The McKinsey article (Nov 24), "Questions every chief executive should be able to answer," outlines an 18-question checklist that CEOs can use to guide their decision-making. This checklist, developed from interviews with over 70 successful CEOs, is structured around six key areas of responsibility: setting direction, aligning the organization, mobilizing through leaders, engaging the board, connecting with stakeholders, and managing personal effectiveness.

Setting Direction:

The first step for any successful leader is to set a clear and ambitious vision. This vision should not simply aim for incremental gains, but rather reframe the definition of success for the entire organization. For example, Mastercard, under Ajay Banga, aimed not to "win in payments" but to wage a "war on cash," acknowledging that most global retail transactions were still cash-based at the time. This bold approach spurred the company to new heights.

Once a vision is in place, a strategy must be developed to achieve it. CEOs should identify a short list of impactful strategic moves—such as mergers and acquisitions, capital investment, productivity improvements, and product differentiation—that can significantly outpace competitors. Roberto Setúbal, former CEO of Banco Itaú Unibanco, employed this strategy to transform the bank from a retail-only operation into a Latin American leader in corporate and investment banking. This involved aggressive expansion, cost-cutting measures, a cultural overhaul, and a major merger.

Aligning the Organization:

Achieving strategic goals requires a strong and adaptable organization. CEOs should view culture as a critical lever for performance improvement, targeting one or two key cultural shifts during their tenure. Paul O'Neill, former CEO of Alcoa, famously prioritized safety culture, which led to significant performance gains.

Organizational design also plays a vital role. The most successful companies achieve a balance of stability and agility. This means maintaining a strong core structure while incorporating elements of flexibility. For example, Intuit CEO Brad Smith organizes his company around customer segments and problems, providing stability, but also employs small, agile teams to address strategic questions quickly.

Talent management is another critical aspect of organizational alignment. CEOs should identify the roles that create the most value and ensure that they are filled with the right people. Stephen Schwarzman, CEO of Blackstone, meticulously analyzes portfolio companies to identify these key roles and ensures they have robust succession plans.

Mobilizing Through Leaders:

Effective leadership extends beyond the CEO's office. Building a high-performing senior team is essential. This team should not just be a collection of individual stars, but a cohesive unit with complementary skills and a shared commitment to the company's success.

Engaging the Board:

CEOs should view the board not as a supervisory body, but as a valuable resource and partner. This requires building trust through transparency.

CEOs should also proactively educate board members about the business and ensure that the board composition reflects the company's strategic direction. Board meetings should go beyond fiduciary matters and include discussions on strategy, organizational health, and talent.

Connecting with Stakeholders:

CEOs must understand and connect with external stakeholders, including customers, investors, and the media. This involves understanding their needs and perspectives, even if they differ from the company's. Reed Hastings, CEO of Netflix, points out the importance of understanding the media's desire to be both truth tellers and entertainers.

Building resilience is also crucial. Companies should proactively prepare for potential crises by conducting stress tests and developing contingency plans. Jim Owens, former CEO of Caterpillar, required his divisions to develop plans for navigating a severe recession, which proved invaluable when the 2008 financial crisis hit.

Managing Personal Effectiveness:

Finally, CEOs must manage their own time and energy effectively. They should focus on the tasks that only they can do and delegate the rest. A strong support system, including a talented chief of staff, can help CEOs manage their workload and avoid burnout.

Leading Authentically

Authenticity is essential for effective leadership. However, the best CEOs also recognize the need for continuous improvement. They actively seek feedback, work with coaches, and engage in self-reflection to refine their leadership style. Above all, they prioritize humility and recognize that their success is intertwined with the success of others.

The 18-question checklist serves as a valuable guide for CEOs seeking to enhance their leadership effectiveness. By focusing on these key areas of responsibility and consistently evaluating their performance, CEOs can navigate their companies towards greater success.