2024 Pacific Lake Conference: Growth as a CEO
David opened the conversation with an important observation: analysis of dozens of search fund company exits shows that execution is the single biggest variable on company outcomes (as measured by MOIC). It is also the one variable that is completely in the control of the CEO. Successful CEOs share five common traits. Mastering these skills contributes directly to an organization’s performance:
For entrepreneurs, this is good news: CEO performance is within your control. But mastering these five skills requires focus and consistency. All too often, it is easier to follow shiny objects, or believe that the organization will scale if you just work more. Sam and Laura reflected on how they had grown as CEOs by working on these skills.
Sam pointed out how these skills interrelate. For example, in Circle Surrogacy, he found that creating a culture of feedback in building his team was closely aligned with setting and adhering to priorities. When he (and Steuart Botchford) first bought the business, Sam realized that their plans for change outweighed the organization’s ability to absorb those changes, resulting in an unfocused first 12 months at the company. To overcome this, he adopted a "rocks and sand" metaphor with his team, emphasizing the need to focus on the priorities (rocks) ahead of all the other work to be done (sand).
As they discussed the skill of setting and adhering to priorities, Laura described the importance of identifying and focusing on the two objectives that ultimately drive Woven Care’s performance: delivering the best patient outcomes and hiring the best clinicians in the United States. Clarity in setting these priorities has also helped with storytelling and defining purpose throughout the organization. Four years into her journey as a CEO, Laura continues to use daily and weekly tools to hold herself accountable to doing work that meets these objectives.
Lindsey pointed out that it’s not just about knowing what to do; it’s also about identifying and removing roadblocks. This is where willingness to seek and take advice comes in, which David reinforced, referencing Laura’s leadership at Woven Care.
At the end of the conversation, Lindsey asked each of the panelists for a closing thought. Interestingly all three focused on the same theme: great execution is initially hard to create, but once in place, it is an unstoppable market force.
