Book Summary Preview :
The Five Temptations of a CEO

Managing a company need not be complicated, and being a CEO should be conceptually simple. True, business leaders face difficult problems and challenges, but they eventually get the results they want. Complications arise when CEOs refuse or fail to focus on the source of the problem. They are distracted by side-issues and get confused because they succumb to one or more of the five temptations that face every business leader.

The author uses a fable to expose the inherent human temptations that create barriers to successful leadership. CEOs, at one time or another, fail to overcome the temptations which are deceptively simple since they are considered human nature. The book sweeps away the confusions that prevent managers from achieving their goal — guiding them away from the pitfalls of the five temptations.

Andrew O’Brien, CEO of Trinity Systems, is troubled. Tomorrow will be the first-year anniversary of his promotion. There will be no celebration, however. Instead, he will attend a board meeting where he will be made to account for the results of the fiscal year. He doesn’t expect pats on the back because his performance is unspectacular, at best.

Feeling low, Andrew stays past midnight at the office, something he hasn’t done since he became CEO. Finally he decides to go home, where he can draw moral support from his wife and kids before he faces the board tomorrow morning. As the bridge he drives by on his way home is closed for repairs, he decides to take the train.

Walking two blocks to the Bay Area Rapid Transit station, he boards the train and meets Charlie, an elderly man who appears to be a janitor of some kind. Andrew, feeling exhausted and confused, was drawn into a strange conversation with the old man, who seemed to know what was bothering him and the causes behind his problems.

Reluctantly, Andrew discusses the conflicts he is facing. The old man listens and bluntly tells Andrew that he must be failing in his job. He is not side-tracked by what Andrew described as complexities and subtleties that make success unpredictable.

Andrew is astounded when he realizes that the root causes of his dilemma are some of the “solutions” he utilized to patch up some uncomfortable problems. Charlie, seeing Andrew’s bewilderment, then unravels the five temptations which lead uneasy CEOs to take midnight rides.

At the heat of the discussion, the two were joined by a tall man, a bald man and a stylish man. Oddly enough, the three seemed to know what Andrew and old man Charlie were talking about and chipped in their share of wisdom.

By the time the eerie conversation was done, Andrew and Charlie were off the train and alone again. Then Charlie suddenly hopped into a passing bus, leaving a surprised Andrew shouting for him to come back. The next thing Andrew hears is the blaring sound of a horn, and he is back on the train. He has dreamed the entire episode of the conversation with Charlie and the three strangers. But the lessons he learned from the dream were real and remained in his mind.

The Five Temptations of CEOs

1. Choosing Status Over Results

The first temptation is the toughest one to fix. Some CEOs tend to put priority on the status of their career instead of achieving results, the true measure of success. They focus on the higher rung of the ladder, not on accomplishing more for the company. Although it is only right that executives should be proud of the milestones in their personal careers, they should not lose sight of the purpose of their positions — to achieve results for the firm.

No wonder old man Charlie was disappointed when Andrew told him that the best day of his career was when he was promoted to CEO. Imagine, Charlie said, the President of the United States saying that the high point of his career was getting elected to the post, not accomplishing great things through his powerful status.

Charlie acknowledges Andrew’s point that most CEOs are driven by their ego to accomplish results. If the focus remains on the CEO’s status instead of the firm, however, less work is done for the company and more time is spent wallowing in the comforts of the new-found status.

Most CEOs are prone to put something ahead of results in their list of priorities. This skews the values of the organization. The CEO tends to reward employees who contribute to his ego, instead of those who produce results for the company.

2. Choosing Popularity Over Accountability

Even if the executive is not overly focused with his status, he could still fail to achieve results for the company if he avoids or refuses to hold subordinates accountable for their responsibilities. Fear of becoming unpopular among colleagues makes the executive ineffective because he cannot implement policies which require more responsibilities and accountability. . . . . . .