Why Do CEO’s Fail?

THE #1 REASON CEOS, BUSINESS OWNERS AND MANAGERS FAIL TODAY IS LACK OF STRATEGY EXECUTION. Consider that less than 10% of strategies are successfully implemented and 70% of CEO failures are a result of poor execution. The most successful businesses are those that can define their success factors and then build systems to automate and drive the business forward.

WHY DO BUSINESS OWNERS STRUGGLE?  Those that struggle often fail to define what constitutes success and failure. Although success is measured in several ways, there are two statistics that I believe relate directly to what most business owners regard as having achieved success. The first is business profitability and the second is the ability to build the value of the business and then to successfully exit or transition their business.

RESEARCH INDICATES THAT ONLY 39% OF SMALL BUSINESSES ARE MAKING A PROFIT. Less than two in five businesses make a profit over their lifetime. Another study reveals that as many as 80% of all business owners make less than the average weekly wage and 40% make less than half the weekly wage of full-time adult workers. Why don’t business owners make a profit? – Because they lack accountability.


HOW CAN A BUSINESS ACHIEVE THEIR GOALS IF ONLY 31% OF EMPLOYEES ARE ENGAGED?  Small-to-medium sized businesses just do not have the right systems in place and when you drill deeper to analyze “WHY” you will discover another interesting statistic. To execute strategies you need motivated, engaged employees. So, if a business has a high number of disengaged or unmotivated employees then it is a logical outcome that they will struggle to execute strategies. A global survey indicates that in the average business, only 31% of employees are actively motivated to support and be proactive in their jobs. Based on that statistic, a whopping 69% of the workforce is likely to become a barrier to your success.

WHY DO SUCH A SMALL NUMBER BUSINESS OWNERS SUCCESSFULLY TRANSITION OR EXIT THEIR BUSINESS? If we examine the second measurement of success as being the ability for a business owner to build the value of a business so it can be successfully transitioned or sold, then it is interesting to note that less than half of all business owners will successfully achieve this goal. Often the business owner discovers after a lifetime of working in the business that is not possible to successfully transition.

Please give me a call at 314.610.1553 if you would like to learn more ways you can achieve your goals and dreams.