The Myth of the Best CEO: Evaluating Leadership and Success

Quoting Abhaya, the perception of a CEO as the one who must be the best dates back to a time when leadership success was often mythologized. The phrase 'demonstrates the ability to sell oneself' suggests a more sales-oriented model of leadership, whereas Carver Wrightman (alias Cecil R. Williams) presents a clearer picture of a CEO who leads through accomplishing enormous workloads and working through many others in a competitive marketplace.

Why the Myth Persists

The persistent myth of the 'best CEO' often hinges on their personal performance and the success metrics they achieve. However, the case of Dennis Muilenburg, the former CEO of Boeing, paints a different picture. Despite being one of the highest-earning CEOs, Muilenburg found himself at the center of a major crisis. His failure to bounce back from the Max 737 jetliner debacle cost him not only his job but also significant personal benefits, including a substantial severance package.

Evaluating True Leadership

True leadership is more complex than assessing intrinsic worth or self-promotion. It involves addressing significant challenges, motivating teams, and making decisions that benefit the greater good, even in the face of adversity. Muilenburg’s failure to achieve these outcomes led to a loss of trust among stakeholders and a need for drastic action. His inability to navigate the crisis effectively highlights the need for accountability and integrity in leadership.

The Role of Accountability and Ethics

Accountability is a critical component of effective leadership. CEOs are expected to make difficult decisions and take responsibility for their actions. When Muilenburg failed to do so, it led to his removal from the position and a substantial financial penalty. This underscores the importance of ethics and integrity in leadership roles. A leader who cannot own up to their mistakes and take responsibility for the outcomes is not only failing themselves but also their organization.

The Stakeholders and Their Roles

The decision to remove Muilenburg was not just a personal one but involved a broader stakeholder group, including shareholders and employees. Stockholders and employees have a vested interest in the success and ethical leadership of a company. If a CEO is deemed incompetent, there is a massive impact on the organization's reputation and financial standing. Removing the entire board of directors would signal a strong commitment to reform and accountability and could be seen as a necessary step to restore trust and confidence in the company.

Conclusion: True Success Beyond Monetary Metrics

The lesson from Muilenburg’s case is that true success as a CEO is not solely defined by monetary metrics or personal achievements. A leader's ability to navigate complex challenges, maintain integrity, and inspire confidence among stakeholders is paramount. While prestige and financial gains are part of the role, they should not overshadow the importance of serving the greater good and ensuring long-term sustainability. The real test of a CEO's worth lies in their capacity to lead effectively during times of crisis and inspire a culture of accountability and ethical behavior within the organization.