What the CEO Wants You to Know

Author: Ram Charan

Think back to your school days and recall the best teacher you ever had. That teacher seemed to know everything about their subject and possessed something other teachers lacked: the ability to summarize and simplify complex ideas related to the discipline—be it psychology, economics, mathematics, or chemistry—in a way that allowed you to “understand” them. Other teachers might have been just as knowledgeable, or held higher degrees, but they might not have been able to convey the information to you. Instead of simplifying complex matters and making them easy to understand, they did the opposite, making things seem even more difficult to grasp. I have been working in business for over fifty years, starting as a child in my family's shoe store in India, then as an engineer in Australia, and from there I moved to America, studying at and teaching at Harvard Business School, Kellogg School of Management at Northwestern University, and Boston University. I have also advised executives and served on the boards of large and small companies around the world ever since. The one thing I've noticed during that time is that the best executives are like the best teachers: they have the ability to simplify all complexities and clarify all ambiguities in the business world by focusing on the fundamentals of making money. Furthermore, they ensure that all company employees, not just their executive colleagues, clearly understand the business fundamentals. You might say they do this primarily for their self-interest, as the company will be more successful when everyone knows how the business works internally. However, the CEO is not the only one who benefits from this. When employees understand how their organizations are managed, they feel more connected and experience greater job satisfaction. As the company grows and its profits increase year after year, they have more opportunities to develop their careers and earn more money, and the company can make significant contributions to society. The same applies to governmental and non-profit organizations (see the box on the next page titled: "Wait! Does this apply to Non-Profits, NGOs, and Government Organizations too?"). This is why competent executives around the world work hard to clarify matters. Therefore, I want to share with you what the CEO wants you to know, so you can learn, develop, and make great contributions, not only to your organization but also to the world around you.