So You Want to Be a CEO?
By Suma CM

Someone who has a record of success under adversity—now that’s someone you really want to look at for that top job. —Wade H. Allen, MBA 90, President, Cendea Also see   "Insights from the Top: Fortune 500 CEOs Share Words of Wisdom from the Corner Office" Texas, the McCombs School of Business magazine, Fall/Winter 2004.

177 mccombs alumni (87 of them mbas) list themselves in our alumni directory as chief executive officers. their companies range from tiny shops to large conglomerates. we spoke to a few to get their advice on advancing to the top rung.

Mel Brooks was right: It’s good to be the king. But unless you have direct connections to royalty or a spot on the presidential ballot, the closest you’ll get to that kind of power—the control-over-destiny, buck-stops-here, adoring-staff-and-constituents kind—is the CEO’s chair.

And it’s not just the Carly Fiorinas, Warren Buffetts, Andrea Jungs, and Jeffrey Immelts of the world who have it, either. Every CEO, be it of an international shipping container business or a ten-person local cleaning-service outfit, has some smidgen of control over the world’s commerce, some indefinable ability to take other people to a better place.

Sure, some of them do sit at mahogany desks and drive BMWs and enjoy a few rounds on the green whenever the mood strikes— but that’s just icing on the cake, a reward for a job (hopefully) well done. For most chief execs, it’s the happy confluence of vision and execution—the overarching desire to take a team of people and focus their efforts in a new direction—that makes them get up every morning.

Like any other hard-won achievement, CEO-dom doesn’t usually happen overnight. It’s often a long, difficult slog past various academic and professional milestones (though a college degree helps, the likes of Jobs, Gates, Ellison and Dell would beg to differ). It involves successes and failures—frequently more failures than successes. It also involves incredible accountability: as CEO, you’re responsible for other people’s nest eggs, your employees’ livelihoods, and in post-Sarbanes-Oxley America, even the accuracy of your public financial statements.

Despite the challenges, a number of McCombs alumni have stepped up to the task and chosen to follow that path to the top. In fact, several lead Fortune 500 companies. Jim Mulva, BBA 68, MBA 69, is head of ConocoPhillips; Gerard Arpey, BBA 80, MBA 82, pilots American Airlines and parent company AMR Corporation; Kenneth Jastrow, BBA 69, MBA 71, steers the course for paper products and financial services firm Temple-Inland; and William Johnson, MBA 74, is at the helm of H.J. Heinz.

How did they all do it, and what qualities are most important when it comes to the corner office? We’ve put together a cheat sheet—some tips for top-job aspirants, if you will. Tear it out, stick it to the refrigerator, post it on the bulletin board. Whenever you’re having a rough day at work, take a deep breath, stroll past the office of the big boss, and repeat to yourself: “Someday, I could be CEO.”

Take the Road Well Traveled

If you’re reading this, you probably already have a degree or two from one of the world’s finest institutions. And it’s no coincidence that many CEOs also come from the ranks of marquee companies—top consulting firms or well-respected global enterprises.

Dave Morris, BBA 68, MBA 70, managing partner at executive search firm Heidrick & Struggles, counsels would-be leaders to aim for those jobs early if possible. “People at the beginning of their careers should get a strong ‘letter sweater,’” says Morris. “Try to work at a firm like GE or McKinsey & Company. Why? I know those firms hire the best. I know those people get training. Those firms train people well and help people learn and grow in their careers.”

Don Ochsenreiter, MBA 81, CEO of Burton Golf, did just that. After graduating from McCombs, Ochsenreiter joined the Texas office of McKinsey. “They have some of the brightest people solving problems,” he says. “When I worked in that environment it pushed my thinking to the limit.”

Before ultimately landing the top job at Burton, Ochsenreiter gained operating experience at several small companies, and also completed a stint in Andersen’s strategic services group, working on various restructuring and reengineering projects.

“In consulting, you jump from one industry to another, and the client expects you to become an expert in it overnight. You become an excellent problem solver, and I’ve carried that trait with me wherever I’ve gone,” he says.

Consulting can be an excellent way to continue a business education, agrees Don Patteson, MBA 74, CEO of Sovereign Business Forms, a Houston-based producer of printed forms and stationery. He took a position with Andersen upon receiving his MBA. “We had a variety of clients, and I enjoyed learning about new businesses and how they operated,” he says.

Randall Hogan, MBA 81, CEO of Pentair Inc., a diversified company whose products range from power tools to electronic enclosures, spent six years at McKinsey in Texas before taking a position at GE’s corporate office in Connecticut. “At McKinsey you learn how to think about business problems and strategy—to be analytical but also insightful,” he explains. “GE is, of course, the management academy—it’s all about leading successful execution.” After his stint at GE, Hogan ran businesses at both Pratt & Whitney and Carrier.

All this experience is useful because a CEO isn’t focused solely on strategy or operations. “Some people might think the job is just about vision, but it is vision plus the responsibility to make sure the organization is going in the direction of that vision,” says Henning Kreke, BBA 89, MBA 90, CEO of Douglas Holding AG, the Germany-based retail behemoth.

“If you’re focused on operations, you need to be able to tell people why they should do it that way, at some point. But once you’ve formulated strategy, the emphasis should be on acting on it, rather than simply revising the strategy to no end.” Kreke began his career at Salomon Brothers before taking on ever-increasing responsibilities at Douglas.

