The Speech All New CEOs Should Give

A new CEO’s first speech should not be a performance. It should be a promise.

Employees do not expect a new leader to arrive knowing every customer, process, machine, or unwritten rule. But they do want to know what kind of leader has arrived. Will this person listen? Will difficult subjects be discussed honestly? Will people be treated fairly? And when the pressure rises, what will matter most?

The first address is an opportunity to answer those questions. It establishes expectations not only for the organization, but also for the CEO.

I learned the importance of that opportunity during a business simulation course.

A CEO Speech That Missed the Moment

In the simulation, we were given a computer terminal, an inbox, and a walkie-talkie. Our fictional company, Acme Widget, was in trouble. A team of psychologists observed us throughout a pressure-filled day, watching for leadership and the other skills needed to manage a crisis.

The participant selected to serve as CEO was an up-and-coming executive at a Fortune 100 company. His employer clearly considered him someone with potential.

At the beginning of the simulation, the psychologists asked him to give his motivational speech.

He stood before the team and said, in effect: Our job is to grow revenue faster than expenses. Now get to work.

That was it.

It will not surprise you to hear that Acme Widget did not survive the simulated crisis. Messages flew, problems multiplied, and the team came apart.

I thought then—and still believe—that a better opening message could have changed the way the group worked together.

Financial performance matters, of course. But telling people to improve the numbers does not show them how they should behave when the work becomes difficult. A CEO’s first speech should establish that foundation.

The CEO Speech He Should Have Given

This is the speech I give when I take over companies as an interim president.

My name is Walter, and I will be CEO of this company.

I am not an expert in many of the aspects of the business, so I hope you will be open with me when I ask questions. I am not probing to look for weaknesses in you or your colleagues but to see how we are doing things now and how we might look for improvements.

My interest is in processes, not personalities. I am not here to hurt anyone, just to see that we all work together to further the corporate fortunes.

I have a few expectations. I’d like to share them with you now.

1. Safety Comes First

Whether you work with machinery, drive on company business, lift boxes, or spend the day at a desk, you should be able to return home safely at the end of the workday.

I will ask specific questions about safety. Not for money reasons or for insurance, but because we are all in this together, and we can’t promote that feeling if someone is risking his or her hands in the factory or a sore back in the filing room. Please be open as to how this concern might be addressed.

2. Everyone Deserves Respect

This expectation is one you can aim at me. You should expect that I treat you with respect at all times. This means no shouting, yelling, or baiting.

I will expect the same treatment in return, and I expect those courtesies to extend throughout the company, regardless of title or position.

That does not mean the workplace must become stiff or humorless. I like to hear laughter and conversation. It does mean that even when we disagree — and we will disagree — we remain respectful.

3. Integrity Means Telling the Truth

You can expect me to tell the truth, and I will expect the same.

Telling the truth is very freeing. The truth has no politics and no taboo subjects. If it will make the company do better, it should be spoken about candidly.

By the way, when I ask questions of people who work here, I keep their impressions to myself. It doesn’t do anyone any good for me to say, ‘Susie thinks our marketing is a disaster.’ However, after speaking to Susie, I might talk to the people in marketing and say, ‘When was the last time you gave a presentation on the latest campaign?’

Oh, and a commitment to telling the truth is not the same as giving out all information. You do not have the right to know everyone’s salary information or when the big merger is going to be announced. Some information is kept appropriately hidden, when it needs to be.

But we should never use confidentiality as an excuse to avoid a difficult business truth.

4. Teamwork Includes Asking for Help

If you need help, ask for it. No one should feel that his or her position is in danger when he or she feels a better job can be done with a little help.

You should also provide help when you can and when it would help others do a better job. No doubt this means that you will be making extra efforts and personal sacrifices. Those efforts will be recognized by the people around you and may eventually even lead to material improvements in your situation.

But at a minimum, you will realize that some days you, too, need help. Having provided it, you will be gratified when your colleagues step up to do the same.

A strong organization is not one in which everyone struggles alone. It is one in which people can rely on one another without keeping score.

Those are my expectations: safety, respect, integrity, and teamwork.

They apply to everyone in the company, including me. If you believe we are falling short, I want you to tell me.

My door is open. Thank you for listening.

Why This CEO Speech Matters

A new CEO does not earn trust by announcing a list of ambitions. Trust begins when employees understand what the leader expects, and what they can expect from the leader in return.

This speech does not promise that every decision will be popular or that there will never be conflict. Leadership sometimes requires difficult decisions, particularly during a turnaround or transition.

It does promise that the organization will address those difficulties with clear standards:

• People will not be asked to sacrifice their safety.
• Disagreement will not become disrespect.
• Difficult truths will not be buried.
• Asking for help will not be treated as failure.

Those commitments create the conditions in which people can focus on the work ahead.

Revenue, expenses, strategy, and execution all matter. But before a CEO asks an organization to deliver results, that leader should explain how everyone, including the CEO, will conduct themselves while pursuing them.

Read More

• Is an Interim or Fractional CEO a Good Fit for My Company?
• When the CEO Quits: How to Prepare and Respond
• Match With a Fractional CEO for Strategy and Execution