When an organization recruits a CEO, it makes an investment in the future that will hopefully pay off. That's why it's important to monitor executive performance over time to asses whether they have contributed to the overall success of the organization. To help determine what a long-term gameplan means for CEO status, the Harvard Business Review ranked the top 100 chief executives based on their 'long-term' value.
The source describes the top executive in this list, Jeff Bezos of Amazon, as a business leader with an overarching vision for his company. Some of the other CEOs on the list include Hugh Grant of Monsanto, Howard Schultz of Starbucks and Bob Iger of Disney.
However, Adi Ignatius writes that despite all of the things these CEOs have in common, it's most important to think about what Bezos' place at the top means for a CEO's long-term strategy.
"Here's a CEO who has frequently underperformed in the short term while continuing to make big bets on the future," writes Ignatius. "Amazon often reports quarterly losses, even as sales continue to rise. And though the company is subject, like many firms, to dramatic share-price swings, Amazon and Bezos have a long-term track record of delivering shareholder value that is second to none."
While a business might see similar ups and downs in its own performance, an end result that brings earnings back for investors will help prove viability and demonstrate stability. Over time, this type of approach will give shareholders more faith in "out-of-the-box" thinking.
Use an executive search firm to find candidates with the management skills to create a more comprehensive plan of attack.
Finding people is easy, but finding the RIGHT people is not. YES Partners helps companies FIND the right people – for all company functions, across many industries and globally.
