By Jonathan H. Westover, PhD
Abstract: This article discusses research-supported strategies that effective CEOs employ to build confidence in their leadership abilities early in their tenure. It explores how CEOs can gain trust through transparency and accountability by being candid about opportunities and challenges and taking responsibility for successes and failures. The article also examines how CEOs build confidence by communicating a clear and achievable strategic vision supported by frequent dialogue and explanation of their plans and rationale for decisions. In addition, it looks at how delivering quick wins on priority issues through short-term goals and tackling pressing problems demonstrates a CEO's decisiveness. The article analyzes how CEOs earn trust through visible, hands-on leadership by spending time understanding frontline work. Finally, it discusses how CEOs lay the foundation for long-term confidence by championing an inclusive, values-driven culture and developing future leaders to ensure the sustainable success of the organization beyond their tenure.
As an organizational leadership consultant and researcher, one of the most common challenges I have seen CEOs face is building confidence in their leadership abilities, especially early in their tenure. While experience and credentials are important, they do not necessarily translate into trusted leadership.
Today we will explore the research-supported strategies the most effective CEOs employ to gain the confidence and trust of their key stakeholders.
Earning Trust Through Transparency and Accountability
One of the biggest predictors of confidence in a leader is perceived trustworthiness (Mayer et al., 1995). CEOs must demonstrate from day one that they are reliable, transparent, and accountable for results. This builds stakeholders' confidence that the CEO has the integrity and competence to navigate challenges.
A powerful way to demonstrate transparency is by being candid about opportunities and threats, without sugar-coating problems (Sisco et al., 2010). For example, one hospital CEO I worked with held regular "State of the Organization" town halls where clinical and financial updates were shared openly, including areas where performance was lagging. Employees respected that the CEO "told it like it is" and didn't try to hide issues.
CEOs also build trust by owning both successes and failures. For example, when a manufacturing CEO's new product launch was delayed due to supply chain issues, he didn't pass blame but took full responsibility for ensuring the problems were fixed. His direct reports knew that he had their backs but also wanted to be made aware of risks early. This accountability gave confidence that problems would be addressed.
Setting and Communicating a Clear Strategic Vision
Beyond addressing current realities, stakeholders want to believe in a leader's vision for positive change (Berson et al., 2001). An compelling vision inspires confidence that the CEO knows where the organization needs to go.
Effective visions are ambitious yet achievable. The CEO of a tech startup clearly outlined his 3-5 year plan to become the market leader through targeted acquisitions and product expansion. While bold, his roadmap was backed by thorough market research and financial modeling, giving confidence it was realistic.
A vision also comes to life through regular communication. One hospital system CEO held "Fireside Chats" where she could reinforce key strategic initiatives and her rationale for related decisions in a casual, two-way discussion format. These interactions helped clinical and administrative staff understand and buy into her long-term plans.
Leaders build confidence by explaining not just what they want to achieve but also how and why, answering the basic questions of any skeptical observer (Kotter ,2012). With an understandable vision and frequent dialog, stakeholders can believe the CEO is steering the ship in a purposeful direction.
Delivering Quick Wins and Addressing Priority Issues
While long-term visions energize, stakeholders also want to see immediate progress on priority issues through short-term wins (Kouzes & Posner, 2002). New CEOs earn confidence by setting stretch yet achievable 90-day goals and following through.
For example, one technology CEO made customer experience a top priority and launched several initiatives in his first quarter like a new help desk model and a streamlined returns process. Seeing tangible results so quickly built credibility that he was a decisive change agent. Other 90-day targets helped relieve operational bottlenecks or address a looming talent shortage with new recruiting strategies. Short-term actions prove a CEO's ability to accelerate priority work.
Leading by Example with Visible, Hands-on Leadership
Beyond communicating objectives, the most trusted CEOs gain confidence through their visible, hands-on leadership style (Wright et al., 2012). By spending time in divisions and really understanding frontline work, they build rapport with employees and credibility around business realities.
