Competitive Intelligence: How to Use the Seven-Factor Profiling Assessment to Gauge CEO Predictability - dummies

Competitive Intelligence: How to Use the Seven-Factor Profiling Assessment to Gauge CEO Predictability

By James D. Underwood

A CEO’s assessment score provides valuable competitive intelligence insight into how predictable a CEO’s decisions and actions are and how a CEO is likely to act in specific situations. After performing an assessment, use the total score as a key to understanding and predicting the CEO’s behavior:

  • 7–10: A score this low usually indicates that you’re looking at a my-way-or-the-highway CEO, who makes all or most of the decisions and bases them pretty much on the numbers. The CEO’s behavior is very predictable because he’s not open to input from subordinates and other external sources. Due to the CEO’s inflexibility, you can expect high turnover in the company as subordinates experience frustration.

  • 11–20: A CEO with an assessment score in this range makes most or all of the key decisions but is more receptive to influence from external sources. (Which sources they are depend on scores for the individual factors.)

    You can expect the organization to devolve into some level of bureaucracy, exhibiting status-quo thinking, slow decision making, and behind-the-curve responses to changes in market conditions. Because the CEO’s style probably contributes to turnover, expect a lack of consistency in how well the organization is able to execute strategy.

  • 21–30: CEOs who score in this range can be somewhat unpredictable. They’re usually management-by-objective types (goal-oriented, not inspirational or motivational), but they may be capable of leveraging some of the intellectual capital of others in their organization. In the case of CEOs who score in this range, your analysis of each of the seven factors (and the implications of each) are important in predicting their behavior.

  • 31–35: CEOs who score above 30 are the most formidable. They’re classic leaders rather than managers (empowering as opposed to controlling). They inspire creativity and risk taking, encourage everyone in the organization to take the initiative, and are very fast and efficient at making decisions.

    Because so many people are involved in the decision-making process, predicting the organization’s behavior is nearly impossible. Organizations like these are agile, creative first movers.