How to Become an Exceptional CEO: Navigating the Hard Things

Author

The Human's Codebook
March 13, 2025

1. Accept the Struggle:

  • Leadership is difficult—embrace it.

  • ExpHow to Become an Exceptional CEO: Navigating the Hard Thingsect impossible choices: layoffs, firings, company pivots.

  • Success and failure rest entirely on your shoulders; be prepared for constant pressure.

2. Don't Face Challenges Alone:

  • Share your challenges openly with your team.

  • Transparency builds trust and motivates collective action.

  • Example: Ben Horowitz openly told his team about company struggles, inspiring them to fight harder and save the company.

3. Creativity Under Pressure:

  • When traditional paths close, get innovative.

  • Horowitz raised crucial funds by taking his struggling company public during a crisis.

  • Use creative thinking to rewrite the rules and find unconventional solutions.

4. Master Your Mindset:

  • Expect loneliness, stress, and self-doubt.

  • Focus intensely on solutions rather than the problems.

  • Think like a race car driver: keep your eyes forward, not on potential crashes.

5. Communicate Bad News Clearly and Quickly:

  • Delaying or hiding bad news destroys employee trust.

  • Early, honest communication shifts focus to quick problem-solving.

  • Problems can only be solved effectively in an atmosphere of openness and trust.

6. Conduct Layoffs with Integrity:

  • Be swift and transparent to minimize uncertainty.

  • Clearly state why layoffs are necessary; accept responsibility publicly.

  • Provide fair severance packages; maintain respect and morale within your organization.

7. Handle Executive Firings with Care:

  • Take full accountability for your hiring mistakes.

  • Conduct a root cause analysis and share it with your board.

  • Preserve respect and dignity of outgoing executives to protect morale and organizational stability.

8. Invest in Your People:

  • Your employees are more important than products or profits.

  • Build a robust HR department to identify unseen issues quickly.

  • Provide functional and role-specific training to equip your team for success.

9. Prioritize Strengths in Hiring:

  • Choose candidates based on their greatest strengths, not minor weaknesses.

  • Imperfections are common; focus on unique talent and potential.

  • Example: Mark Cranny had an abrasive personality but was exceptional at sales, proving highly valuable despite minor flaws.

10. Match Executive Experience to Company Size:

  • Ensure the executive's experience aligns with your company's current stage and size.

  • Executives from larger firms may struggle in smaller environments and vice versa.

  • Align expectations and skills to avoid operational mismatches.

11. Eliminate Corporate Politics:

  • Foster a culture that aligns personal ambition with company success.

  • Implement clear processes and structured evaluations to reduce internal competition and manipulation.

  • Clear roles and accountability empower teams to perform without distraction.

12. Adapt Your Leadership Style:

  • Recognize when to be a "peacetime" or "wartime" CEO.

  • Peacetime CEOs encourage creativity, innovation, and calculated risks.

  • Wartime CEOs make decisive, bold moves to ensure company survival during crises.

  • Example: Intel's Andy Grove decisively shifted company focus during intense competition.

13. Embrace Discomfort for Growth:

  • CEO greatness isn't innate—it's developed by consistently facing and overcoming uncomfortable tasks.

  • Practice making difficult decisions, giving feedback, and accepting responsibility openly.

  • Develop the courage and resilience needed to thrive under constant pressure.

Final Thought: Leadership will never be easy, but mastering the hard things is what creates lasting greatness. Embrace challenges openly, invest deeply in your people, and stay resilient. This approach transforms struggles into your greatest opportunities for growth and success.