CEOs are regularly faced with decisions that require the balancing of outcomes and managing trade-offs. These decision points typically center around one or more of five key dilemmas.
McKinsey pinpointed the five central dilemmas from discussions with CEOs across industries and its assessment of leadership performance. Find the full article exploring each dilemma in greater depth here.
The primary tensions, which leaders may encounter simultaneously, are:
1. Preserving the core v. innovating for the future. Preserving the core and future-proofing of companies can often feel like conflicting goals, with CEOs left to manage the balance between sustaining today and building for tomorrow and all of the results, consensus-building and prioritization that comes with it.
2. Delivering short-term results in the face of volatility v. investing in long-term performance. While CEOs strive to act in the company's long-term best interests, they frequently encounter conflicting opinions from the board and other stakeholders. They may feel pressured to boost short-term value in ways that could undermine long-term success.
3. Managing a team of individual stars v. maximizing a star team. Several CEOs mentioned struggling with managing individual star performers who, despite delivering strong results, did not collaborate effectively with the top team. Some CEOs also highlighted a related point of tension in finding the right balance between long-tenured, loyal employees and new hires who possess the skills needed for transformation but may not fully align with the company's values.
4. Empowering the team to make critical decisions v. maintaining sole control of outcomes. CEOs are ultimately responsible for company outcomes and may, therefore, be hesitant to relinquish control. McKinsey notes that deciding how and where to cede control can be an ongoing challenge for CEOs, even for those with longer tenures.
5. Immersing fully into the CEO role v. retaining personal identity and sense of purpose. Most leaders aim to perform at their highest level, which takes significant focus, commitment and resilience. However, CEOs also shared with McKinsey that balancing professional demands with a personal life is an ongoing challenge. Additionally, they face some tension in integrating their personal identity, values, and sense of purpose into their role rather than conforming to stereotypical expectations of a CEO.