Less Lonely at the Top: Where Can Today’s CEOs Find Support?

Chief executives contend with business environments characterised by globalisation, new technology and the watchful presence of investors, the media, regulators and government, which ensures that scrutiny, accountability and responsibility are ever-present. The decisions get bigger and the consequences of failure become more profound, as one chief executive said: "You know a lot of things that are secret and the number of people you can confide in is very few. Not to be lonely in the role is almost impossible."

Worryingly for businesses, loneliness can have a negative impact on executive performance. A Harvard Business Review highlighted feelings of isolation can hinder a chief executive's abilities, reporting that 61% of CEOs believed it impeded their performance.

Based on conversations with our network of chief executives, chairmen and others, we examine the various avenues to which a chief executive can turn and how those relationships can be of support.

Chairman

Few relationships at the top of a company are as important as that between the chief executive and the chairman. As well as holding the chief executive’s performance to account, inherent in the chairman's role is a requirement to be a counsellor, confidant and coach, providing an additional channel of support and guidance as appropriate.

One chairman said:

"If I bring a particular problem or concern to my chair, I have to be confident he is invested in helping me to solve the problem, rather than apportion blame," commented one chief executive.

Non-Executive Directors

Chief executives typically seek out individual non-executive directors for specific rather than general advice.

"They can help advise on strategy, but they are also there to assess and investigate whether I'm adopting the right strategy. This tension prevents a close professional relationship from ever developing," said one chief executive.

In order to strengthen the relationship and build trust, many chief executives make a point of meeting each of the non-executives individually and informally throughout the year.

Executive Directors

The first person most of us turn to for help with a work-related problem is a trusted colleague; the same can be true for chief executives. One CEO pointed to a strong relationship with his finance director: "My most significant and closest working relationship is with my finance director. Only he knows what it's like at the coalface and understands the intricacies of the challenges we are facing."

The HR director can be a useful sounding board, as one chair commented: "They are probably the only person on the executive committee who doesn't want the CEO's job - they can sit there, be observant and give the chief executive the lie of the land and tell them when they're being obnoxious." One FTSE 100 HR director described his role as: "The CEO's confidant and the conscience of the company."

Mentors and Coaches

The vast majority of chief executives we interviewed highlighted the benefit of two specific external relationships: mentors and executive coaches. "The fact they are far removed from the business means they can truly bring a fresh perspective. It also means you are restricted to talking about scenarios, behaviours and concepts as opposed to specific business challenges," said one chief executive.

For some business leaders, being mentored has become a critical part of their executive development. Chief executives we interviewed spoke positively of having a range of informal mentors and promoters throughout their career - typically a senior figure in the business who has encouraged their development and promotion.

"It's incredibly reassuring to be able to tap the thoughts of someone you hugely admire and who has been through many of the same challenges you have faced and come out the other side," said one CEO.

One former chief executive and current mentor said:

"As mentors, we have sat in the chief executive's seat, and we know there are big gaps in their knowledge, just like there was in ours. You've got there because you're good at something, now you’re expected to be good at everything."

To address any adversities associated with isolation in the job, leaders need to develop the relationships that works best for them. By leveraging support systems, CEOs can navigate the complexities of their roles more effectively, enhancing their performance and wellbeing in the process.

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