THE 10X CEOWhat Exceptional CEOs Do Differently

4 Questions About Your CEO Life

• #1 – Can your CEO effectiveness be measured, practiced, and elevated (like an athlete)?• #2 – What does CEO work (and effectiveness)

consist of?• #3 – What personal factors predict your CEO

success?• #4 – If you were forced to reduce your work

hours by 50%, how much effectiveness would you lose?

10X CEO – “An Accelerated Learning and Practice Environment for High Growth CEOs”

• 10X Member Companies (37)• Over $100 Million – 13 (35%)• $25 - $100 Million – 15 (39%)• Under $25 Million – 9 (26%)

• 2012 Annual Growth Rate – Revenue or Profit• Growth over 20% - 24 (65%)• Growth under 20% - 13 (35%)

• Why this level of performance?

A True Picture of Your CEO Effectiveness

Personal Predictors

Passion – For the Work“Top 3” Time

CEO Learning Ability

CEO WorkBusiness ModelCore Processes

Talent Environment

Business ResultsCustomer Value

ProfitGrowth & Innovation

Your CEO Work… Producers of Your Financial Results

Customer Value/Profit

Model

• Customer Delight• Sticky Ratio• High Profit Margin• High Return on

Capital

Core Processes

• Product Creation• Sales• Customer Delight• Support/

Overhead

Talent Environment

• Purpose/Values• Company Goals &

Roles• Execution &

Learning Environment

• Individual Fit (Motivation & Skill)

Company Growth Stages

Business Stage Objective CEO Role Fatal Flaws

I – PrototypeSales <$3 MilEmployees <20Venture Stage- Angel, A

1. Validated Need/Solution

2. Delighted Customers3. Reasonable

Profit/Value Assumptions

One (or two) Man Band 1. Customer need isn’t there.

2. Solution doesn’t work

II – Business ValidationSales $3 - $20 MilEmployees 20-100Venture Stage B,C, D

1. Predictable Delivery Engine

2. Predictable Sales Engine

3. Profit/Growth Model Validated

1. “Emergency” Player2. Selector of Players3. Coach for Players4. Process Engineer

1. Competition gets tougher.

2. CEO is a good Player but lousy Coach or Architect

3. Return on Investment isn’t good enough.

III – GrowthSales $20 - $100 MilEmployees – 100-500Venture Stage – D or Later

1. Business Grows without CEO Involved in Operations

1. Chief Culture Officer2. Selector of Coaches

1. CEO becomes bottleneck (can’t hire leaders or let go).

IV – MaturitySales +$100 MilEmployees – 500+Venture Stage -Public or Sale

1. Leaders and Process Still Work.

2. Innovation happens faster than existing business dies.

1. Seeing what’s next 1. Leaders get distracted2. Processes rust out3. The ability to create

dies.

Becoming 10X – The Practice of a CEO Athlete

Employ a consistent model that analyzes your business AND also your true CEO effectiveness.

Spend more than 50% of your CEO time on your highest leverage “Top 3” Priorities.

Apply an accelerated learning process to those Top 3 Priorities.

Replicate the 10X Discipline throughout your organization.

A Few Reflections• If you haven’t improved your business model, your core processes, or

talent environment each quarter, you haven’t really improved anything…and you’ve wasted your time.

• The mix and nature of business model, processes, and talent environment is different based on the particular growth stage of your business.

• Your essential personal skills are focusing on the few right things and applying accelerated learning to those things.

• CEOs who understand these concepts and train like a CEO athlete will have a huge advantage over their CEO peers.

• Investors place higher value on 10X CEOs