THE PATH TO THE TOP CEO Insights
Aug 12, 2015
THE PATH TO THE TOPCEO Insights
QUICK STATS:
Average age whenappointed CEO
45Earned an MBA 41%
Extended family included a CEO
28%Earned a JD3%
Average college GPA3.51
CEOs come from diverse backgrounds and possess varying character traits, but is it realistic to think that anyone can become a CEO? Or, is it more likely that particular social or educational influences render certain individuals better suited to assume this role? In an effort to understand where CEOs come from and how they reach the top of their organizations, we surveyed 161 current and former chief executives and found that there exist clear family, educational and personality-based factors that substantially influence one’s likelihood of becoming a CEO.
Background & Education
Skyler Hicks: [email protected] | Vasudev Bailey: [email protected] p.1
» Whereas 41% of male CEOs are the oldest sibling, only 17% of top female executives could say the same.
» Family connections may matter more than you think – almost a third of our respondents listed a CEO in their family.
» You don’t have to be at the top of your college class to excel in business. 80% of CEOs earned GPAs lower than 3.8 on a 4.0 scale.
» While 95% of CEOs considered graduate school a worthwhile investment, surprisingly few of these CEOs earned JDs as compared to MBAs.
WHAT TYPE OF SCHOOL DID YOU ATTEND?
PublicUniversity
PrivateUniversity
36.4%
59.4%63.6%
40.6%
GROWING UP, WHICH CHILD WERE YOU:
Only Child
Youngest
Middle
Oldest
8.3%
0%
25.9%
41.7%
24.5%
41.7%
16.6%
41.3%
27%
21%
10%
9%
6%
6%
5%
5%
3%
2%
2%
2%
1%
1%
0%
0%
ENTP
ENTJ
INTJ
INTP
ENFP
ESTJ
ESTP
ISTP
INFP
ENFJ
ESFP
ISTJ
ISFP
ISFJ
ESFJ
INFJ
The Personality of a CEO
MYERS-BRIGGS PERSONALITY TYPES:
DAVE PEACOCK Former President & CEO, Anheuser-BuschInventive, Enterprising, Bored by Routine, Enjoy New Challenges
VICKY GREGG Former CEO, BlueCross BlueShield, TennesseeLogical, Independent, Strategic, Inclined to Plan and Set Goals
MARVIN ROMANOW Former CEO, NexenTheoretical, Analytical, Imaginative, Excel at Solving Complex Problems
FRED KLEISNER Former CEO, Morgans Hotel Group Co.
Spontaneous, Creative, Enthusiastic, Seek and Provide Support to Others
DAVID BRENNAN Former CEO, AstraZeneca
Energetic, Pragmatic, Adaptive, Prefer Action over Inaction, Enjoy Problem Solving
ULI BECKER Former CEO, ReebokIdealistic, Creative, Friendly, Loyal
Skyler Hicks: [email protected] | Vasudev Bailey: [email protected] p.2
Results Oriented, Practical, Decisive, Will Take the Lead in Organizing Projects
My path to the top took many twists and turns, but I tried to never forget where I came from. I used a very authentic type of management style and stayed focused on the business while using my heart to motivate people.
-Jan Fields, Former CEO, McDonald’s USA (ESTJ)
Be open to every possibility and opportunity, [and] maximize your contribution in every assignment and position you’re given.
-Jeff Kindler, Former CEO, Pfizer (ENTJ)
NUMBER OF INDUSTRIES WORKED IN BEFORE BECOMING A CEO:
NUMBER OF COMPANIES WORKED FOR BEFORE BECOMING A CEO:
Career Overview
FIRST JOB OUT OF COLLEGE:
» Not all CEOs start their careers on the fast track. In fact, many CEOs begin their careers in non-business roles.
» Although women are almost twice as likely as men to work for 4+ companies before becoming CEOs, both male and female executives became CEOs at about the same age (45).
» Only 39% of male CEOs worked in 3+ industries, compared to 67% of female CEOs.
