Calling All CEOs: Focus on These 3 Things

The following is adapted from A CEO Only Does Three Things.

On the surface it sounds easy: focus on those things that are most important in your job and leave the rest to others. Yet the world we live in is constantly bombarding us with sensory interruptions: emails, advertising, social media, the people in our daily lives, and more.

For a CEO, the challenge to focus is even more pronounced. Rather than focusing on a select number of critical areas, CEOs too often allow themselves to be drawn away into endless meetings and discussions. If you find yourself giving in to these requests believing them to be germane to the strategic nature of your role, I have good news for you: they’re not.

In businesses all over the world, CEOs are constantly doing work to which they bring no value. We are all suffering from a lack of understanding as to the proper role and function of the CEO in American business. To succeed at the top, you first need to understand your role. 

The Importance of Function and Focus

Harry Truman famously said, “The buck stops here,” and his assertion of accountability has been wildly misinterpreted in American business ever since.

What Truman meant by the phrase was that the chief executive of any organization bears the ultimate responsibility for the work done by that organization. What he didn’t mean—and this is where so many people get it wrong—is that if no one else is doing the work, it’s up to the chief executive to do the work of subordinates. 

In the US federal government, this would be like asking the President to swab the decks of a battleship because a seaman is on leave. That idea sounds crazy, but CEOs do work like this every day. This leads to dysfunction and a lack of focus.

To lead well, both function and focus are crucial.

Do These Three Things

Properly focused, a CEO has only one function doing these three things and nothing else: 

Culture. People. Numbers. 

This is truly the Holy Trinity for CEOs. Every task, every day should relate directly to improving one of these three pillars. Everything else should be delegated to someone else. 

When in doubt, let anything that isn’t Culture, People, or Numbers slide. These three pillars serve to center your focus on work that must be done. Focusing on them exclusively will clarify and inform your work at a level you’ve never reached before.

One of the great venture capitalists of the last thirty years is Fred Wilson. He founded Flatiron Partners and has led investments in digital enterprises such as Twitter, Etsy, and Uber.

Once, before initiating a search for the CEO of a portfolio company, Wilson sought advice from a veteran of the boardroom. “What exactly does a CEO do?” he asked the man.

The man answered without hesitation:

“A CEO focuses on only three things. He sets the overall vision and strategy of the company and communicates it to all stakeholders. He recruits, hires, and retains the very best talent for the company. He makes sure there is always enough cash in the bank.”

When CEOs of small organizations hear this prescription, they often reject it out-of-hand, scoffing, “That would be great, but right now I’m too busy doing what I have to do to survive.” After all, startup CEOs who spend all their time navel-gazing about the ideal culture or the best possible hire won’t be very successful. But without leaning on these non-negotiable pillars of success, survival mode will become their perpetual mode of operation.

Being a CEO is Hard

I’m stating the obvious here, but none of this is easy. Being a CEO is hard. It’s three times as hard as the next-hardest job in the organization. A good CEO takes the credit for nothing and the blame for everything. Everyone else in the organization has a right to candor, rapport, and a good night’s sleep while the CEO forgoes these for the benefit of the long-term mission. 

A CEO may always feel alone; that’s the joy and the hurt of it. But it can be one of the most rewarding jobs in the universe. As you progress, your business will grow and change. New challenges will arise as old ones fall away. Each new level of success will present a new level of opportunity. To seize those opportunities, you must continually focus on the Culture, the People, and the Numbers. When you do, greatness lies within your grasp.

For more advice on becoming a successful CEO, you can find A CEO Only Does Three Things on Amazon.

Trey Taylor is the managing director of trinity | blue, a consultancy designed to provide executive coaching and strategic planning to C-Suite leaders. His experience derives from fields as diverse as technology, financial services, venture capital, and commercial real estate development.  Frequently featured as a keynote speaker, he has addressed attendees at the Human Capital Institute, the Ascend Conference, and many other engagements. You can find out more about Taylor’s consulting work at trinity-blue.com.