Stepping into the CEO role can feel like both the pinnacle of your career and the start of a steep learning curve. Suddenly, you’re at the helm of an entire organization, responsible for driving the vision, inspiring the team, and meeting everyone’s expectations, from shareholders to employees. It’s thrilling, but let’s be honest—it’s also daunting. And while you may come into the role with a strong plan, it’s easy to fall into a few common traps that can derail your success early on. If you’re about to—or have just—taken over as CEO, here’s what to watch out for and how to sidestep common mistakes CEOs make.
1. Rushing to Make Big Changes Without Understanding the Culture
It’s natural to want to hit the ground running. Maybe you’ve been hired to shake things up or steer the company in a new direction. A common mistake that CEOs make is diving in with radical changes before understanding the company culture is a recipe for disaster. Organizational culture is one of the most critical factors in determining the success of a CEO’s strategy. Failing to account for it can lead to resistance, loss of morale, and potential turnover (Groysberg et al., 2018).
Instead of charging ahead with all the changes you are eager to implement, slow down—just a bit. Spend time listening and observing. Take stock of the unwritten rules, office dynamics, and decision-making processes. This approach mirrors what Daniel Goleman refers to as “emotional intelligence” in leadership, which emphasizes understanding the emotions, values, and motivations of your workforce (Harvard Business Review, 1998). You’ll get a clearer picture of what needs to change and what should stay intact. Plus, this helps you earn trust early on, which is invaluable when it’s time to implement your vision.
2. Not Building Relationships with Key Players
Being a CEO is not a solo gig. One of the biggest mistakes CEOs make is not investing enough time in building relationships with key stakeholders. Whether it’s your board, senior leaders, or long-term employees, you need to build relationships to succeed. In an article published in Leadership Quarterly, Carter et al. (2019) that found CEOs who prioritize internal networking tend to see higher performance outcomes because they can better leverage knowledge, influence, and collaboration.
As a new CEO, make relationship-building a top priority. Schedule one-on-ones with senior leaders, meet with department heads and get to know the team behind the scenes. Doing this shows you’re invested in their perspectives and gives you a 360-degree view of the company’s strengths and challenges. You’ll quickly gain allies who are more likely to back your future decisions.
3. Thinking Past Success Will Work Everywhere
It’s easy to fall into the trap of thinking, “What worked in my last company will work here too.” But every organization is different. You can’t just copy and paste strategies from previous roles, no matter how successful they were. Effective leaders tailor their strategies to fit the unique context of the organization and industry (Journal of Leadership Studies, 2017).
So, you need to ADAPT. Take time to evaluate the specific needs, challenges, and opportunities of your new organization. Sure, your past experiences are valuable, but tweak them to fit the new context. As noted in an article from Harvard Business Review, the best leaders remain open to adapting and rethinking strategies when necessary to avoid stagnation (Watkins, 2012). Leadership is less about sticking to old formulas and more about knowing when to innovate based on the current environment.
4. Micromanaging or Not Delegating Enough
CEOs who fail to delegate effectively are more likely to face burnout and lose the trust of their senior leaders (Finkelstein & Peteraf, 2017). It’s tempting to be involved in everything, especially at the beginning. After all, the buck stops with you. But trying to oversee every little detail not only spreads you too thin, it also disempowers your leadership team.
So, find a balance. Trust your senior team to run their departments while you focus on steering the ship. Delegation doesn’t mean disengagement—stay in the loop on critical decisions, but let your leaders do what they do best. When your team feels empowered, they’re more engaged and productive, as Goleman’s research on leadership styles supports (Harvard Business Review, 2000).
5. Underestimating How Hard Change Can Be
Change management is a beast. Even if everyone agrees changes are necessary, it doesn’t mean they’ll happen smoothly. So you need to have a well-thought-out change management plan and avoid of common mistake of not comm. Communicate why change is needed, what the process will look like, and how it benefits everyone. Be transparent, patient, and ready to provide support along the way. Implementing change in phases will also help ease people into new ways of working, making them feel more comfortable with the transition.
