I Got Reinvented as CEO to Drive My Company's Profits – Here Are the First 3 Things I Did to Make It Happen


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In my first month as CEO,, I sat down to lunch with some clients. To say I learned a few things is an understatement.

Those CLIENTS saw a lot of promise in our technology, which was working for their business. But by talking to them in person, we discovered some changes they could make to help them use the software to its full potential.

In other words, it was a moment every young CEO lives for. As a brand new CEO, you have a valuable window into the business—a chance to see things with fresh eyes and make real changes. But it doesn't last forever.

I recently experienced this first hand. After a two-year hiatus, I was re-appointed to the position of CEO of the POS and payments platform I founded, with the task of putting it on a long-term, profitable growth.

My situation is unique as a returning founder, but the same basic principles apply to anyone taking on a new CEO role. For those entering the workforce, here's how to capture the “fresh eyes” moment.

Connected: A step-by-step guide to achieving organizational alignment

Before you do anything, listen

During my time away from the CEO role, I worked in environmental conservation. And if there's one thing I've learned working alongside those who aim to solve complex global problems, it's that HEAR First. Listen to people, gather information and collaborate on solutions.

The same goes for a new CEO, who needs to start by building trust. As a returning founder, I had an advantage in that department. However, there are many new faces and voices since I left.

So how exactly should a new CEO listen?

Don't go in with an agenda that predisposes you to choose difficult questions and concerns. Instead, emphasize that you want to hear them, whether it's about what's not working from a strategic or low-level product or direction employee engagement. People need to perceive you as looking at the business with a critical eye, without the illusion that things are perfect.

For example, when Oscar Munoz took over at United Airlines in 2015, he began his successful turnaround with a cross-country listening tour, talking to mechanics, baggage handlers and flight attendants. I took a similar approach. Immediately we held one head abroad so I could spend time with each member of the executive team and talk to employees.

I also made customer visits to Australia and New Zealand where I met people who were the ideal profile for Lightspeed and listened carefully to the common themes that emerged.

I heard Board members and shareholders too. Getting their outside perspective was valuable in understanding not only how the market perceived our business, but also how we could continue to drive value in their eyes.

The temptation may be for a new CEO to jump in, guns blazing. But this initial stage of listening is invaluable. Across industries, companies are looking for CEOs and other leaders with strong listening skills. And the upside can be dramatic. Organizations that listen and act on employee feedback are three times more likely to meet or exceed financial goals and 10x more likely to have high customer satisfaction and retention.

Remember, it's not enough just to tell people you'll listen. The whole point is to listen from multiple perspectives and then work with your executive team to build a plan that brings together rich solutions. Then, you have a small and urgent window to take action.

Do not miss the opportunity to act

For a new CEO, one of the biggest advantages is having a runway to redirect the business, and it's important to demonstrate its continuity in the first 90 days.

I didn't go back to the role of CEO to be popular. Yes, I can still be an empathetic, compassionate and caring leader. But at the end of the day, it's a CEO's job to be effective, not to be liked.

When a new leader comes in to transform a company, it's essential to shoulder that responsibility, even if it sometimes means doing unpopular things. Listening must be a prelude to action, or else it is an empty gesture.

After taking over as CEO of Microsoft in 2014, Satya Nadella rescued the tech giant from irrelevance by quickly shifting focus away from software sales to cloud services. Thanks to this and other dramatic changes, Microsoft became one of the most valuable companies in the world.

Sometimes, this requires throwing out some long-held company traditions and practices. Before I came back, one of our annual traditions was a sales summit that flew people to our headquarters from all over the world. We tweaked the format—making it virtual—and created a ton of operational efficiency in the process.

Bringing everyone together made financial and business sense by the time the summit drew a few hundred people and helped us build our culture. But I could no longer justify such a large expenditure if it did not directly benefit customers.

Studies show since when a new CEO makes changes early, they can have a complex effect on the business. What happens in the first 90 days or so sets the stage for the company's trajectory over the next three to five years.

And people expect their leader to take action. For employees, assertiveness is one of the three main qualities of effective leadership, a global survey found, with CEOs described as “decisive” 12 times more likely be of high performance.

Connected: How to align business and customer interests for long-term success

How do you know when it all comes together?

Of course, none of this is easy to accomplish. A new CEO's first few days are full of potential pitfalls.

For starters, their arrival can be destabilizing for team members. People have different levels of tolerance for change. Especially when such changes are significant, it is important to show empathy by acknowledging that they may not be easy.

A new leader must also respect the achievements of those who helped build the company. Here, a little humility goes a long way. I am grateful for the hard work my predecessor did. Ultimately, he set us up for future success by making difficult operational changes.

Ultimately, seizing the “fresh eyes” moment as a CEO is about mastering the balance between appreciating what made the company great and making the necessary changes.

How do you know when you've got it right?

When people say they feel aligned with business – and when you feel connected, too. This does not mean that there is complete agreement. But after seeing each other's point of view, everyone has a plan to move things forward. There is energy and excitement to push in a new direction. And there is a sense that this builds on the input and hard work that has come before.

Getting all this right requires a new leader to make the most of his fresh-eyed moment: taking the time to listen first, then acting sooner rather than later.



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