Leading with Clarity: Why CEOs Need a Vision and What To Do If You Don’t Have One

The executive team was gathered offsite, anticipating the session's start. The objective was clear: Align On the Future.

The CEO started the session by providing a detailed financial review of the last year, followed by a list of issues with the product and the customers he felt were in trouble. 

After the one-hour CEO kickoff, the team was to have a facilitated discussion about big themes for the next 36-60 months.

One of the executive team members asked, "How can we decide on the future when all you have told us about is the past?"

The story is fictional. However, when planning strategic offsites with CEO's, I often encounter a lack of or an inability to articulate the vision clearly. Our initial conversations anchor themselves on tactical issues.

Though plans to address issues are essential, they do not provide direction or inspiration for the future. A clear and concise vision of the future is critical.

Why is vision so important, and why are strategic offsites the right place to reinforce the vision?

More on that below, but first:

Quote I love:

"If you don't know where you are going, any road will take you there." Cheshire Cat from Alice in Wonderland.

If strategy is about making deliberate choices about what you will and won't do, vision provides the context to know which options are best. Without clear direction, hope and luck become your tour guides. 

As Covey stated, start with the end in mind.

A Coaching Moment:

Pre-planning is the secret ingredient of successful strategy offsites. The quality of the work done before you are in the room will determine the quality of the outcomes once the session is complete. 

My strategy is to think of these meetings as a funnel. 

Start with broad, context-setting topics, like vision, and work toward the narrow "what, by who, by when." Setting context at the beginning provides structure to the rest of the discussion.

Working with a very entrepreneurial leadership team in a fast-moving company over a two-day strategy session, I witnessed the power of an eloquently delivered vision and how it shaped the rest of the meeting. 

During the pre-interview stage, all the executives expressed the need for alignment. The prevailing feeling was that they were all swamped but unproductive.

There was clear evidence that they were all busy, but they were not being productive. One of the executives shared an analogy: "We are running incredibly fast on the spot; if we knew where we were going, we could run in that direction."

After the CEO's presentation, there was an audible and collective sigh in the room, and the executive team took over, declaring, "Ah, I see it! OK, this is what we need to do, and this is what we should stop doing."

The creative energy in the room soared, discussions were electric, and participation was very high.

When a decision was required, it was tested against the vision to determine its resonance. The productive conflict was about "what should be done and how," not "who was right."

The power of vision for that executive team was evident.

The Importance of a Vision from the CEO to Lead Off Strategy Offsite

The business environment is changing rapidly, and it is more important than ever for CEOs to have a clear and compelling vision for their companies. 

The vision is the guiding star for executive teams to set strategy and plans. 

There are three specific reasons why a CEO's vision is so important:

It provides direction and focus.

A clear vision provides the guardrails when making difficult decisions and creating strategy. Strategy is inherently uncertain. The team looks at the options in the context of the vision to determine the best choices that provide the best odds for success. 

At the corporate strategy offsite, the vision should be posted on the wall as a constant reminder of the context. Outcomes are tested against the vision.

After the offsite, when the vision and strategy are delivered to employees for execution, they will understand what the company is trying to achieve and how they can contribute to its success. 

Employees will be more motivated and productive when they know what they are working towards.

In one of my favourite books, "Built to Last," Jim Collins unequivocally states that the companies that sustain performance have a clear and compelling vision that guides strategy, engages employees, and steers the business through uncertainty.

It creates a sense of unity.

A well-understood vision creates unity among the business units and corporate service teams required to deliver it. Instead of fighting for resources, leaders collaborate on the best way to achieve the objective and allocate scarce resources.

A common goal amongst executives will break down silos and foster collaboration. It shifts the conversation from being about "who" to being about "what and how." When the executive team trusts each other and is aligned, business velocity increases, and costs go down.

During strategic offsites, conversations must focus on the collective method of achieving the desired outcome. Executives are each other's "First Team," not representatives of their division. The shared vision unifies the "First Team."

In "Leaders Eat Last," author Simon Sinek emphasizes the importance of visionary leadership in fostering a culture of trust and collaboration. Sinek's insights underscore how a shared vision creates a sense of unity among team members and enables them to pull together toward common goals.

It inspires innovation.

A good vision is usually out of reach for the business today. If the reaction to the vision is a collective "no problem," it might be time to stretch further. 

The push into the unknown inspires creativity and new ideas. A clear vision channels this powerful energy in a specific direction. When the executive team knows what the company is trying to achieve, they are more likely to take risks and try new things, knowing it is pursuing a lofty objective backed by senior leadership.

As Christensen states in The Innovators Dilemma: "The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption."

The CEO's vision needs to shake a section of the business loose to pursue the next great innovation that will sustain the company into the future while the rest of the business focuses on what is necessary to serve the existing customers and employees.

With a clear and challenging vision, the business will evolve.

So, what should you do if the business needs a clear vision?

First, you can start by reflecting on your values and beliefs. What do you believe is essential in life and business? Once you have a good understanding of your values, you can start developing a vision for your company that is aligned with them.

Second, you can talk to your employees and customers. What do they see as the company's strengths and weaknesses? What are their hopes and dreams for the future? 

Listening to your employees and customers can help you better understand their wants and needs, leading to a relevant and inspiring vision for those critical stakeholders.

Third, observe trends in the industry. How are consumption habits, demographics, and political or financial trends shifting? Any time there is change, there is opportunity, and change is a constant. Your vision should be a hypothesis about how to benefit from change.

Finally, you can seek a mentor or coach to help you develop your vision. A mentor or coach can provide you with support and guidance and help you stay on track.

Having a clear and compelling vision is essential for any CEO who wants to lead their company to success. Developing and communicating a vision to your employees can create a more focused, motivated, and innovative workforce.