CEO Blindspots and their Impact on Funding Rounds
2,300 words – 12 min read.
A CEOs influence over the growth of their start-up is greater than any other variable, especially during a time of rapid growth. Yet despite the sleepless nights and personal sacrifices, many have no way to safeguard the business from any aspect of their own approach that might unintentionally be causing problems.
While many prioritise preempting external threats and mitigating internal crisis, very few CEO’s apply the same level of protective diligence when it comes to themselves.
As a result, it’s possible for a CEO to have (and come to develop) aspects to their approach that cause anything from minor irritations through to catastrophic problems, many of which aren’t detected before the fallout becomes very real.
If this is happening and they’re either unaware of the harm they’re causing or don’t know how to fix, it’s termed they have a blindspot.
These blindspots come in all shapes and sizes, to be explored here, but as a generalisation, it’s best to think of CEO blindspots as the Trojan Horse of potential threats to a start-up.
They can be extremely well disguised, are already though the gates, possess enough destructive power to topple the kingdom and usually go unrecognised for what they are until it’s too late.
It’s possible, even for the most senior and well-intentioned CEO to experience these as they can develop and change over time.
It’s also important to appreciate that blindspots for CEO’s come in two types: destructive and constructive.
The former can conceal potential risk and harmful threats, the latter potential opportunity and growth in their skillset that’s untapped.
In this article I‘ll explore how both types often present for CEO’s, the effects they can have in a growing start-up, a few possible pathways to resolve them and an exercise a CEO can use to start identifying any that might be in play for them.
Destructive Blindspots
Typically the most harmful, a few working examples of destructive blindspots would be;
- If a CEO’s communication methods are causing efficiency issues in their team, but they’ve no idea this is the case, their lack of awareness that this problem exists is a blindspot.
- If a CEO struggles with time-management habits that perhaps they’ve tried to change, but nothing’s stuck, their lack of awareness of how to make a lasting change is a blindspot.
- Perhaps a CEO outwardly delegates well, but never fully lets go of control, feeling a need to be involved in too many processes. If they know they do this, but don’t know why or what’s driving their behaviour, we’re in blindspot territory again.
There are many ways these potentially destructive blindspots can present, all highly unique to the individual. But there are also themes. Here are some of the common one’s I’ve found capable of causing considerable and ongoing damage:
- Assumptions the CEO has made which might be allowing unnecessary risks to be in play
- Standards they practice which have a different result than they’re intended to
- Any influence of self-doubt affecting their approach and/or decision making
These are all huge subjects, but to expand on them each a little further..
1. Assumptions
Some widely reported and risky assumptions for a start-up CEO to make with new funding include:
- That people they’ve trusted to deliver so far equates to them being competent going forward and still worthy of that trust
- That others are as invested in their new targets as they are
- That they as the CEO don’t need to adapt or change with this round
- That growing the team means they’ll have the same culture they have now, just bigger
- That what they communicate is received as intended by others
- That any sub-par performance in their team isn’t a threat to their targets
- That they know who their market are now, what they value and what they need
- That they know how they’re perceived by others as the CEO and the effect of that influence
- That they as a CEO can only be an asset, not a threat to the success of this round and moving forward
How to avoid this blindspot
To explore any ‘truths’ we’ve got wrong and more importantly, to avoid creating any more, the solution lies in making sure the echo chamber in our head isn’t the only perspective we’re working from.
This can be challenging for CEO’s as many don’t have people they can be fully open with about their thought processes and who don’t need to see them as a pillar of certainty.
Having people able to help them see different perspectives on their reasoning and thought processes can help significantly and this network is best to evolve as the business does.
2. Standards
When we act in ways that we feel reflect a high standard, we tend to believe that’s how others also see us. Sometimes we’re right, but not always.
One of the most commonplace examples that highlights this is a CEO who consistently turns up early and works late. I’ve found many do this believing they’re showing a solid work ethic, demonstrating commitment or supporting their team by going the extra mile.
They can be right, but sometimes people around them see their behaviour differently – as what’s expected of themselves, or a glimpse into their future. They see someone who solely values work or who will cap their growth by never letting go of control.
Accurate or not, people build their own ideas about who we are and what that will mean for them. That narrative can be very hard to shift and it will play a role in their behaviour, their buy-in to you as the CEO and the company’s targets.
The really dangerous blindspots in a CEO’s standards aren’t found in anything they do which they know is perhaps setting a sub-par example, but in the things they believe are having a positive effect, but in reality, it’s the opposite.
How to avoid this blindspot
The way to avoid setting standards like this is first to be open to the possibility we might not be seen exactly as we think we are and to find evidence either way. The people around us and who know us well are often the best sources of this intel.
Getting honest and transparent feedback for a CEO though, especially if we’re the ones asking for it, can be tricky. There’s obvious conflicts of interests in asking people we employ to ‘rate’ us.
There are ways around this of course: anonymous surveys, personalised NDA protected interviews. Many options, some more effective than others.
The important point here though is that any intel about how a CEO’s standards might be having an effect on the business cannot come from the CEO’s perspective alone to be considered wholly accurate or comprehensive.
3. Self-doubt
Every one of us has some level of self-doubt, it’s part of being human. The question is whether or not that doubt is hamstringing our efforts.
For a CEO, it’s valuable to know the role self-doubt might be playing for them and if it’s preventing or slowing growth in the business as a result.
