Top Challenges Facing CEOs in 2021

With the onset of the CoVid-19 pandemic and subsequent shelter in place orders combined with supply chain interruptions globally and domestically, navigating the management of newly remote workers on top of meeting financial goals has not been without it's share of unique challenged for CEOs across every industry. Closing Q1 of 2021, we are seeing some of the same prevailing concerns from CEOs that no MBA program or leadership retreat could have prepared someone to handle. We will look at the top challenges facing CEOs right now.

Main Leadership Challenges For CEOs:

In the 2021 CEO Benchmarking Report cites 70% of CEOs have restructured, either operating guidelines, personnel, or both. Leadership challenges cited in this report include:

Team Cohesion

A company survives and thrives with the success of it’s teams. The ability to set clear goals and expectations while keeping team members motivated and engaged is challenging in and pf itself under normal circumstances ie working in the same building or on the same campus, seeing each other face to face, and even the casual lunch out with coworkers all help build a cohesive, healthy environment that facilitates a shared vision and commitment to goal attainment have been absent.

In lieu of physical interaction, CEOs have been utilizing Zoom and other apps to keep meetings, conferences, and group dynamics alive, but admit that it is merely a substitute for in person interaction.

Managing Personnel

Managing people is always challenging but even more so when you are not seeing one another in a physical capacity on a regular basis. Keeping deadlines as workers may have a lack of sense of urgency due to new work structure, discipline of workers, and a basic lack of interaction all add to the burgeoning stress level on CEOs.

Supply Chain Interruption

Between shelter in place orders, restricted operational hours, and the prevailing labor shortage amongst the supply and infrastructure chain, having materials companies need for production and/or shipment readily available and delivered on time is a market condition most CEOs long for as a thing of the bygone good ole days. With the continued interruption of the supply chain, CEOs are experiencing hardships with fulfilling client orders regardless of time frame citing raw material shortages, lack of factory personnel, and even overworked transportation employees who are struggling to try to keep pace with demand of the supply chain.

This concern is just in getting materials to production. For corporations who engage in business to consumer, it can get even tougher. With guarantees of specific delivery times and order fulfillments as a unique selling proposition for many companies, failure to deliver (no pun intended) in the agreed upon time frame can result in loss of profits or if too far gone, can result in profit loss and lack of consumer confidence.

Acquisition and Retention of Talent

Good people have always been hard to find as the old adage goes and we find amongst the CoVid-19 era’s remote work climate that it is both true and false. Previously, CEOs may have to relocate quality talent from one part of the country or world to another. Now, CEOs can recruit from the global marketplace instead of their area or region of the world. The only caveat is now CEOs are competing with companies across the globe for quality talent. So while the potential talent pool has drastically increased, so has the opportunities for said talent resulting in a net neutral gain for companies globally.

Additionally, retention amongst existing talent remains a concern as workers are experiencing difficulties balancing remote work with family demands, care of children or other loved ones, and with the labor shortage many workers are working longer and longer hours on top of working in isolation, resulting in burn out.

How CEOs Can Navigate This New Normal

With so many challenges heretofore unseen, how can the modern CEO make the best of it and not only survive but emerge with a vibrant culture?

By fully embracing the remote worker setup as a mainstay and not a bandaid, thereby creating policies and procedures that carefully and explicitly delineate procedures and expectations that is a step in the right direction.

Creating more realistic timeframe goals for deadlines for production and delivery to anticipate supply chain interruptions and communicating clearly and succinctly with clients, can alleviate and set appropriate expectations for all parties involved. By doing so, it will establish a foundation of trust between companies and their clients which can make for lifelong relationships. Sometimes you don’t have to be the fastest, just the most responsive.

Seeking talent from unusual places. Looking outside of your typical niche or go to for talent you can many times find that diamond in the rough. The next big thinker or executive. Think outside of the box and also consider alternative workers. A freelancer can provide help in the midst of labor shortage and while they may be a one time pinch hitter, could end up being a valued resource whom you continue to work with for years to come.

Final Thoughts

CEOs must remain resilient and bold as they face team cohesion, personnel, and supply chain challenges. That can be done be embracing market circumstances as they are today and not looking to the past as things once were, and instead pushing to innovate and improve upon our current remote work climate.