By Ioana Monica Dorhoi, PhD
March 5, 2025
The role of the modern CEO has evolved drastically in recent years. Today’s chief executives are not just stewards of profitability but leaders who shape the culture, strategy, and long-term vision of their organizations. The challenges they face are numerous and complex, but their ability to make a difference lies in identifying where their unique skills and perspectives can create the most impact.
Drawing from insights gathered through in-depth interactions with over 1,000 CEOs, including those who have transitioned out of their roles, we’ve identified six key moves that can empower CEOs to lead their organizations toward lasting success.
1. Creating Purpose and Clarity
Purpose is the foundation upon which a company’s mission is built. It’s the “why” behind everything the organization does. A CEO plays a pivotal role in shaping and articulating this purpose, ensuring it resonates throughout every facet of the company—from the people and culture to the strategy, operations, and branding. A clear, compelling purpose is more than just an aspirational statement; it guides decision-making and drives energy within the company.
The CEO is also responsible for crafting a clear strategic narrative that links the company’s purpose to its goals and initiatives. This narrative should outline the company’s ambition, priorities, and measurable objectives, as well as the culture and capabilities required to achieve them. By ensuring that employees, customers, and investors are aligned with this narrative, the CEO creates a shared understanding of the company’s direction.
2. Creating Focus
Once a clear purpose and strategy are in place, it’s the CEO’s responsibility to focus the organization’s efforts on the most critical priorities. With limited resources and time, every organization must make difficult decisions about what to pursue and, just as importantly, what to leave behind. Effective prioritization is vital to ensure the company’s resources are aligned with its most important goals.
Deborah Ellinger, an experienced CEO, recommends using a “now, next, never” framework to evaluate initiatives based on their urgency and potential impact. CEOs must be comfortable making tough decisions, including saying no to projects or initiatives that may divert attention from higher-value goals. This focus enables organizations to deliver greater results by zeroing in on the initiatives that truly matter.
3. Creating Capacity
Strategy alone is not enough to achieve success. For an organization to execute on its goals, it must have the capacity—both in terms of talent and technology—to get the job done. CEOs need to ensure the leadership team is diverse, not just from a moral perspective but also for the competitive edge it provides. Different perspectives lead to better problem-solving and innovation.
Additionally, modern CEOs must foster emotional intelligence in their teams, recognizing and addressing organizational fatigue and stress. This involves understanding the emotional landscape of the company, particularly in times of change, and taking steps to alleviate anxiety and maintain momentum. Investment in technology and employee upskilling, particularly in areas like AI, is also crucial for driving productivity and enabling smarter decision-making.
4. Creating Drive
A CEO must be more than a decision-maker—they must inspire. Creating drive within an organization involves instilling belief in what’s possible and fostering a culture of accountability and action. While stability is essential, especially during uncertain times, CEOs must go beyond reassurance. They must energize their teams to achieve their full potential, generating enthusiasm and a sense of urgency.
Storytelling is an effective tool for motivating employees, as it reinforces the CEO’s commitment to the company’s vision while encouraging others to go beyond their perceived limits. When employees believe in their leadership and feel inspired, they’re more likely to act with urgency and purpose, propelling the company forward.
5. Reducing Complexity
Growth often brings complexity—new markets, products, and innovations can pile on additional layers of strategy and operations. However, not all complexity is beneficial. In fact, unnecessary complexity can slow an organization down, making it harder to focus on what matters most. CEOs must simplify operations, streamline roles and responsibilities, and align resources with key strategic objectives.
Eliminating complexity requires tough decision-making, such as cutting non-core products or reorganizing teams to better support strategic priorities. A simplified approach allows the organization to focus on high-impact areas and avoid distractions that can impede progress.
6. Reducing Friction
Friction within teams can be productive, leading to important conversations and innovation. However, unproductive or unresolved friction can hinder progress, breed mistrust, and slow down decision-making. CEOs are uniquely positioned to address this friction by fostering an environment where open, constructive dialogue is encouraged, while also resolving unhealthy conflicts that may arise.
By setting expectations for transparency and collaboration, the CEO can minimize misunderstandings and ensure alignment across the leadership team. Whether it’s through reshaping the leadership team or providing clarity on decision-making frameworks, CEOs can reduce friction, ensuring the organization operates smoothly and efficiently.
Why This Matters Now
As the ultimate decision-maker, the CEO’s time and energy are limited. With so many challenges to address, it’s important for CEOs to be discerning about where they focus their efforts. The key question they must ask themselves is: Will my involvement create purpose, focus, capacity, drive, or reduce complexity or friction? If not, the CEO must step back and empower others to take charge, ensuring the organization is positioned for success without overloading the leadership team.
In periods of uncertainty and rapid change, the decisions a CEO makes—what to prioritize, simplify, and lead—will have a profound impact on the long-term success of the organization. By honing in on these six critical moves, CEOs can guide their teams with clarity and resilience, navigating challenges and emerging stronger in the face of disruption.
Ioana Dorhoi, PhD – Government Relations and Public Affairs 