions or at least talk it through. You might discover a new approach to an old problem.
After all, two heads are better than one.
Fred Koury is president and CEO of Smart Business Network Inc. Reach him with your comments at (800) 988-4726 or [email protected]