This Is What You Should Look for in a CEO
By: Uf Innovate
Tags: Leadership, CEO, Incubator, Decision Making, Management

The saying “pass the buck” has been around for quite some time. In our culture, the phrase means “to blame someone or make him or her responsible for a problem that you should deal with” (Cambridge Dictionary). But legend has it that in early American frontier times, in a game of poker, the dealer was designated by a buckhorn-handle knife stuck into the table in front of the him; when the dealer wanted someone else to deal, they “passed the buck,” and thus the phrase was born.

The saying “the buck stops here” is also a common saying, but it was popularized during the presidency of Harry S. Truman, the 33rd President of the United States. Truman adopted that saying and placed a sign on his desk with “The BUCK STOPS here” clearly displayed for all to see. (Seldom mentioned is that the back of the sign stated, “I’m from Missouri!”).

Truman is primarily known for making the decision to drop the atomic bombs to end World War II, although he accomplished other things during his presidency. Many individuals supported him in the decision to drop the bomb, as they felt it saved countless lives on both sides; there were also many people who opposed this decision, as they declared it opened up the nuclear age and killed many civilians.

Regardless, the point is, President Truman was known for making tough decisions. When a call had to be made, President Truman stepped up and made it. He often referred to his sign in speeches and discussions about “passing the buck” or being indecisive.

To Harry, “the buck stops here” means he WOULD make the decision. So how does this relate to you? Of course, you have to make countless decisions in your career — some big, some small. One of those decisions — the determination of who gets admitted to your incubator program — is one of the most important ones you make for your incubator program.

Those decisions should be made carefully, with much time given to study, evaluate, discuss and gather opinions from other experts, and, of course, one or more interviews with the prospective client.

Typically, I ask the client to “pitch” to me, using their standard investor pitch. (Note: Some clients don’t have a pitch prepared as they want us to help them prepare one. The same goes for business plans; I don’t usually ask for one as the prospective client is coming to us to help with these things.)

What I do expect is a solid business concept statement, a solid understanding of the market, a reasonable amount of funds to get started (about six month’s rent “in the bank”) and a founder/owner who’s willing to listen. Sure, there’s more, but this is the basic approach.

And, in the end, the decision is made by — me! The buck does, indeed, stop here, as I am called upon to make the final call for the prospective client (and, often, I make the final call on hiring a new staff member). I have no committee to share this responsibility; I have no admissions board to make the call.

I realize some incubators have a managing board or admissions board that can or will shoulder the decisions as to who is admitted (or, at the very least, make recommendations to management). But, in general, the business incubator director/manager/CEO (or whatever title you prefer) will make the final call. (I prefer “Emperor,” but my employees haven’t bought into it yet.)

So, the buck stops with YOU. How do you make a good decision? What are the factors that influence you to “pick the right companies at the right time” for your program?

Look for these traits in the company leaders

Affability

First, look for founders and CEOs you would want to work beside as they build their company. I have a saying (and, yes, it’s my original): “In a small company, affability is more important than ability!”

The term affability means being sociable, reasonable, accessible, friendly and open. You need to identify CEOs who get along with people, who either know how to motivate people or who want to learn these skills. It’s my №1 significant quality: Are you friendly and compatible? Or do you know everything already?

Marketability

Second, marketability is key. Do they know their market, understand the size of it, comprehend how they will take market share, and do they have a good grip on how to reach their ideal consumers? Can they market themselves and their company effectively?

Markets and marketing are multifaceted. I like to ensure my incoming clients know their competition (and respect them). I want my new clients to accept milestones for achieving marketability. I need them to face the idea that they have to learn how to best reach customers before they can get down to business selling to customers.

If the potential client has a great idea, do they know how to make it more than just an idea? And can they market their own personality so potential investors will actually want to invest? Being marketable is more than just pushing product; it’s being able to sell yourself.

Reasonableness

Third, a key criteria is reasonableness. Are they reasonable when you try to teach them something or talk to them? Do they have their own opinions (which is a good thing) or do they treat their opinions strictly as fact (which is a bad thing)? Will they listen more than they talk? Will they accept both of you working together to set milestones and goals for company growth?

We’ve all experienced CEOs who are unreasonable, who are know-it-alls, who express the sentiment of “it’s my company and I’ll do with it what I want!” Certainly, it IS their company — but if you are willing to invest time, effort, mentoring, advising and everything else that goes with business acceleration, they should at least be willing to listen.

Truly, they need to be reasonable. They should have sound judgment, be fair and sensible. Being reasonable also goes along with making projections (no hockey stick projections!), writing business plans, and pitch refinement, in addition to accepting advice and direction.

Responsibility

The final factor I’ll suggest is responsibility. Certainly you would expect a CEO to be reasonable, as noted above, but they also need to be responsible. A solid CEO needs to be responsible for their choices, for the company’s direction, and for the employees. Being responsible includes accepting failure and mistakes and choosing to move forward despite those setbacks.

Responsibility means being reliable and trustworthy. Responsibility is determined by the individual’s willingness to learn good management skills and to value employees — lifting them up when they need encouragement and helping them up when they fail. Great CEOs accept responsibility head-on, and they work hard to show their employees they are willing to shoulder the load and move the company forward.

This is truly where the buck stops — and great CEOs know how to project that fact to others. Just as a great incubator leader knows the buck stops with him or her — and that he must communicate that so others know who will make the decision. (A sign on the desk, such as Truman displayed, might help.)

Takeaway

Are there other factors to consider when selecting companies to participate in your incubation program? Sure, but these four — affability, marketability, reasonableness and responsibility — make a huge difference, in my humble opinion, in the success of a company. A true growth company CEO encompasses all these ideals (and more) and shares them with their employees.

In fact, great CEOs know how to display these factors daily, and they know the motivational effect of being affable, marketable, reasonable and responsible. They understand these factors can make them more effective, and, therefore, they are willing to take on the persona of all four elements.

That’s what helps you make a solid decision on which companies you invite into your program.

I’d bet you a buck on it!