When the CEO does not optimize the company's resources, the most obvious consequence is loss of market share and profitability. For the company to succeed each member of the company must maximize their individual productivity and work together for the betterment of the company. This commitment develops directly from the individual's perception of the company and how the individual personally fits into the company's architecture and future strategies. The CEO is looked to for direction and inspiration. The CEO can not only fail by taking the company in the wrong direction but also by not inspiring the organization to optimize potential.
Individuals depend on the CEO to provide that inspiration.
Individuals are rather difficult to inspire since inspiration is more of an emotional response than an intellectual response. Appropriately inspired, employees will go to great lengths to support even a bad or weak strategy. Part of inspiration is the direct result of the perception of trust. When individuals feel the company is united and has integrity they also feel trust is present and most reasonable obstacles can be overcome. Even difficult challenges can be met.