What are the factors that influence hiring decisions and how does an aspiring CEO make the transition from CCO (Chief Commercial Officer) to the top job?
Our CEO Pathways report found a small, but notable, percentage of CEO appointments were individuals that came from commercial roles. Shalina Poulter, Partner in Eton Bridge Partners Commercial, Sales and Marketing Practice, explores the factors at play and sets out effective strategies for navigating a path to leading the executive team.
The transition from CCO to CEO through strong leadership, vision and networking
The Commercial leader who successfully journeys to CEO blends strategic experience, leadership acumen and a deep understanding of the business. Critically, there needs to be an expansion of skills beyond the CCO remit of sales, revenue and market strategy. A holistic view of the business, encompassing all functions such as finance, people, operations and technology is vital to demonstrating Chief Executive level competence.
The ability to demonstrate excellent leadership and people management is critical. A track record of identifying talent, developing leaders and enhancing company culture in high-performing teams can indicate the ability to shift gear from divisional leadership to steering the entire organisation. Thinking like a CEO requires a shift away from a short-term commercial focus, towards a longer-term strategic vision. Capitalising on market trends and innovation is already an area of strength for a CCO – there must then be an ability to leverage this into wider strategy.
Another central element of the CEO role is engaging positively with a broad range of stakeholders, so successful relationship building with the board, investors, public and media is crucial. Networking more widely through seeking mentors, developing a wealth of strong professional contacts and engaging with educational and developmental opportunities can also help provide the necessary skills and exposure. Being well connected can help identify the ‘right time, right place’ for a move – timing can be as important as readiness when it comes to securing a CEO role.
Choosing the right leader: is a commercial skill-set right for the company strategy?
Different companies need different leadership; some are more suited to CCO-style skillsets than others. Key factors that can influence this are:
- Growth versus cost focus
- Industry type and sector
- Company lifecycle and maturity
If a company’s primary focus is growth, market expansion or revenue generation, a commercially focused leader can be seen as a good fit for the CEO role. If, however, the focus is on cost management and operational efficiency, then a COO (Chief Operating Officer) might be better suited. In industries such as retail, consumer goods, technology and media, CCOs may have the edge due to their prowess in sales, marketing and customer relationships. Whilst companies that sit in the manufacturing, logistics, healthcare or utilities space may favour an operational COO skillset.
A company that is in a start-up or high-growth phase can be a good fit for a CCO to CEO transition as the strong commercial focus brings an ability to rapidly scale the business, expand the customer base and build the brand. Likewise, an organisation that is seeking to shift direction or bring in visionary and highly visible leadership may lean towards a commercial skillset. On the flipside, a mature company, or one that is focused on internal management, may seek the operational focus of a COO when sourcing its new CEO.
In summary, a CCO tends to be seen as a strong candidate when the company’s future is closely tied to growth, market leadership and customer engagement. Whereas, the COO may be favoured in scenarios where operational excellence, process optimisation and internal stability are paramount.
10 essential strategies for Commercial leaders transitioning to the role of CEO
Becoming a CEO does not happen by accident; commercial leaders who aspire to the role will need to take an active and considered approach.
Here are ten key strategies to consider for those seeking to make the move:
1 – Expand your strategic vision
An aspiring CEO needs a comprehensive understanding of the entire business, demonstrated by active engagement across all areas. Take part in cross-functional projects, contribute to strategic discussions, and stay informed about industry trends to help shape the company’s long-term vision.
2 – Gain P&L responsibility
Demonstrate the ability to take on full P&L responsibility and drive both top and bottom-line results. Go beyond the CCO comfort zone of the top half of the P&L to demonstrate sound awareness of all financial activities.
3 – Enhance your leadership and people management skills
Develop a leadership style that is authentic, inclusive and motivational. Look to develop future leaders too – take an active role in mentoring and demonstrate an ability to cultivate talent. Consider executive coaching or leadership development programmes to hone your skills here.
4 – Build relationships with the board and stakeholders
Engage with the board by taking the opportunity to present and speak at board meetings. Cultivate an awareness of issues around balancing governance, business goals and shareholder expectations.
5 – Demonstrate crisis management and adaptability
Don’t just be a fair-weather leader; demonstrate your ability to step up in difficult situations such as managing a downturn or competitive threat. A CEO is often judged on how they handle crises and unexpected challenges.
6 – Develop financial expertise
Collaborate with the CFO to deepen your understanding of the company’s financial health and develop skills in financial analysis, risk management and capital allocation.
7 – Expand your professional network and personal brand
Expand your network beyond your peers to include industry leaders and potential mentors. Enhance your personal brand – position yourself as a thought leader, speak at conferences, publish articles and build visibility.
8 – Seek mentorship and guidance
Identify mentors who are current or former CEOs to provide first-hand insights into the role and look for a sponsor who can advocate for your promotion to CEO. Learn from other C-level executives who have made the transition to help understand the challenge and opportunity.
9 – Prepare for the ‘public face’ of the CEO role
Don’t shy away from investor relations; volunteer to participate in investor meetings, earnings calls and shareholder events. Prepare for the external part of the CEO role by building skills in public speaking and media relations.
10 – Communicate your ambition to become CEO
Don’t hide your light under a bushel; communicate your ambition and make it known to key decision-makers that you aspire to CEO. Being vocal about your career goals means you are talked about in the room when opportunities arise. Be prepared to outline your vision for the company and how you, as CEO, would lead. Having a compelling vision and being able to communicate it can set you apart as a candidate and ensure others begin to view you as CEO rather than CCO material.
Specialising in Executive Search within senior commercial leadership and Board level positions, Shalina’s extensive experience supports senior clients and candidates in ensuring the best possible outcomes. If you would like to discuss your next steps in confidence, please do get in touch with Shalina.
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