The four core competencies of a successful CEO
Writer: Pia Pursiainen
Let’s start with a fundamental truth: No one is born a CEO. It’s a role you grow into—through learning, development, and experience. Every successful CEO has made mistakes. What sets them apart is their ability to reflect on those mistakes, learn from them, and evolve into stronger leaders.
In his book ”Toimitusjohtaja, Johda ja ajattele kuin menestyvä toimitusjohtaja” Hannu-Matias Nurmi identifies four key competencies that define a successful CEO:
Self-leadership
Business leadership
People and organizational leadership
Stakeholder leadership
Here’s a brief overview of what each one involves:
1. Self-leadership
At the heart of all leadership lies the ability to lead oneself. Authenticity and courageous loyalty to one’s own personality—despite external pressures—are essential. A CEO must remain true to their values and act ethically in all circumstances. Amid the weight of responsibilities and expectations, it’s vital to carve out space for personal well-being and energy management. In short, to succeed as a CEO, one must master self-leadership and find sustainable ways to maintain high performance.
2. Business leadership
A successful CEO maintains a constant awareness of the reality surrounding the company. This requires gathering insights from diverse sources, such as data, observations, and intuition. The CEO must look ahead and articulate a compelling vision of the future, genuinely believing in it themselves. They must also understand the pace at which the company can achieve its goals and identify the key actions required. The ability to make timely, bold, and sufficiently accurate decisions lies at the heart of every successful CEO. And let’s not forget—financial acumen matters.
3. People and organizational leadership
Managing expectations within the organization is crucial, and regular communication is key. This includes reinforcing the vision, fostering belief in the future, and ensuring operational clarity. The CEO must surround themselves with the right people, the right team, because no one succeeds alone. The CEO’s role is to empower others to make informed decisions and deliver results, while actively removing obstacles and providing necessary resources. Setting the bar high and maintaining a culture of performance is among the CEO’s most critical responsibilities. To truly make an impact, the CEO should act as a sparring partner, not a micromanager.
4. Stakeholder leadership
The CEO must recognize that companies require a deeper purpose beyond financial profit. The importance of sustainable, socially responsible business practices cannot be overstated—even though, by law, a company’s purpose is to generate profit for its shareholders. A successful CEO not only understands business but also ensures that all key stakeholders are well-informed and actively engaged in meaningful, two-way dialogue. They communicate across multiple channels, staying true to their personality and attuned to the tone and substance of their message. Cultural sensitivity and social intelligence are also vital assets. By the way my colleague Kirpi wrote an excellent article about Leading culture, leading emotions. You can find it here.
During my time as a CEO, I would undoubtedly have been even more successful had I understood these four competencies as clearly as I do now—recognized where I needed to grow, and identified concrete ways to strengthen those capabilities.
The good news? Each of these competencies can be developed. They might just be the game-changer in your own CEO journey. There are many ways to grow—through self-reflection, peer support, executive coaching... One exceptional opportunity I would like to highlight is Henley’s CEO 360 program, specifically designed for CEOs. It might be your key to extraordinary success.
Pia Pursiainen |Partner| pia.pursiainen@chief.fi | +358 44 540 0654
