Leadership

The Struggle With Being a First-Time CEO

Some 75% percent of newly picked CEOs are now first-timers. Can boards help more with the transition?

Four Ways Boards Can Help First-Time CEOs

You’ve just become CEO, and within weeks, you realize the job is nothing like you imagined. The board demands more time than you initially expected. Colleagues talk about you constantly. And the pressure from stakeholders to bring about change—and fast—is unrelenting.

These sentiments cropped up in Korn Ferry’s latest research on first-time CEOs in Europe, the Middle East, and Africa. Today, with first-timers representing three-quarters of newly promoted CEOs, the study found that the role demands far more preparation and self-reckoning than most executives anticipate. “This is a job that tests who someone is as much as it tests their capabilities,” says Lucy McGee, Korn Ferry’s head of CEO and executive development in EMEA, who spearheaded the study.

The research comes at a time when average CEO tenure has shrunk to 6.8 years from a high of 9.2 years in 2023. Many veteran CEOs have decided they don’t want to take the helm again amid heightened economic uncertainty, stakeholder scrutiny, and geopolitical volatility. Drawing on conversations with 35 first-time CEOs, the majority of whom have been on the job for less than two years, the report shows that becoming a CEO today requires deep self-reflection and new levels of courage and resourcefulness. Here are four takeaways on how boards can better prepare first-time CEOs.

The Preparation Gap

One of the biggest takeaways from the report was that first-time CEOs often aren’t as ready as they could be—despite having spent two to three years, in many cases, preparing for the role. “Many CEOs don't have a very integrated view of the world, and that’s really important for the job,” McGee says.

Given that most first-time CEOs faced a mandate to accelerate company growth, nearly every respondent in the study acknowledged pushing too hard, too fast. Some wished they had a longer transformation period to prove themselves, while others found they encountered hostility with the board and employees.

Boards can help close the preparation gap by recognizing that first-time CEOs need more help than veteran ones. They can get a pulse on how the new leaders are thinking about their role by building a touchpoint with them into board agendas. Board chairs also play a critical role, and should establish regular check-ins to “open up a line of communication that allows a CEO to be open and vulnerable,” says Joe Griesedieck, vice chairman at Korn Ferry.

Relationships 101

Many first-time CEOs spoke of the need to invest heavily in board relationships from day one—and not just with the chair. While good chairs coach and mentor CEOs, experts stress CEOs should get to know all members of the board, recognizing that the group isn’t homogenous, but made up of individuals whose influence and knowledge can vary greatly. “It’s really important to understand what frightens a board and what gives them comfort,” McGee says.

Building trust takes far longer than most CEOs anticipate, and that notion extends beyond the board. Several CEOs also mentioned speaking to employees at all levels, from managers to security guards, to understand various perspectives. “It’s important for CEOs to understand what the rank and file are thinking,” says Ed Brady, senior client partner in Korn Ferry’s Organization Strategy Consulting practice.

The Visibility Shock

One of the most jarring aspects of being a first-time CEO, study respondents said, was the sudden visibility and the loss of control over their narrative. "Everyone has opinions about you that you can't control, no matter what you do," one CEO noted.

Experts say successful CEOs learn not to take things personally, because it’s “often a persona that people are opining on,” McGee says. “You’re just the figurehead of an organization.” It also helps for CEOs to remind themselves weekly, if not daily, why they’re doing the job, what really matters, and what’s worth letting go of.

The Need for Optimism

Optimism has always been a fairly important quality for chief executives, but the study showed that it’s absolutely paramount when you’re in the seat for the first time. It can be easy for a first-time CEO to become cynical and trust no one—especially when every time the door opens, the person on the other side is bringing up a problem. “Just try to remember that if the person could’ve solved it themself, they would’ve,” McGee says. “That’s why they’re knocking on your door.”