CEO confidence - #1 reason why founders fail

CEO confidence is viewed as essential for leadership, described as a "confidence game" where a CEO must be able to "talk themselves into" believing they know enough to proceed.

Here is further context on the nature and manifestation of CEO confidence:

The Nature of Confidence and Decision-Making

Confidence requires that leaders operate and make decisions even when they are "not sure that they're right". It is highly personal; the CEO must feel it themselves to truly possess it. The sources suggest that a CEO needs the right mindset, including confidence, but it must be combined with practical techniques for handling complex interactions.

The Crisis of Confidence

The number one reason a founder fails at the CEO job is attributed to a crisis of confidence. This crisis typically stems from making a decision that turns out to be wrong, resulting in real consequences and suffering for people. This experience makes the CEO feel terrible and prompts the thought, "I don't know what I'm doing". Unlike most people, CEOs face high-stakes situations that shatter their confidence.

Hesitation and Its Consequences

The primary visible outcome of lost confidence is hesitation. This hesitation manifests as a "lack of decision where there really needs to be a decision".

• Loss of Effectiveness: A CEO might be brilliant, but if they wait too long before taking action, they become ineffective.
• Organizational Dysfunction: If the CEO loses confidence and hesitates, they create a leadership vacuum. This vacuum can make the company highly political and dysfunctional.
• Excuses for Inaction: CEOs often rationalize their hesitation with excuses to avoid necessary tough decisions, such as concerns about what the press or employees might say after firing an executive, or claiming they lack time to hire a replacement. The sources dismiss these excuses, arguing that if an executive is underperforming, "no job is better than a bad job".

Cultivating Confidence and Confronting Difficulties

To overcome these situations, leaders must learn to "run out the pain and darkness" rather than run from it.

To help portfolio CEOs recover or maintain confidence, strategies have focused on providing a powerful external support structure (the platform network), so they feel they can call any high-level executive or official for advice. Furthermore, events like the "CEO barbecue" are designed to "imbue this feeling that, like I may not totally know what I'm doing, but I should be CEO" by placing them in a social setting with highly influential figures.

Recommendation: My First Million with #1 reason why founders fail as CEOs by Ben Horowitz

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