Seven things that surprise new CEOs

Here’s a treat for all Professor Michael Porter fans. Porter’s new book On Competition is just out (Oct 2008 Harvard Press). This book is a collection of Porter’s most influential articles from HBR, and new work on health care, philanthropy, social responsibility and leadership. The portion on advice for new CEOs, co-authored by HBS faculty Jay W. Lorsch and Nitin Nohria, who look at common surprises faced by new CEOs. Porter’s most influential article (1979) How Competitive Forces Shape Strategy launched a business management revolution among academics and practitioners.

The article warns new CEOs to be acutely aware of the environment and people, and suggests ways of avoiding common pitfalls. He says that most new chief executives are taken aback by unfamiliar new roles, time and information limitations and altered professional relationships.

The seven surprises are:
Surprise One: You Can't Run the Company
Surprise Two: Giving Orders is Very Costly
Surprise Three: It Is Hard To Know What Is Really
Surprise Four: You Are Always Sending A Message
Surprise Five: You Are Not The Boss
Surprise Six: Pleasing Shareholders Is Not The
Surprise Seven: You Are Still Only Human

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