6. Ignoring the Outside World
You’re deep into internal meetings, reviewing processes, and getting a handle on operations—but don’t forget what’s happening outside the company walls. External market forces, competition, and shifts in consumer behaviour can make or break your plans if you’re not paying attention. Therefore, you need to stay attuned to industry trends, competitor strategies, and market shifts. Building a future-proof strategy requires you to not only optimize internal processes but also anticipate external risks and opportunities. CEOs who lead with an eye toward both internal and external realities are better positioned to create innovative strategies that stand the test of time (Rothaermel, 2019).
7. Not Having a Clear Vision
Clarify your vision early on. Decide what you want your legacy is going to be as a leader. Make sure it’s compelling, easy to understand, and aligned with the company’s values and goals. CEOs who have a clear vision are better able to secure buy-in from their team. John Kotter’s work on leadership highlights that vision-driven leadership is essential for aligning team efforts and driving long-term success (Harvard Business Review, 1996). Don’t just state your vision once and move on—communicate it consistently. A clear vision gives your team something to rally around and a sense of purpose as they work toward shared success.
8. Burning Yourself Out
In your quest to hit the ground running, you might find yourself overloaded, working long hours, and juggling a million things. Be strategic with your time and energy. While it’s understandable to want to prove yourself, one of the most common mistakes CEOs make is pushing beyond their limits. Burnout is real—and it can lead to poor decisions, lack of focus, and ultimately less effective leadership. Prioritize what requires your involvement and delegate the rest. Make time for self-care and reflection—you’ll lead better if you’re operating at full capacity.
9. Not Learning from Your Early Mistakes
Mistakes are inevitable, even for CEOs. But one of the biggest errors mistakes you can make as a CEO is refusing to acknowledge them. You’ll gain far more respect if you can own up to a misstep, learn from it, and pivot quickly rather than sticking to a sinking ship out of pride. Stay open to feedback, and don’t shy away from admitting when something doesn’t go as planned.
The Path to Success: Prioritizing the Essentials
Time is one of the most limited resources for a new CEO, and with countless demands from stakeholders, employees, and the market, it’s easy to feel overwhelmed. So where should your focus be? First and foremost, prioritize understanding the company’s culture and building relationships with key players. As emphasized earlier, these are foundational for driving successful change and gaining trust. Without a deep understanding of the organizational dynamics and key stakeholders’ perspectives, any early decisions may falter.
From there, focus on articulating a clear vision for your leadership. This is crucial to align your leadership team and employees, giving them a sense of direction and purpose as you move forward. Change management and external market scanning should come next, allowing you to adapt your strategy based on internal and external factors. Finally, while staying involved in all aspects is tempting, be mindful of delegation. Empower your leadership team to handle day-to-day operations while you maintain focus on the bigger picture. Prioritizing in this order ensures that your early moves as CEO are strategic and well-supported by your team.
Final Thoughts
Becoming a CEO is an incredible achievement, but it’s not without challenges. By avoiding these common mistakes CEOs make and leading with a mix of confidence, empathy, and strategy, you’ll set yourself up for long-term success. Embrace the learning curve, stay connected to your team, and remember—you’re not just managing a company, you’re leading it into the future.
References
- Groysberg, B., Lee, J., Price, J., & Cheng, J. Y. (2018). The Culture Factor. Harvard Business Review.
- Goleman, D. (1998). What Makes a Leader? Harvard Business Review.
- Carter, M. Z., DeChurch, L. A., Braun, M. T., & Contractor, N. S. (2019). Leadership Dynamics and Network Structure in Top Management Teams: A Longitudinal Perspective. Leadership Quarterly.
- Watkins, M. D. (2012). How Managers Become Leaders. Harvard Business Review.
- Finkelstein, S., & Peteraf, M. (2017). Managers, Not MBAs: What Leaders Must Do to Create the New Economy. Administrative Science Quarterly.
- Kotter, J. P. (2011). Leading Change: Why Transformation Efforts Fail. Journal of Organizational Behavior.
- Rothaermel, F. (2019). External Forces and Strategic Management: Navigating Shifts in Competitive Advantage. Harvard Business Review.
- Bennett, J. B., Patterson, C., & Taylor, M. (2021). The Role of CEO Self-Care in Decision-Making Quality and Organizational Outcomes. Journal of Occupational Health Psychology.
- Owens, B. P., & Hekman, D. R. (2012). Modeling How to Grow: An Inductive Examination of Humble CEO Behavior, Contingencies, and Outcomes. Harvard Business Review.
Comments are closed