Weekly Brief

July 23, 2024

Beware the CEO Bubble
Over the past few weeks, President Biden’s difficult decision towithdraw from the presidential race played out across US—andeven global—media. Until recently, journalists, political analysts,
and other opinion leaders were raising a number of questions about
who he was listening to, what information he was receiving, andwhether the people in his inner circle were giving him a candid
appraisal of the situation.
As this unfolded, I kept thinking about a topic I often focus on when
I meet with new CEOs and other leaders around the world: theinexorable growth of the CEO bubble and what to do aboutit.
When new in the role, CEOs and other leaders are generally
surrounded by people offering up frank views of the real situation,
providing novel ideas and approaches as well as unfiltered views ofpast decisions. But over time, we often see more challenging views
become quieter and constrained, as the dialogue subtly shifts towhat the leader wants—rather than needs—to hear. The focus on
the leader’s facial expressions and moods (and how to avoid the badones) can rise to a form of cultural anthropology.
That is the CEO bubble, and the walls of that bubble tend to thicken
over time. The result is that without proactive intervention, leaders
are likely to be sheltered from the reality of a difficult situation at a
critical juncture or until it’s entrenched. That could be anunderperforming business, a shifting market landscape, newcompetitors, or decreasing relative capabilities. It could also beinternal dysfunctions, such as a loss in agility, organizational
infighting, or departures of talent.
I don’t know of a trick that makes the bubble disappear, but there
are clear actions a leader can take to reduce these risks and makethe bubble membrane more permeable.
First, get the right team and the right tone surrounding you:•••

Make sure you include people who will challengeyou. Even if you make a decision that conflicts with theirpoint of view, you’ll know you’ve done so after thoughtfuldebate.
When people stand up and express a different
opinion, be sure to appreciate them—privately, butespecially publicly. When they’re right and you’re wrong,find a way to celebrate them.
Remember that you can’t always be your best
self. When you haven’t been—when you’ve come acrossmore sharply than you meant to, for example—bring it up
with your team later. Admitting to vulnerabilities andshowing that you value pushback even if it didn’t seem thatway in the moment will help people feel they can be honest
around you.

And beyond your direct team, seek out unfiltered sources ofinformation:•••

Engage with frontline employees who aren’t pre-vettedby midlevel staffers.
Have direct dialogues with customers—not just theCEOs of customers, but the people using your product orservice.
Participate in peer communities with candid discussion
forums. Find other CEOs, former leaders, or advisors whom
you can raise sensitive issues with and who will give you an
unvarnished point of view.

Breaking Through the Bubble
Is there anything you can do about the bubble if you’re not the one
in it? It can feel risky to speak up when others are silencing
themselves. The best strategy is to find a way of communicating
authentically and forthrightly—and in a style that allows the CEO tolisten and be less defensive.
Picking the right setting can help. For some, a relaxed dinner; forothers, maybe the golf course. I’ve known executives who usehumor incredibly well—anything that opens a CEO’s eyes to an
uncomfortable reality.
And what if none of that works? There are rare moments in a careerwhen silence is equal to complicity and speaking truth to power
requires taking on some personal risk. It’s hard to pop the CEO
bubble on your own. Joining forces with a few others can make anenormous difference in these difficult moments of truth.
And to be clear, the CEO bubble is not just a phenomenon among
CEOs. All leaders need to nurture teams that can engage with theworld as it is, not how we wish it to be. Organizational psychologist
Adam Grant calls these teams “challenge networks.” They’re goodfor the leader—and for everyone being led.
Until next time,Rich Lesser
Global Chair
Find more executive content by exploring The CEO Agenda.

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