The first step is to accept that our own doubts about ourselves might be a problem. Even the headspace shift of deciding to address self-doubt can be a huge step towards diminishing its influence.
As boring and cliché as it may sound though, the way to eventually change self-doubt into self-confidence is a personal development journey and best handled by working with a professional.
Constructive Blindspots
Blindspots for a CEO aren’t all doom and gloom, there can be a very valuable side to them as well.
Constructive blindspots are incredibly common and conceal untapped opportunities which can hugely help with a new round. They consist of two types;
- Headroom in our current strengths we haven’t realised we could develop
- New skills we could learn to potentially increase our effectiveness that we’ve no idea we could adopt
1. Unlocking new headroom in current strengths
I’ve found almost every CEO has a strong measure of these, yet they can easily go unrealised.
For instance;
- A CEO might have reasonable negotiation skills, but wants to make sure there are no gaps in that aspect of their approach before any latter-round talks with investors.
- Others may be able to make decisions quickly and confidently, so long as the potential fallout is minimal and they want to know how they can be more comfortable applying this talent to the riskier decisions they know are looming.
- Another example can be a CEO that’s comfortable around developers and their relationships with them are solid, but they don’t know how to expand their rapport building and networking talents to include other personality types or demographics.
Although they can be frustrating, a fantastic aspect to working through blindspots like these is that as they’re building on already familiar skills, the barriers to a CEO’s success often aren’t that great, once they know what’s possible and where to start.
2. Developing new skills
With much leading up to now having hinged on prioritising time and deadline, for many CEO’s the approach of learning new skills from scratch has often understandably been shelved.
This can be a problem though if they habitually remain closed off to questioning if new skills for them are necessary.
If a CEO is used to not developing new skills, they can miss signs that they need to do so and have few or no systems to integrate challenging learning into their day.
In the longer term, this can mean the value they add as a CEO in the business can steadily reduce.
Some examples of when new skillsets might need to be developed;
- Take a CEO who might want to see different behaviours in their team now the business is growing, but being a more operational and data driven thinker, aren’t sure what role they can play to achieve that when the challenge is behavioural, not mechanical.
- Or perhaps with teams now starting to silo, a CEO might need to learn how to delegate not just tasks, but executive decisions for critical considerations and not know how to do so effectively or with certainty.
- Other CEO’s might see the writing on the wall of miscommunication issues as the business becomes a public entity, but haven’t any experience liaising with the media or training in communicating en masse.
These types of constructive blindspots tend to be where most CEO’s focus their time when they consider their own development.
Playing to our strengths has merit of course, but do beware of a very slippery slope here. It’s more inherently comfortable to work on our strengths or what we feel drawn towards, than what we might find confronting.
If you’re considering exploring any blindspots in yourself as part of your development as a CEO, make sure that your systems and any professional support involved can help you address both your constructive and destructive blindspots.
Many CEO’s make use of mentors, coaches, impartial colleagues – no one size fits all, but whatever framework you create, make sure you’re addressing any potentially damaging aspects to your approach as well as developing your strengths.
None of us ever grow or change if we’re only looking at the parts of ourselves we’re comfortable with.
Exercise - detecting our blindspots
Here’s a simple exercise which can be a bit of fun and if you suspect you might have any blindspots in play, it could be a great first step in dealing with them.
You’ll need a pen/paper and the ‘do not disturb’ on for about 5 mins.
Don’t overthink your responses and for best results, try to allow yourself to feel exactly as you think you would in the hypothetical (and extremely unlikely) situation I’m about to describe.
Exercise:
Imagine this:
It’s still your business, but someone else is going to be the CEO instead of you and there’s a few conditions;
- Your replacement must be paid in cash
- They need to be paid annually, in advance
- They’re going to be paid twice what you are
- You have to pay them their salary personally, not from the company coffers
To kick off this arrangement, you’re first going to walk into your bank and withdraw double your annual salary in cold, hard cash and give it to them.
Think about how you might feel striking a deal like that and handing over the funds.
Now ask yourself this question: Given our new round and targets, if there were no more than 3 things that whatever else they bring to the table, this person MUST do better or differently than me as the CEO, what would they be?
Write down the first things you think of and don’t alter or change your answers.
Exercise ends
I’ve heard many responses to that question, some more colourful than others!
If you invested yourself in the exercise though, it’s likely revealed insights into what you might want from yourself as a CEO, but don’t know how to achieve.
I suggest exploring any answers with people you trust, who know you well or have the resources to help because whatever you wrote down, your mind volunteered those exact words for a reason, perhaps many. Trust that there’s value in that.
If you didn’t come up with anything right away, no problem.
Come back to the exercise once you’ve had some time to stew on it. Sometimes with CEO’s I coach, they’ve drawn a blank in the moment and then days later they tell me something cropped up while they’re making coffee or taking a shower.
Hopefully you have some initial conversation fodder and if the approaches discussed here might warrant further conversation, reach out for a chat.
Paul Chapman
Director – Chapman CEO Coaching PTY LTD, Melbourne, Australia.
paul@chapmanceocoaching.com
About the author
Paul Chapman is a 43 year old Londoner living in Melbourne with his family and the Owner and Director of Chapman CEO Coaching. He’s a former CEO with a background in behavioural psychology and psychodynamic coaching.
Having founded and exited his own ventures, he now personally coaches other CEO’s.
Paul’s profile, contact details and website may be viewed here.
Connect with him on LinkedIn here.
Disclaimer
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