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Business

Why Executives Need to Leave the Boardroom for the Store Floor

Why The Best Leaders Leave the Boardroom for the Frontlines

Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways

  • Organizational layers soften reality, so executives end up managing reports instead of the business.
  • Frontline employees spot friction long before it shows up in dashboards or formal meetings.
  • Regular, unstaged time on the floor plus visible follow-through builds both better decisions and trust.

One of the biggest risks executives face is becoming too disconnected from the reality of their own business. It becomes easy to experience the company through dashboards, presentations and filtered conversations instead of direct observation. Information gets summarized, simplified and cleaned up before it reaches the executive floor. Over time, leaders can start managing reports about the business instead of the business itself. That disconnect creates dangerous blind spots.

I learned early in my career that conference-room reality and frontline reality are often very different. A new strategy hire, fresh out of Wharton in a Brooks Brothers suit, asked me how she could succeed at our Fortune 100 company, I told her to work in one of our brick-and-mortar stores for a year. She was incredulous, but she took on the challenge, and after nine months, we plucked her out of the store and promoted her into a director role. Her doubters could not help but understand how talented and equipped she was to handle the responsibilities.

Employees closest to customers usually know where friction exists long before executives do. They see operational inefficiencies, customer frustrations and cultural problems in real time while leadership teams are still discussing quarterly trends.

The issue is rarely bad intent. Most executives genuinely want accurate information. The problem is that organizational layers naturally soften reality as information moves upward.

That is why executives need recurring exposure to the frontlines of their business.

The best information rarely comes from formal meetings

In large organizations, people often become cautious around senior leadership. Meetings grow more polished. Language becomes more careful. Employees avoid uncomfortable truths because they do not want to appear negative or difficult.

Meanwhile, the most valuable information is often sitting several layers below the executive team. I have walked through stores, distribution centers and offices where frontline employees identified problems within minutes that had somehow never surfaced in formal reporting. Customers notice operational breakdowns immediately. Employees working directly with customers notice them even faster.

Strong executives create systems to hear those signals earlier. That requires more than scheduled site visits with carefully prepared talking points. Employees can quickly tell the difference between performative visibility and genuine curiosity. Leaders who spend time asking questions, listening carefully and observing operations firsthand gain a much clearer understanding of how the business actually functions and build credibility with their teams.

Some of the most valuable conversations happen informally: a store manager explaining why a process slows employees down, a frontline employee describing a recurring customer frustration or a warehouse worker identifying inefficiencies that remain invisible on spreadsheets. Those conversations often reveal more than formal presentations ever will.

Growth naturally creates distance

As companies scale, executives inevitably become more removed from day-to-day operations. Some separation is unavoidable. Running a large organization requires strategic focus, investor communication and organizational coordination. Still, distance changes perspective. Growth rewards companies that remain operationally aware.

The challenge is that success itself often creates insulation. The larger an organization becomes, the easier it is for leadership teams to spend most of their time with other executives rather than employees and customers.

That environment can slowly distort decision-making.

A strategy that looks logical inside a boardroom may become completely impractical inside a store, warehouse or customer service environment. Leaders only discover those gaps when they spend time where the work is actually happening.

Leadership looks very different from the store floor

Executives are ultimately paid to make decisions under uncertainty. Better information leads to better decisions. Frontline exposure gives leaders context that reporting alone cannot provide. It helps executives understand how employees experience the company, how customers interact with the business and where operational friction creates unnecessary complexity.

It also improves credibility. Employees notice when executives show genuine interest in how the business operates at ground level. They notice when leaders ask thoughtful questions, remember details and follow through on concerns that get raised. That visibility builds trust because employees feel seen instead of managed from a distance.

People become more candid when they believe leaders genuinely want honest feedback and are willing to act on it.

Entrepreneurial leadership requires proximity

One idea I have spent a lot of time thinking about in recent years is entrepreneurial leadership inside larger organizations.

Startups survive because founders stay close to customers, operations and execution. Problems surface quickly, decisions happen quickly and adjustments happen quickly. Larger companies often lose some of that responsiveness as bureaucracy expands.

Executives who stay connected to frontline reality help preserve that entrepreneurial energy and develop a culture of open dialogue. In my career, store visits were never dog-and-pony shows. I went regularly; three out of four weeks, I would be on the road. I loved being close to the action, and by being in close proximity to these teams, they knew that we were all pulling in the same direction.

They recognize problems earlier, identify opportunities faster and make decisions with greater operational context. They understand how strategy translates into execution because they regularly see the execution itself.

Leaders who become completely disconnected from customers and employees eventually begin leading an abstract version of the company instead of the real one.

That is where costly mistakes begin.

Practical ways executives can stay connected

Executives do not need to spend every day on the frontlines, but they do need systems that keep them connected to operational reality.