Be an Intercom: Talk, Then Listen

It’s a truism that CEOs need to be good communicators; after all, they need to articulate their vision for the company. But good communication isn’t just about making yourself heard. It’s also about hearing what other people—including critics—have to say.

“A person with good communication skills listens,” says Morris. “If you’re a good communicator, you’ll get feedback. And communication means a willingness to talk about failures as well as victories—that’s what defines a top-level leader, in my mind.”

Hogan agrees that most of his time is spent communicating and coaching. “I spend a lot of time communicating with employees, shareholders, and potential shareholders. You don’t have to be entertaining, but you have to be able to tell people where you want them to go.”

Morris notes that people often confuse communication with charisma: open dialogue doesn’t necessarily mean a town meeting with loudspeakers. “The new CEO we found for one of our clients, for instance, wrote emails to employees every Sunday evening, updating them on what was happening at the company. That’s communication. I can’t imagine an employee at that company not getting excited about going to work the next morning to see what the CEO had to say. Communication says to employees, ‘I know what you’re doing, and you do it better than anyone else; here’s what I’m doing, and here’s how you can help me do my job better.’”

Such people skills are essential and are especially apparent when it comes to succession scenarios, says Kreke. “The emotional aspect of business can’t be overemphasized. If you don’t bring emotional leadership qualities with you, you’ll have a hard time. Eventually the choice of who gets to be CEO often depends on how well you know and understand people, and what kind of opinion other people have about you.”

In the past, says Morris, firms would ask executive recruiters for drill-sergeant-style chief executives. “They’d say, ‘Get me a Jack Welch’ or ‘Wouldn’t it be great if we had an Al Dunlap?’ Now all that has changed—the new philosophy is that of the ‘servant leader.’ As candidates are being interviewed, they’re asked how they coach, motivate, and train people. Those competencies are increasingly important.”

Get Over the Glamour Factor

Can you be passionate about printer cartridges? Can you stay passionate about them when the market takes a nosedive? Despite what it looks like in the press, most CEOs are not drawing up plans to create the world’s largest media conglomerate or, conversely, sweating bullets at an SEC hearing. The majority of chief executives preside over mundane, downright un-sexy companies that provide useful products and services year in and year out.

That’s not a bad thing, says Hogan. “I generally don’t believe in ‘sexy’ businesses. Sexy is ephemeral. What we have is a company that people can be proud to work for. Most people want a stable, interesting job and more say in how they do their work. If a leader can give them that, success is more likely. As CEO, if you simply seek publicity, you will always be disappointed. You need to have intrinsic goals, because there will always be someone getting better press.”

Not worrying about the limelight also helps CEOs see things as they are. “There aren’t too many CEOs who are not tough-minded and willing to see reality,” says Patteson. “As the chief executive, you have to make decisions based on that reality, not on your expectations.”

Rick Varela, MBA 96, CEO of Heron Millwork, a subcontractor in the construction industry specializing in cabinets and other wood products, looks to his educational background to steer him through tough situations. “You have to stay optimistic and calm; be patient and think clearly,” says Varela. “Be prepared for everything, and have the confidence to get through the bad times.”

Indeed, it’s easy enough to be CEO when the economy is doing well, so fair-weather friends need not apply. “Someone who has a record of success under adversity—now that’s someone you really want to look at for that top job,” says Wade H. Allen, MBA 90, president of Cendea, a senior-level executive search firm.

Hire Above Your Head

If you’re intimidated by the thought of employing people who might be sharper than you are, don’t become CEO. “When we look at CEO candidates,” says Allen, “we look for those who know how to recruit and retain good people—especially people smarter than they are. As a CEO, you’ll be training other people and simplifying your job so someone else can take over. You have to be able to grow, mentor, and challenge people.”

Selecting those around you is key, says Patteson. “You don’t have to have all superstars, but you must fill a couple of key positions with people who are really good.”

Even in a small firm, it pays to hire the best, says Donna Fox, MBA 95, CEO of Pacific Design, which manufactures laptop and PDA cases. “We don’t skimp on people; we have the same standards for hiring as a Fortune 500 company would. We hire people who are independent, who can handle ambiguity.”

In addition, notes Fox, it’s important to choose the right people for your board. “Have good, strong mentors on your board of directors. Make sure there are people who have expertise in areas that you don’t. Don’t be afraid to ask people to join—you’ll be surprised at what you can get just by asking.”

Take the High Road, the Long View

Sometimes, when you’re on your way to the top, it’s all too easy to lose sight of the big picture. “I’m a type-A personality; when I was at Dell Inc., I had 12 direct reports and was putting in three years of intense work, sometimes pulling all-nighters,” recalls Fox. “Some personal issues forced me to take a step back and rebalance my life. Now that I’m head of a company, I’m more aware of my character tendencies and more focused on what I can contribute, not purely on what I can achieve next. I work hard, but there are times when I turn my cell phone off—and when I’m at home, I’m home!”

Ochsenreiter credits his prior experiences for the way he balances his life as a CEO. “We had a sort of credo in the consulting industry—because we traveled so much, we took weekends for ourselves, for family time. I’ve stuck with that. I try to go to as many of my kids’ athletic events as I can. I don’t want to miss all the things they’re doing as they grow up. I think I’ve been successful thus far in striking the right balance between work and family.”

Keeping perspective also entails having a strong value system and leading with integrity, notes Hogan. “You have to walk the talk; the example that you set resonates through the entire company. You have to have clear moral leadership in addition to clear vision and direction.”

Contributing writer Suma CM is a vice president at Jungle Media Group in New York City.