What If Some CEOs Are Idiots?

Buried in The Wall Street Journal is a summary of the recent study done by management research firm ExecuNet Inc. The core is that CEOs and the people who work for them directly often do not see the world of work at their companies in the same way.

“Rank-and-file employees often complain that CEOs don’t understand what motivates them. It turns out, CEOs aren’t much better at naming what motivates their “C-level” direct reports, either,” the WSJ writes in its summary. “CEOs often hear what they want to hear rather than what really is on the minds of their subordinates,” said Mark Anderson, president of ExecuNet. “CEOs think of guiding the ship as their purview.”

Most of the trouble between CEOs and their subordinates is blamed on poor communications between the two. That is probably true in some cases. As captain of the ship, what obligation does he have to tell anyone where the ship will sail–perhaps not even to his board members?

What this study and others like it never take into account is the possibility of a difference in the IQ’s of CEOs and their “direct reports .” The problem with communication may not be lack of communication skills or a lack of a desire to communicate. It may be because a CEO is smarter than the people who work for them. He or she understands goals and tactics better because they are more well-educated or understand the bigger strategic picture better than those they employ.

The other alternative, if intelligence is critical to communication between senior officers and their CEOs, is that the chief executive is dumber than their employees. CEOs would never admit that possibility because they cannot. The CEO’s role is based on superior intelligence, in some large part. Boards will not admit it because they choose CEOs. Recruiters will not accept the possibility because they are often rewarded for their selection of chief executives, or the advice they give to boards about selections.

A large number of American companies promote from within. The current CEO has a major role in the choice of his successor. The board probably knows that heir apparent. He may be the hardest worker among top management. He may be the best operator or the best at taking and carrying out orders. But, he may not be very smart.

Douglas A. McIntyre