Three Jumps on the Leadership Ladder

Nobody wakes up at the top of Everest. To put it in business terms, executives don’t start as executives. Or, to quote the great Vince Lombardi, “Leaders are made, not born.”

In recent years, I’ve been asked a bunch of questions about CEOs: where they come from, how to train them, what the most essential qualities are, etc. I have been coaching CEOs for over three decades, and although there is no secret club they all come from, they all seem to take similar paths. I call it the executive leadership ladder, and there are just three steps on it.

Step One: The Five-Star Contributor

CEOs usually start off as a star performer. In other words, they are exceptional at doing something specific. Sales, operations, analytics, finances, people skills, company politics, intellect, hustle, problem solving—something. The position they play can vary, but their personal performance stands out. Compared to their peers, they get more done faster. Their area advances and, over time, they are counted on in ways beyond what their experience allows.

Companies don’t always manage these high performers well, but when they do, they look to give more responsibility to these contributors. So, when the opportunity arises, companies promote them, moving them to step two on the ladder.

Step Two: The Builder/Manager

Not everyone can become a manager, but pretty much all great contributors will get the chance if they work in a growing company.

At this step on the ladder, they are no longer the most talented player in the orchestra but the conductor. They’re not just delivering output through their skill sets but delivering it through someone else’s efforts and building a competency for the company. You’ve likely heard someone say, “Hire people smarter than you.” That is the idea here.

They now must get good at picking talent and getting the most out of people. They are now in charge of a team, not just themselves. They must translate the bigger goals into their area and make them happen. They must develop all the knowledge, behavior, and skills of managing rather than doing.

Then, if they stay around long enough and deliver, they have a chance to reach the final rung of the ladder.

Step Three: The Enterprise Leader

This isn’t just about the CEO title; it’s about being any enterprise leader at the executive level. There are some common traits I have noticed. They learn how to be a proven, mature, macromanager versus a micromanager or nonmanager. Organizational dysfunction, relational drama, and underperformance are some of the signals that an organization is missing an enterprise leader at the top.

Another thing enterprise leaders do is drive value to the owners—stock value if it’s a public company, but growth, health, and financial value no matter what kind of company it is. But how do they do this?

They are also able to see and navigate the competitive landscape at the highest level, like a ship captain who sees the current and coming storms who’s got the courage to say, “Full speed ahead!” when others want to hold back and the wisdom to change course when others say it. 

The enterprise leader develops the ability to rally and organize the crew behind them. They can hold and lead the room, even—and especially—when it’s a divergent room. After all, they’ll be doing cross-department work with people who are new to the company and long-term stakeholders, young star performers, and long-term old heads. Think Abraham Lincoln, Team of Rivals kind of leadership.

I use the construct of five tasks to explain what a senior leader really needs to focus on in today’s world. The idea is to set direction, speed, risk, resources, and culture. This framework allows the enterprise leader to stay high and lead accordingly.

Conclusion

One famous leader said it this way: “Great leaders are remembered not for the power they held but for the leaders they developed, the culture they shaped, and the values they embedded long after they were gone.”

The great leaders, the level five leaders (per Jim Collins), the enterprise leaders eventually make the difference in any organization. Yes, you need a bunch of high performers. But someone must transform all that super-performance into companywide progress. Show me a great company, and I will show you a bunch of enterprise leaders.