The Biggest Mistake of a CEO / by Alexander Lyadov

When I became CEO in the past, I, of course, made mistakes.

If I had to rank them, which one was the most important?

It was the delay in addressing the problem of unconscious ignorance.

No matter how long a manager has worked in their previous role, they’re usually not ready for the scope and responsibility of being a CEO.

On the organizational chart, the career steps look equal. But it's essentially an exponential function, meaning the larger the value, the faster it grows.

A new CEO inevitably steps into the unknown with one foot.

It’s one thing if a deckhand or a boatswain makes a mistake, and quite another if the captain does—especially when Poseidon unleashes a storm on the ship. Mistakes are inevitable, and each one can be fatal.

Gaining experience on your own is an unreliable strategy—it’s expensive and slow. It’s more effective to bring in those who’ve already been there and done that.

In a modern company, this person is an advisor; in a Turkic village, it’s the aksakal—literally "white-beard," essentially a wise man. It’s not enough to go through a lot and accumulate experience—you have to integrate it too.

The advisor’s role is to improve the CEO’s judgment by highlighting risks and opportunities the CEO doesn’t even know exist.

When Don Corleone made his son Michael the head of the mafia clan, he kept offering golden advice on who and how would betray him.

If I could speak to myself as a CEO in 2001 and 2008, I’d say:

"First, find the person (or people) who will strengthen your decisions a hundredfold."

Sincerely yours,

-Alexander


About me:
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

How can I help you?
If you've long been trying to understand what is limiting you and/or your business and how to finally give important changes a push, then The Catalyst Session is designed specifically for you. Book it here.