How to Be a Successful CEO (Chief Executive Officer) of a Fortune 500 Company

Successful CEOs are humble in their outlook but confident in their abilities.

The chief executive officer of a Fortune 500 company -- one of the 500 largest U.S. private and public companies according to "Fortune" magazine rankings -- holds a position of significant prestige and responsibility. Shareholders and owners expect him to run a profitable business and employees depend on him for their livelihood. Therefore, a successful CEO has to be a detail person who obsesses over every operational detail, and he must be a people person who genuinely cares about his employees.

Instructions

1. Take a broad view of your responsibilities as a CEO. Harvard Business School professor Michael Beer told Martha Lagace of HBS Working Knowledge that successful CEOs take a multi-stakeholder view of their companies rather than focusing on just profits and share prices. This means paying attention to employees, customers, suppliers and the community in which you live and work.

2. Treat your employees as assets. Do not treat them as mere numbers on a financial statement, though managing costs is an important part of business management. Layoffs are sometimes unavoidable, but a successful CEO continues to nurture and motivate her employees through a crisis. Continue to invest in training programs, especially in-house employee and management development programs.

3. Communicate honestly and openly. Explain the need for management restructuring actions well in advance so that employees can plan accordingly. "New York Times" columnist David Brooks cites research to state that the stock markets tend to prefer CEOs who provide clear direction for their companies. Author Justin Menkes wrote that the best leaders know how to collaborate and "co-create" success. Be generous in your praise, and let your employees take the credit when things are good.

4. Be organized. This means that every interaction at work should have a purpose. Brooks suggests that attention to detail, diligence and efficiency are more important success factors than even flexibility, warmth and empathy. Menkes believes that successful CEOs know how to find order in chaos. They thrive in a random and frenetic work environment. They are able to discern patterns out of seemingly random events.

5. Remain optimistic. Dream big but always with your eyes wide open. Menkes calls it "realistic optimism." This means that you should always hope for brighter days ahead but adopt concrete measures to deal with the dark days of today. Successful CEOs are like good baseball managers. They know how to keep a team motivated through the losing streaks and focused through the winning streaks.

6. Enjoy what you are doing. This should come easily because, as CEO of a Fortune 500 company, you have fame, fortune and power. If you are miserable all day, find another line of work, take a vacation or do whatever it takes to get back on track.

7. Dare to be different. Successful CEOs are not afraid to take calculated risks, explore new markets and develop new products. Richard Fairbank, founder of Capital One, told Stanford Graduate School of Business News that successful CEOs are passionate about their work and have the "courage to be bold."

References

• Harvard Business School Working Knowledge; Uncompromising Leadership in Tough Times; Martha Lagace; February 2009
• "The New York Times"; In Praise of Dullness; David Brooks; May 2009
• "Harvard Business Review"; Three Traits Every CEO Needs; Justin Menkes; May 2011
• Stanford Graduate School of Business News; Successful CEOs Work With a Passion, Says Fairbank of Capital One; Dave Murphy; November 2007