That means spending recurring time in stores, branches, warehouses or customer-facing environments without turning every visit into a staged event. It means asking employees what slows them down instead of relying entirely on dashboards and presentations. It means observing customers directly and paying attention to repeated friction points employees consistently mention.

Leadership teams also benefit from creating closer proximity between decision-makers and operators. High-potential executives should spend time in operational roles early in their careers. Senior leaders should periodically work alongside frontline teams to better understand how strategy translates into execution.

Walk the floor without a large leadership entourage. Eat in the employee cafeteria. Ask frontline workers what they would change if they could fix one thing tomorrow. The goal is not to inspect employees. The goal is to understand reality more clearly.

Most importantly, leaders need to follow through visibly on the feedback they receive. Employees become far more candid when they believe leadership is genuinely listening and willing to act.

A company’s culture and operational reality are usually visible long before they appear in a quarterly report. Leaders who stay close to customers and employees tend to identify problems earlier, make better decisions and build organizations that remain adaptable as they grow.

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Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways

  • Five strategies to help CEOs fight isolation and improve their decision-making process

For many CEOs, it can be lonely at the top. The success or failure of a company largely rests upon the decisions its leader makes. Added to that pressure is the fact that the CEO’s role is innately made up of contradictions. CEOs are expected to deliver short-term results while planning for long-term success, to present their team with a sense of optimism while also being realistic and clear-eyed about challenges, and to be curious and open to other ideas while also providing answers when the situation demands it.

While each member of the team plays a crucial role in bringing the vision to life, CEOs are ultimately accountable for all wins and losses by setting the strategy and vision and putting the team in place to execute.

All of these factors can instill a sense of isolation, but I’ve noticed over the years that effective CEOs use the following time-tested strategies to diminish isolation, improve decision-making and maintain focus and productivity:

Related: 4 Reasons Business Leaders Struggle With Loneliness — and How They Can Overcome It

1. Join a community of CEOs

Just a couple of years after I took on my first role as CEO, the financial crisis of 2001 hit, and I felt ill-equipped to lead through that tumultuous time. Thankfully, someone on my board recommended I join a peer advisory group. Through my involvement in that community, I found many other CEOs navigating similar challenges, and together, we supported one another in finding a path forward.

Since then, I have watched thousands of leaders travel the same route to the same result — finding community outside of the company with other CEOs experiencing similar challenges removes self-doubt and banishes isolation.

Having a peer group or community not only helps leaders work through challenges, but it also helps them identify opportunities. Oftentimes, leaders become too close to situations; outside perspectives challenge biases and encourage out-of-the-box thinking, allowing leaders to find unique ways to turn dead ends into doorways.

2. Align your executive team

Putting in place a trusted executive team to cascade strategy throughout the organization quells CEO isolation and fuels collaboration and productivity. The most successful CEOs choose an executive team with diverse skill sets but shared goals and values. When an executive team is aligned around mission, vision and purpose, decision-making becomes easy for everyone within the organization.

Team leaders are responsible for showcasing the company’s values through all their decisions and interactions. Seasoned CEOs surround themselves with an executive team that can remain committed when challenges arise and work together to continuously execute the strategic plan while fostering innovation.

3. Listen to employees from all levels

One of the best ways CEOs combat isolation is by talking to frontline employees who are interacting with customers. They are the first ones to hear real-time feedback about what customers are asking for and how the company can pivot to quickly respond to those needs. Listening to customer feedback directly provides clarity. And when teammates know that their input is valuable to decision-making, it creates a culture where everyone is energized.

A common CEO fallacy is the belief that the role of a leader is to sell instead of engage in dialogue. In my first C-Suite role, I too was under the impression my job was to generate ideas and persuade my team to follow suit. In reality, the best CEOs remain curious and actively seek differing points of view to make informed decisions.

Related: 6 Ways to Make Hard Decisions Easier as a Leader

4. Find a mentor

Almost every world-class CEO I’ve ever met has this in common: They have, or have had, a mentor or coach who challenged them to improve. In Vistage’s 2020 CEO Confidence Index survey, 86% of the CEOs surveyed answered that mentors have been critical to the success of their careers.

Mentors provide a CEO with an outlet that may not be available within their organization. They can serve as a sounding board, as well as encourage a CEO to look in new directions for solutions. And when they respectfully disagree with a CEO or share wisdom from their own career trajectory, it can change a CEO’s perspective entirely.

5. Seek insight and inspiration from new sources

We all require periods of solitude for true reflection. However, idea generation rarely happens in a vacuum. World-class CEOs constantly seek out new insight and diverse perspectives. They read books and case studies from the best business minds. And they take the time to step outside of the day-to-day operations to work on the long-term strategy of the business.

