The CEO’s primary responsibility is to do what’s best for the enterprise, not what’s best for shareholders or employees.

The process begins with real-time, accurate assumptions about markets, customers and competition. What’s external to the organization forms the basis for decisions that shape its internal behaviors and practices as a whole. (Peter Drucker)

Many CEOs still delegate the supremely important first step that sets all business activities in motion to functional leaders. No functional leader possesses the scope, vision or span of authority to do what only the CEO can do: Reconcile the internal organization with external realities.

Success in everything a company does–meeting growth and market share targets, capital projects, technology, innovation and new products, acquisitions, joint ventures, talent selection–is dependent on real-time, accurate assumptions about the external environment.

Because Outside is where an organization cashes in. Get that wrong out of the gate, and costs will outpace growth. Translation: Guaranteed trouble ahead for shareholders and employees.


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