How the Best CEOs Invest Amid Turbulence

I’ve said this many times:  Strategy is a journey that rarely goes as planned.

Further, achieving objectives – your vision – requires actively aligning and realigning strategy and operations. And it’s not easy, particularly in challenging times. In fact, this critical alignment is the theme of my book, Charting the Course. 

A worsening outlook with broad negative consequences puts defensive measures at the top of executive agendas. They’re needed to mitigate risk and preserve capital, revenue, and cash.

Yet strategy always needs a mix of current and forward-facing actions, (see related article here.)

Rather than heading to the bunkers, the CEOs I advise invest. Strategically.  

Priorities remain relevant

Sure: the executives are taking difficult decisions to survive the current situation. Simultaneously, they are proactively freeing up resources to position the company for a promising future. Their actions are measured, time-bound, and directly linked to agreed strategic priorities. For the most part, their priorities remain relevant to achieve the vision.

Yet what they’ll do – the actions needed – to execute on the plan must change. It’s about strategic agility.

Deliver lasting results

In another post (here,) I highlighted a few CEO stories. Perhaps your situation is similar. Here are five investments skilled CEOs are making right now to deliver lasting results.

• Standing up an innovation team. Equipped with a clear mandate and resources to get it done, the team also has a specific, near-term deadline to deliver results. The team is tasked with expanding the range of ideas, implementing prototypes quickly, and testing the validity or impact of the solutions. The senior executive is enhancing the outcome by investing in both internal and external experts to contribute.

• Hiring a Chief Growth Officer. This addition to the C-suite is experienced, external, and focused explicitly on creating new opportunities for the future and rapid revenue for today. Their bonus depends on results, even as the organization takes specific action to integrate the “newbie” and set them up for success.

• Purchasing critical assets. To shore up a known vulnerability and unlock the potential to pursue something entirely different, this CEO is actively “finding the money” to make targeted investments. They’ve got their eye on the opportunities emerging from today’s situation, even as they cut back dramatically in response to sudden loss of contracts.

• Elevating strategic capability and capacity. In tough times, it’s easy to get mired in the day-to-day. These mid-sized CEOs repeatedly ask key strategic questions like: What’s the real issue here? What if we don’t take that path? What else? Exploring strategic questions with their teams ensures sufficient attention is paid to the future, even as their team executes at the operational level.^[1] 

• Locking in different types of collaborative relationships. Uncertain times can breed strange bedfellows. Pursue relationships that accelerate trust. Savvy executives look for those who share a core purpose or face a common and critical foe. They reframe the question: Why not partner or collaborate? One CEO deliberately revealed a specific vulnerability and its broader implications for their sometimes competitor. Now, they’re collaborating to unlock new options for mutual gain.

Investment benefits the entire team

In good times and bad, the most effective CEOs also rely on strategic advisors. A skilled strategic advisor places the situation into the appropriate context and quickly surfaces the broader implications of decisions. Investing in an advisor, the CEO gains a strategic confidante that guides them to accelerate performance, no matter the circumstance. And they know that such investment benefits the entire team.

Skilled CEOs routinely inspire their teams to face forward, even as they address immediate challenges. Importantly, they signal confidence and commitment to both their people and business. In challenging circumstances, forward-thinking CEOs invest strategically.

[1] “Strategy occurs on three levels: Enterprise, Operational, and Tactical” (T. Rethore & C. Langreney, Charting the Course: CEO Tools to Align Strategy & Operations, 2021, p. 97.) To dive deeper, see the Strategic Planning© chapter (pp97-106)

For more, see related post: When the Going Gets Tough, The Best CEOs Invest