This Is the No. 1 Trait CEOs Need Now
Leaders will make mistakes. Having the ability to make changes is key, says a PwC senior partner.
BY STEPHANIE MEHTA, CEO AND CHIEF CONTENT OFFICER OF MANSUETO VENTURES, PARENT OF INC. AND FAST COMPANY@STEPHANIEMEHTA
JAN 29, 2024
Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.
CEOs are facing a slew of momentous issues right now. We’re trying to understand what disruptive technologies such as generative AI will mean for our businesses; some of us are managing five generations in the workplace; and we’re navigating our companies at a time of political divisiveness, which will be played out in 2024 when citizens of more than 50 countries, representing about half the world’s population, will vote in national elections.
Tim Ryan, senior partner at PricewaterhouseCoopers (PwC) US, says amid all the changes, CEOs will need to surface one trait in particular: “Without a doubt, the number one quality or characteristic that CEOs need to have has to be humility,” Ryan says.
Make no mistake, Ryan isn’t suggesting that now is a time for modesty. Quite the opposite–he feels CEOs need to be bold in addressing challenges, adding, “if you have a bold agenda, by definition you’re willing to make mistakes, and that’s where the humility comes in–to make sure you recognize those mistakes quickly and fix them right away.”
Humility and flexibility go hand in hand
One executive who has made humility a hallmark of his leadership style is Netflix’s Reed Hastings. The former CEO and now chairman of the streaming giant talks about the importance of humility in his book No Rules Rules: Netflix and the Culture of Reinvention, writing: “Humility is important in a leader and role model. When you succeed, speak about it softly, or let others mention it for you. But when you make a mistake, say it clearly and loudly, so that everyone can learn and profit from your errors.” And indeed, he has been public about acknowledging mistakes and course correcting. Amid a tumultuous 2022 for the streaming industry, Netflix added an ad-supported subscription tier after years of resisting such a move. “I have two religions: customer satisfaction and operating income. Everything else is a tactic,” he told The New York Times’s Andrew Ross Sorkin in November 2022. “You’re right to say I didn’t believe in the ad-supported tactic for us. And I was wrong about that.”
The change seems to be paying off for Netflix. It recently reported a record number of paid subscribers, with the ad-supported membership growing to 23 million monthly active users.
Team alignment is key
The idea that CEOs should be humble isn’t a new concept, and in fact, many executives rank humility as one of the most important characteristics of a leader just after being strategic and ethical.
But CEOs shouldn’t assume that their humility alone will translate into organizational change. PwC’s Ryan emphasizes the need for a leadership team that shares the CEO’s commitment to bold action, owning up to mistakes, and trying again. “When you look at the changes we’re talking about, having a team that is aligned is incredibly important,” Ryan says.
Do you agree with Ryan that humility is the number one trait leaders need now? Can organizations change without humility at the top? What other qualities must leaders embrace at this time of change? Write to me at stephaniemehta@mansueto.com. We may share your insights in a future edition of Modern CEO.
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