ParalegalW
aitr
ess
Tour
ist C
onsu
ltant
Scientist
Research Chemist
Railroad ManagerRailroad Fireman
Psyc
hiat
ric A
ssis
tant
Product Development
Pharmacist
Naval Officer
Gra
phic
Art
ist
Fast
Foo
d M
anag
er
Inve
stm
ent B
anke
rLeas
e Ac
coun
t Man
ager
Life Insurance Consultant
Even
t Coo
rdin
ator
Employment Manager
Elec
tric
al E
ngin
eer
Deli Meat Cutter
Com
pute
r Sal
esm
an
Computer Programmer
Clai
ms
Man
ager
Buying Manager
Auditor Attorney
Assistant to the President
Retail Store Clerk
Retail Assistant Manager
Cons
ulta
nt
Car Salesman
Bran
d M
anag
er
Bank Teller
Army Officer
Airline Pilot
Chemist
Teacher
Sales Representative
Financial Analyst
Engineer
Accountant
One
Two
Three
Four+
28%8%
25%
58%
9%
18%
21%
33%
Male CEOs whoworked for 4+ companies
92%
54%
Female CEOs whoworked for 4+ companies
Skyler Hicks: [email protected] | Vasudev Bailey: [email protected] p.3
Work harder than everyone else, take jobs and roles nobody else wants, and [be willing] to take risks.
-Craig Herkert, Former CEO, SUPERVALU; Former CEO, Walmart Americas (ENTP)
AVERAGE HOURS WORKED PER WEEKBEFORE BECOMING CEO:
Moving On Up
In the Office
In the Car
In the Shower
On Vacation
At the Gym
23.0%
17.7%
13.3%
19.5%
26.5%
<40 40-59 60-79 80-99 100+
1.3% 0.6%
47.1%
38.9%
12.1%
WHERE DO YOU COME UP WITH YOUR BEST IDEAS?
QUICK STATS:
Say a mentor wasinstrumental to their success
Years of managerial experienceprior to becoming a CEO
16Average hours/week devoted to
continuous improvement &learning before becoming a CEO
7
» If you can’t secure one-on-one meetings, attending professional conferences ranked as the next best way to network effectively. Don’t expect to meet future CEOs at the next cocktail party you’re attending.
» Becoming a CEO doesn’t require 100-hour weeks at the office. Almost half of our respondents worked between 40-59 hours per week. Only 13% worked more than 80 hours per week.
» Almost three quarters of CEOs’ best ideas come to them outside the office — it begs the question of whether office spaces inhibit creative thinking.
Cocktail partygathering
Symposium orconference
Phone call oremail exchange
MOST EFFECTIVE NETWORKING:
58%
73%
One-on-onemeeting
82%
39%
63%
Skyler Hicks: [email protected] | Vasudev Bailey: [email protected] p.4
81%
The Makeup of a Future CEO
PREFERENCES:
Employing aHands-Off Approach
MicromanagingOthers
CreativeThinking
LogicalReasoning
FollowingYour Heart
FollowingYour Head
Spending Time onLong Term Goals
Spending Time onShort Term Goals
TOP 5 BOOKS THAT TAUGHT THE MOST ABOUT LEADERSHIP:
Lean In
Good to Greatby Jim Collins
by Stephen R. Covey
by Sheryl Sandberg
by Jim Collins & Jerry I. Porras
The 7 Habits of Highly Effective People
Built to Last
3
1
2
4
The Bible5
QUICK STATS:
Work outside their currentindustry contributed to their present success
Relocated at least four timesfor work 52%Hired externally
as CEO(vs. in-house) 54%
AREAS OF FUNCTIONAL EXPERIENCE:
Strategy: 49%
Business Development: 55%
Marketing: 54%
Operations: 48%
3
1
2
4
Sales: 45% 5
Finance: 22%
R&D : 25%
Medical: 10%
7
6
8
Legal: 4% 9
10%
27%
73%
53%
73%
27%
47%
90%
Skyler Hicks: [email protected] | Vasudev Bailey: [email protected]
» As a majority of CEOs are hired externally as opposed to in-house, the opportunity to step up your career to the next level is just as likely outside your current company.
» While female CEOs (75%) are disproportionately more likely to identify with creative thinking over logical reasoning as compared to the average (47%), they are just as likely as men to favor the logical reasoning that comes with following one’s head over one’s heart.
» On average, CEOs develop functional experience in at least 3 different areas on their path to the top. Exposure to a variety of business areas, especially marketing and business development roles, serves as a catalyst for professional advancement. Very few CEOs have previous experience in R&D, Finance, or Law.
p.5