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A simple litmus test for an executive team's health is to ask members, 'What team are you on?' If they say 'marketing' or 'engineering,' it's a collection of functional heads. A truly aligned team will identify the executive team as their primary team.
To succeed on an executive board, you must shed your functional hat. While you bring expertise from your area (e.g., marketing), your primary responsibility is to consider the health and growth of the entire company. A 'total company' perspective is essential for credibility and impact at this level.
To move beyond platitudes about collaboration, one 5x CEO had his executive team stack-rank one another on their effectiveness as team players. This process created a measurable, accountable system that surfaced hidden friction and spotlighted true team-first leaders.
Effective delegation of decision-making authority is impossible without first ensuring leaders are deeply aligned on organizational objectives. When individuals are empowered to make choices but pull in different directions, the result is a quagmire, not progress. Alignment must precede autonomy.
When diagnosing a failing department, stop looking for tactical issues. The problem is always the leader, full stop. A great leader can turn a mediocre team into a great one, but a mediocre leader will inevitably turn a great team mediocre. Don't waste time; solve the leadership problem first.
A key source of executive team dysfunction is the "empire builder"—a leader who is skilled at managing up but is ineffective in their role and hard on their team. A strong CEO identifies and removes these individuals quickly to maintain a high-performance culture.
A common mistake for new leaders is prioritizing and defending their functional team. The correct approach is to view the executive leadership team as their "first team." This requires prioritizing the overall business, understanding cross-functional needs, and acting as a business leader first.
Aspiring leaders often assume that at the executive level, everyone "gets it" and operates with high maturity. The reality is that C-suites are composed of imperfect people with biases and baggage. Expect the same—or more intense—dysfunctions, not a utopian state of rational business.
A key indicator of a healthy company culture and CEO leadership is the absence of back-channel complaints from the management team to the board. This loyalty stems from the CEO operating with transparency and directness, which prevents the build-up of resentment that leads to mutiny.
An effective leadership assessment measures two distinct axes: the team's alignment on the *importance* of a strategic goal and their agreement on how well it's being *executed*. This dual focus pinpoints misalignment on priorities, not just execution gaps.
Use the formula EV > TV > MEV (Enterprise Value > Team Value > My Value) to guide decisions. Immature leaders optimize for their own team's metrics (TV) at the expense of the company's success (EV). This creates silos. The best leaders always solve for the entire enterprise first.