The departure of three chief executives following questions about their management style reflects a shift in community standards that leaders cannot ignore.
The CEO of one of Australia’s blue-chip firms still vividly remembers the special task he was given in his first job as a cadet at a steel mill: organise a carpenter to be on standby every Monday morning.
In July, Oil Search boss Kieran Wulff retired, apparently for health reasons. But the company also said Wulff hadexpected by the board in relation to his management style”. Yes, community expectations around CEO behaviour have shifted in recent years, which the chairman says reflects major societal changes such as the #MeToo movement and much greater awareness of the damage caused by bullying.
These experienced directors say the modern chief executive needs to be much more inclusive and democratic than in the past. “Most CEOs will have 10 people around them and they all think they are equal,” our director says. A leader must think about – and be cautious about – how and when they use power.The word both use to describe the key to the way a CEO interacts with his subordinates is respectful. “It’s so often not what you say, but how you say it.
He says directors need to have a sixth sense for potential red flags. Does the CEO address subordinates in a respectful way? Can you talk to staff at lower levels of the organisation to get a sense of the state of the group’s culture? What’s the difference between a robust conversation and a pattern of poor behaviour?
In fact, several CEOs say that they know when they’ve set expectations properly when they don’t even need to express disappointment themselves. “If you’ve got it right, the person will be more disappointed in themselves than you are in them.”
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