While leading a company can feel isolating, CEOs who seek out a wide variety of perspectives in the decision-making process not only diminish isolation but propel their organization to success along the way. When CEOs seek out new ideas and encourage open dialogue, they have the support they need to make challenging decisions and navigate unexpected hurdles.

Related: 7 Tips for Making Quality Business Decisions

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Opinions expressed by Entrepreneur contributors are their own.

Chief Executive Officer (CEO), the title is often viewed as the pinnacle of business success. With their power, influence, authority and big paychecks, CEO positions can offer the highest level of stature in the business community.

Is the position of CEO all that it is cracked up to be?

For me, becoming a CEO has been much lonelier than I ever imagined. As business leaders we spend a lot of time ensuring our teams are happy, productive and healthy but what about the leader?

Related: Three Reasons Success Isn’t All It’s Cracked Up to Be

Who takes care of the CEO?

Who is focused on our engagement? According to numerous studies, half of CEOs reported feelings of loneliness in their roles, and the majority of these CEOs believe these feelings have an impact on their performance.

Although it may be tough to sympathize with a CEO who is experiencing loneliness the simple fact is CEO loneliness and isolation is bad for business and all the people working in the organization.

A CEO working in isolation cannot be effective long term and it is demoralizing to their teams. Good decision making comes from multiple perspectives and data points, in isolation it is virtually impossible to have this.

Related: When It Comes to Fitness, Many CEOs Are Literally Walking the Talk

CEO’s are more visible in this digital world.

The challenge is especially paradoxical in the digital world where CEOs are more visible than ever, yet have fewer personal interactions. They are suddenly more noticeable and obvious in the organization, the community and often in the media. Many leaders have thousands of social media followers but don’t know who their real friends are. They worry personal interactions have far less to do with genuine friendship and trust than career ambition.

Many newly promoted CEOs learn “You become a title not a person,” overnight, relationships change and the information you receive becomes filtered. People want to meet with the CEO, not you as a person.

It’s also a natural phenomenon for employees, even senior executives in the company to hold back opinions and information that they fear might harm their career or your perception of them.

The CEO must now appear confident and unwavering, even invincible, hence very few are comfortable in showing any vulnerability. Ironically many leaders, especially women, will admit privately to suffering from imposter syndrome and fear that they will be discovered to be incompetent.

Very early in my role as CEO I was given great advice: keep learning, prioritize time with other CEOs, put together a group of advisors, collaborate, and make time for business interactions outside the office.

Related: Three Ways to Simplify Your Company Culture and Build Trust

Who will I talk to and confide in?

Many leaders admit one of the biggest challenges they face is not having someone to talk to about their business, especially their toughest issues. Leaders know they are ultimately responsible for the well-being of the organization and it’s people. If they fail, many people will be out of work. They bear the mental and emotional weight of guiding their companies to success, protecting their employees and their families.

In order to be viewed as a leader many CEOs believe they must appear bulletproof much of the time, this is not healthy or sustainable long term. They also need to find an environment where they can be vulnerable and learn and grow in a safe trusting environment. A place where information is unfiltered, advice and best practices are free flowing and people aren’t afraid to give you tough love when you need it.

As the old saying goes “A wise person learns from experience and a wiser person learns from other people’s experience.” Just like everyone else, CEOs need a safe space to say what keeps them up at night.

Related: Lessons for the New CEO From Five Great Leaders of History

We all need mentors, advisors, critics and a place to continue our ongoing learning and development. For me, I found the solution through Young Presidents’ Organization (YPO). YPO is the global platform for chief executives to engage, learn and grow with almost 25,000 CEOs across the globe in 140 countries.

This spring almost 3000 of these CEOs from across the globe descended on Vancouver British Columbia for the annual Young Presidents Organization annual conference. This is not just another conference with a few great speakers. Instead this conference is an opportunity to bring together some of the world’s pre-eminent thought leaders, philanthropists and entrepreneurs.

This group often looks more like a party of great friends getting together, rather than a room of people whose organizations collective corporate revenue is high. In fact, so high the earning in the room are greater than most countries’ GDP (YPO companies generate over USD6 trillion in annual revenues).

The magic behind the conference is the opportunity for leaders across the globe to share best practices from across the globe in a trusted environment. There was a lot of learning about the latest technology, digitization, geopolitics, philanthropy, the shared economy and sunsetting of the hydro carbon era.

Most important though, was the opportunity for CEOs to look outside the office and see what is happening around the globe and get together in trusted peer forums to discuss issues and challenges.

Executive loneliness doesn’t have to be an inevitable part of the CEO’s job. In fact, in today’s hyper competitive world you can’t afford to risk isolation. Loneliness and isolation compromises your ability to make good decisions and to lead your organization forward.

Find a group of trusted advisors, fellow CEOs and people who will provide you with a safe haven of trust to tackle your biggest business challenges.

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