No one teaches you about positive mental attitude in the business world, but when it comes to the CEO, you should be the person of optimism. As a CEO, think of yourself as the corporate cheerleader. Below you will learn why it is important to be the corporate cheerleader in your company.
As reported by Forbes on October 30th, 2023 by Michael Peregrine.
The CEO As Corporate Cheerleader
They don’t teach “happy talk” and positive mental attitude in the business schools and directors’ academies. But perhaps they should. For an underappreciated trait of effective CEOs is the ability to project a spirit of optimism both internally to the workforce and externally to corporate constituents. To be a corporate cheerleader, of sorts.
Optimism is a trait that can help improve organizational culture and enhance organizational value, if it is exercised in a judicious and balanced way. And there’s never been a better time for a steady dose of cheers from the executive suite; it’s currently a very tough environment for business.
Indeed, companies are facing significant internal challenges such as uncertain workforce culture, stressed company performance and AI’s pressure on job status. They’re also facing significant external challenges such as rising interest rates, divided government, social volatility, and of course foreign conflict. And consumer confidence fell again in September 2023, marking two consecutive months of decline. It’s not quite the Four Horsemen of the Apocalypse, but it’s a heavy dose of negativity nonetheless.
In that context, leadership optimism-whether from the CEO, the Chair or both-involves much more than mere enthusiasm and a “rah-rah” spirit. Shaking the pom-poms might be fun, but that’s not the kind of cheerleading that we’re talking about.
Rather, it’s about a mindset grounded in rational confidence in the company’s future and in the ultimate confidence of leadership decision-making. It’s a confidence that rejects irrationality and delusion. It’s a “tone at the top” that sustains commitment to goals and objectives when barriers and challenges appear. It’s also a spirit that’s most likely to motivate employees and preserve their loyalty when things turn bad.
These concepts can inspire, enable and empower the workforce. They can also positively influence a company’s actual and potential investors, consumers, partners, lenders, vendors and other constituencies. Indeed, leadership optimism can be a valuable intangible corporate asset, and thus a key attribute of successful board and executive leaders.
The economist Daniel Kahneman has referred to the optimistic culture as the “engine of capitalism” to the extent it serves as a prerequisite for executives who seek success in spite of great odds. In many ways, it’s President Kennedy’s iconic “We go to the moon…not because it is easy, but because it is hard” stake in the ground.
But corporate cheerleading has its risks. Part of it involves personality; it’s not for everybody. The introverted or quiet CEO is unlikely to be comfortable wearing a cheerleader uniform, while the aggressive CEO may go overboard with enthusiasm. The miscast CEO may project simplistic or unsophisticated cheerleading to offset fear of failure or lack of qualifications. The workforce will easily see through those charades.
Then there’s the matter of timing. Cheerleading during periods of corporate distress will cause long term credibility damage if it serves to obscure obvious truths about the company’s condition.
Furthermore, wrapping baseless claims as optimism within a marketing campaign can damage the credibility of the company and its CEO with the customer base. Unsubstantiated optimism that is included within statements, disclosures, reports or filings to lenders, investors, courts, regulators and others can create specific legal exposure to the company and the CEO. Keep in mind that in a law enforcement context, there is sometimes a narrow line between what is intended as mere “puffery” and what could be interpreted as an intent to defraud.
The board and the general counsel can play helpful roles in evaluating the circumstances and advising the CEO on the best course of action. As part of their regular conversations with the CEO, it can be useful to discuss the intended “tone at the top” in all of its elements, and guidelines for the company-appropriate expressions of optimism.
Risks notwithstanding, the organizational value of CEO cheerleading shouldn’t be underestimated. Properly designed, considered and monitored, the CEO’s voice of optimism can inspire, enable and empower the workforce and create greater marketplace interest for the company’s products and services. Being a good cheerleader may not be a critical requirement for the CEO position, but it sure helps.
As the classic song from the “Great American Songbook” reminds us:
“You got to ac-cent-tchu-ate the positive
E-lim-i-nate the negative
And latch on to the affirmative
Don’t mess with mister In-between”
Additional Leadership Resources
The Role of Emotional Intelligence in CEO Leadership
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