The Evolving Role of the CEO Part 1

The definition of a CEO in today's volatile, ever-changing world is no longer the same as it used to be. The value of continuous adaptation pushes chief executives to evolve as they work their way into 2025. The future will require firms to embrace new technologies, foster soft skills, and nurture innovation and durable growth. So, let me start with the evolving role of the CEO of today and the first two core skills that every chief executive should hone. This is part one of a two-part series on the evolving role of the CEO.

The Evolving Role of the CEO

The average CEO's innovation has gone far beyond the old expectations. Today, chief executives contend with accelerated digital transformation, perpetual market volatility, and increased environmental and social governance demand. This evolution forces CEOs to be reactive and proactive, anticipate shifting markets, and take advantage of opportunities to innovate before their competitors.

According to research by the Harvard Business Review, some 67% of CEOs say their role has fundamentally changed in the last five years. They are under more pressure than ever to deliver short-term results while also thinking long-term to create a solid foundation for the future. The strain of this dichotomy is novel, prompting many executives to seek guidance and support from executive coaches who specialize in helping leaders navigate this competing demand.

Executive coaches have become powerful allies for existing and future CEOs. They offer tailored approaches to help leaders flourish in complexity without jeopardizing their health and well-being. For example, a borderline inept CEO commissioned a personalized learning journey with a coach that increased the organization's digital fluency by 20% against the entire workforce. Recent research shows a lift in overall leader effectiveness and organization performance, exceeding 80% when coaching is applied to senior leaders. This highlights executive coaches' critical role in developing the skills of CEOs. Strategies like personalized learning plans, regular feedback sessions, and targeted skill-building exercises could all be part of the process.

Skill 1: Technological Acumen

A time when being technology literate will be a necessity to survive, not simply a nice-to-have. By learning about technologies such as AI, ML, blockchain, and IoT, CEOs become better able to hit the ground running when making timely, informed strategic decisions. They typically grasp the business side of things, giving them a competitive edge and the impetus for innovation and efficiency across their organization. But in a new digital world, it is a mighty tool that revolutionizes what it means to lead, giving CEOs the confidence and dominion to do so.

Based on a global survey of 1,500 executives, companies led by C.E.O.s with a firm grasp of technology made 26 percent more profits than leaders who entirely offloaded all technology decision-making processes to their I.T. departments. This connection between digital fluency and executive coaching explains why many of the most prominent executive coaching firms have started adding coaches with technology backgrounds to their rosters — to enable their C.E.O.s to become fluent in the digital environments where their companies operate and compete.

How to hone your tech skills:

Pair with executive coaches who specialize in digital transformation to develop a bespoke technology education roadmap
"Tech immersion days" are when you surround yourself with your organization's technology work.
Get involved in technology-focused executive peer networks and programs.
I intend to make a personal board of technology advisors who can navigate complexity in business applications.
Did ya notice the "personal" in that board of advisors because your position is chief technology officer (CTO) of your business (and there are no board dues here)? As a CTO, you are responsible for overseeing the technology strategy and implementation in your company.
You cannot afford to hire a chief technology officer during runaway inflation.
Hold quarterly "deep dive" sessions with your CIO and technology teams to identify key emerging trends.
Discover practical use cases for the tech in hands-on workshops.

Today's most well-informed CEOs spend more than 30% of their professional development time learning about technology, compared with slightly more than 10% a decade ago. Investing here recognizes that reading, writing, and technological proficiency in x (the firm's innovation strategy) must emerge simultaneously. Deciding on a plan, making the investments to implement it, and executing it in the market all rely on the same nested skills of a company.

Skill 2: Emotional and Communicative Intelligence

Emotional intelligence (EI) refers to the ability to understand and manage your own emotions, and to understand and influence the emotions of others. EI and communication skills have risen to the top of desired leadership attributes for a workplace that is becoming more digitally savvy and diverse. An emotionally-theatre-driven actor in a leadership position can be a master of disguise. Yet, the skill set of a successful CEO must understand that a fear-less workplace is safe to talent; thus, if the business is popular and successful, it will not be quickly shattered or shaken.

The pandemic and growing workplace changes have only intensified the importance of these skills. Research by the Yale Center for Emotional Intelligence found that leaders with high EI scores had 20% lower turnover among their direct reports and 17% higher team performance ratings in times of change.

A developmental area in which many executive coaches specialize is building emotional intelligence to enhance the professional relationships of CEOs, improve their efficacy, and better retain talent and collaboration in their spaces. This approach underscores the significance of self-awareness and demonstrates how a coach can be a trusted partner alongside a CEO.

Strategies to strengthen emotional intelligence and communication:

Work with executive coaches steeped in emotional intelligence frameworks
Have 360-degree feedback with facilitated debriefs
They practice meditation to become more aware of their thoughts and feelings.
Create communication expectations for challenging conversations and hard feedback
Listening should become a regular exercise, conducted at various levels of an organization
Do a communication style uniquely yours but one that connects with broad stakeholders

Where CEOs practiced emotional intelligence and open communication, employee engagement scores were 40% higher, and executive team turnover was 25% lower than industry benchmarks. These numbers make clear why executive coaches routinely emphasize these capabilities with senior leaders on their shoulders.