We had a nice discussion recently about how much details a CEO must now about his company. Does a IT-Consultant have to know how to set up a wifi-router? Does the CEO of a OnlineGame developing company need to play games online?
Both questions I would answer with a strong YES. There are two kind of management schools. One is old-fashioned, but still very successful: It’s the “start on the low level and end up at the board”. That means: Learn about the company you are working for.
Another school teaches you: Go to Harvard, get your MBA, and then start right at the management level.
The latter means you are kind of able to manage everything. That might be the case for certain management skills. But, and this is my strong believe, when it comes to a crisis, you are lost.
The reason is: A company is not just for itself. A company normally sells something, either service or products. And a company has customers. So it’s just important to know a) your products and b)your customers.
In a crisis like the one we have now, the Managers are doing what they learned at school. They take a look at the numbers and trying to reduce costs as well as to ask the banks for more money.
The Businessmen are focusing on the products: Can we produce better quality with lower costs? Or do we need more innovation? Do we really understand our customers and what they want?
That’s the difference. You will be able to understand your customers and products if you never had a sales call or just used your own products. Look at Apple: No products will be marketed if Steve Jobs hasn’t played around with it for weeks.
That’s why I think a CEO, or business owner of any kind, should know about what his business is about. A lot don’t.
Picture by http://www.flickr.com/photos/acaben
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