In recent years, it seems that many C-suites come with revolving doors.
Employee turnover can be very expensive, especially at the top levels. But the churn continues. According to one study, more than 1,400 CEOs left their jobs from January to September of 2023, a 50% increase from the same period in 2022. This marks the highest CEO turnover in more than two decades.
There’s no doubt that today’s CEOs operate in an increasingly high-risk environment. They’re expected to grapple with more complexity, often with shrinking resources and impatient boards and shareholders.
Hans-Werner Kaas and Ramesh Srinivasan offer some insights that can help. They’re coauthors (with Dana Maor and Kurt Strovink) of The Journey of Leadership: How CEOs Learn to Lead from the Inside Out. Kaas is a senior partner emeritus at McKinsey and co-dean of McKinsey’s legendary CEO leadership program, “The Bower Forum.” Srinivasan holds the same position with “The Bower Forum” and is a McKinsey partner. Their book is the first-ever presentation of McKinsey’s step-by-step approach to transforming leaders both professionally and personally.
The authors attribute effective leadership skills to adopting an “inside out” approach. Kaas explains.
“We encourage leaders to take an ‘inside out’ approach by first looking inward to gain a deeper understanding of their emotions, assumptions, and habits,” he says. “This practice can help them identify the often-unrecognized ‘triggers” or patterns that were established earlier in their lives. Leaders must also think deeply about their purpose and what they want to achieve.”
Kaas says those who invest in self-reflection and personal growth are better equipped to lead and inspire their teams with humility, empathy, and empowerment, balanced with confidence, resilience, and direction.
In terms of observable behaviors, how does an effective leader exhibit humility?
Srinivasan says it helps to first understand why leaders may tend to exhibit overconfidence. Many who step into leadership roles believe the job requires them to make decisions and solve problems on their own.
He tells how Mark Fields took a different approach when he stepped into the CEO role at Mazda. “He immersed himself in Japanese culture, ensuring he understood and respected the local context, and listened empathetically to his team,” Srinivasan says. “Mark reframed the company’s strategy as a collective ‘Mazda plan’ and aligned management practices with cultural sensitivities.”
Srinivasan says leaders who demonstrate humility realize they may not have all the answers. “They create circles of advisers to guide and challenge them, and they approach these conversations with openness.”
So, how do good leaders operate with confidence without coming across as arrogant or self-centered?
Srinivasan says an inflated sense of self can get in the way of putting the good of the organization ahead of their own glory. “By taking the ‘inside out’ approach, leaders can gain a better understanding of these tendencies and, in turn, how others may perceive them,” he says. “The next time they face a difficult decision, they have the self-awareness to ask, ‘If I believed that I belong, how would I approach this for the good of the organization?’”
Good leaders, he says, understand inviting additional perspectives to inform their final say doesn’t damage their credibility. That’s a sign of a confident leader, one who’s willing to collaborate.
For leaders, what are the keys to effective interaction with stakeholders?
Kaas says openness and tuning in to others can go a long way. “This begins with slowing inner chatter and connecting with their awareness of others’ perspectives and intentions,” he says. “It allows leaders to create space for others to be heard.
Kaas tells about one CEO who, when asked a question during a fireside chat, listened closely and, instead of answering directly, asked the questioner about the fear that he sensed was driving it. Because he tuned in to what was being asked, it resulted in a meaningful, human conversation about what was really on the attendee’s mind.
Much is being said these days about “vulnerability.” How can a leader display that characteristic in a genuine way that doesn’t come across as contrived
Srinivasan says younger generations in the workforce expect their leaders to be authentic and show their humanity. “The primary purpose of vulnerability is connection,” he says. “Effective behaviors in the workplace include sharing personal stories, admitting when you don’t have all the answers, and seeking feedback. But nuances matter here—a leader likely wouldn’t want to demonstrate vulnerability in the same way during a board meeting as in a small working session with trusted colleagues.”
Kaas notes that a common assumption about leaders—founders and CEOs in particular—is that they must be larger than life. He believes this feels especially timely considering recent online discussions of “founder mode” versus “manager mode.”
“We’d argue that the age of the ‘imperial CEO’ has long passed,” he says. “Modern leadership requires balancing humility, empathy, resilience, and collaboration. Today’s best leaders understand they don’t need to find all the answers within themselves but must listen and connect the dots across the organization. They foster an environment where everyone feels valued and empowered to contribute. Of course, personal growth and continuous reinvention is critical to develop versatility, which has to be anchored in authentic role-modeling by leaders.”
Additionally, Srinivasan notes, conversations surrounding generative artificial intelligence may have some asking how these innovations will impact the role of the leader. “As AI takes over more routine tasks, the human touch in leadership can make sure technology is an enhancement to the workplace experience,” he says. “In a data-driven world, it’s more important than ever to invest in human connection.”