One manufacturing CEO I know led daily production huddles and personally quality-checked a sample from each product run. His hands-on involvement showed pride in operations and a commitment to issues like safety and quality. Staff saw him as "one of us" invested in their success.
Other CEOs spend unscheduled time rounding in clinical units, customer support centers or R&D labs, asking questions to better grasp ongoing work and pain points. Their presence signals priorities and approachability, while immersive experiences strengthen strategies and decision-making. Stakeholders trust that hands-on CEOs truly "get it" when it comes to core business challenges.
Building an Inclusive, Values-Driven Culture
Beyond short-term targets, CEOs lay the foundation for long-term confidence by championing an inclusive, values-driven culture where people can thrive (Baker & O’Malley, 2008). This starts on day one by articulating a clear set of cultural values like integrity, respect or customer-first service.
Values come to life through programs like one technology company CEO's mentoring circles bringing together new hires with senior leaders of different functions and backgrounds. Stakeholders see that diversity and development are truly priorities in action.
Another CEO spearheaded an rotating lunches program requiring all VPs to sit down monthly with a randomly assigned frontline employee. These interactions helped drive understanding across silos while sending a message that every voice matters. When stakeholders experience a culture aligned with espoused values, they have faith the organization is on the right long-term trajectory.
Developing Future Leaders to Ensure Sustainability
Beyond current initiatives, CEOs build confidence by actively growing the next generation of leaders to ensure the organization thrives beyond their tenure (Rothwell, 2010). From day one, effective CEOs establish robust talent review and succession planning processes that identify high potentials and their development needs.
One manufacturing CEO helped new leaders gain exposure by appointing them to industry boards and partnering them with senior external mentors and advisors. Others spearhead structured rotation programs placing high potentials in split roles across functions or business units. When stakeholders see a strong leadership pipeline taking shape, they believe the CEO is serious about sustaining progress.
Conclusion
The most effective CEOs build confidence in their leadership through consistent application of core strategies including transparency and accountability, setting and communicating a clear strategic vision, delivering quick wins while addressing priority issues, visible hands-on leadership, championing an inclusive culture, and developing future leaders. While experience is a factor, confidence ultimately comes down to consistent demonstration of integrity, competence, and an ability to navigate challenges decisively while keeping the organization progressing positively. CEOs who authentically employ these research-backed strategies pave the way for trusted, sustainable leadership.
References
Baker, W. E., & O’Malley, M. (2008). Leading with kindness: How good companies make it add up. https://hbr.org/2008/04/leading-with-kindness-how-good-companies-make-it-add-up
Berson, Y., Shamir, B., Avolio, B. J., & Popper, M. (2001). The relationship between vision strength, leadership style, and context. The Leadership Quarterly, 12(1), 53–73. https://doi.org/10.1016/S1048-9843(01)00064-9
Kotter, J. P. (2012). Leading change. Harvard Business Review Press.
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. The Academy of Management Review, 20(3), 709–734. https://doi.org/10.2307/258792
Rothwell, W. J. (2010). Effective succession planning: Ensuring leadership continuity and building talent from within (4th ed.). AMACOM.
Sisco, H. F., Challagalla, G. N., & Webb, K. S. (2010). A proposed framework of supervisor trustworthiness and empathy. The Journal of Personal Selling & Sales Management, 30(3), 235–250. https://doi.org/10.2753/PSS0885-3134 300303
Wright, T. A., Walton, T. P., Byl, J., & Myatt, G. (2012). The relationship between top management personality and transformational leadership. Journal of Leadership & Organizational Studies, 19(2), 173–180. https://doi.org/10.1177/1548051811435466
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Trust Is the Foundation: How CEOs Build Confidence in Their Leadership. Human Capital Leadership Review, 11(1). doi.org/10.70175/hclreview.2020.11.1.3
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