Lane on… CEO Performance

It’s a tough question; “What makes a good CEO?”  Here’s an article from the Harvard Business Review about CEO performance.  They rank the 100 top performing CEOs.  Their criteria include total shareholder return, and market capitalization.  They also used a ranking provided by the Reputation Institute to measure intangibles.

Redbank’s perspective on this is that of the owner of the business.  We look at what makes a firm stronger and a better investment for its owners so we look at enterprise value.  Things like the intangibles that HBR looked at are necessary and prerequisites to driving value.  There’s a lot required to be successful and it isn’t easy.  But the ultimate measure is the value and strength of the firm.

If you’re interested in this subject, you might want to read The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William Thorndike.  It’s a much tougher standard to meet.  If you can meet Thorndike’s standard, you can be proud of what you accomplish and secure in the knowledge that you build business value in a sustainable way.  If you are a CEO, you know you create value.  If you are an owner, you know that your investment will grow in value and security.