Islamic University of Technology (IUT)

Department of Business and Technology Management

Assignment on Summary of the Book “WHY CEOs FAIL”

Submitted to,

S.M Rakibul Anwar

Assistant Professor,

Department of Business and Technology Management

Islamic University of Technology

Submitted by,

Arafat Ahmad Ayaz

ID-180061138

Department of Business and Technology Management

Islamic University of Technology

Summary of Why CEOs Fail:

Leadership failures can result from 11 character traits, either deep-seated personality faults or
qualities that once were beneficial but became problematic. The authors offer recognizable case
studies and specific advice to bolster their case that these flaws derail leaders. The culprit
characteristics can seem a bit general, an inevitable concern in a book seeking simple explanations
for human folly. This is just the ticket for bosses who want to address their possible personality
pitfalls before they commit career suicide. Leading an organization is increasingly challenging and
complex. It’s so difficult that some two-thirds of CEOs fall short. They fail in spite of hard work
and sterling intentions. These ambitious, competent people wind up fired, demoted or stripped of
power due to 11 common personality flaws that can kill a CEO’s career. These "derailers" often
emerge in times of stress, chaos, or conflict - exactly the pivotal moments when a leader can least
afford them. But once you recognize these weaknesses, you can address the mistakes you’re
making because of them. Having one or two of these flaws might not have stopped you on your
way up the career ladder, but now that you’re the CEO, your weaknesses will be magnified. Begin
by asking yourself if you have any of these problematic personality traits:

● Arrogance—you think that you're right, and everyone else is wrong.

● Melodrama—you need to be the center of attention.
● Volatility—you're subject to mood swings.
● Excessive Caution—you're afraid to make decisions.
● Habitual Distrust—you focus on the negatives.
● Aloofness —you're disengaged and disconnected.
● Mischievousness—you believe that rules are made to be broken.
● Eccentricity—you try to be different just for the sake of it.
● Passive Resistance—what you say is not what you really believe.
● Perfectionism—you get the little things right and the big things wrong.
● Eagerness to Please—you try to win the popularity contest.
Effective leadership is a topic of paramount importance for today’s competitive global
environment. Much has been spoken and written about the styles of effective leadership. High
CEO turnover is a complex issue that cannot be traced to one cause. The CEO must be held
accountable and cannot be allowed to continue without showing results. CEOs who are not
successful, does not mean that they are incapable or don’t have the vision. But the fact is that in
spite of doing well something happens that derail them and make them accountable. Sometimes it
is wrong execution of strategy, sometimes, they don't accept the reality of change, sometimes they
don't make compromises and become overconfident. Reasons may be any but a CEO is
accountable to all. Therefore this is the best time to make a stitch in time. The need is to recognize
those traits which are really required. The creation of leadership is an elusive entity in its own
form. It calls for a strong result oriented approach, dynamic thinking, establishment of values,
implementation of shared decisions by involving people at all stages. The present article throws
light on the points where the world's great CEOs stuck and which, if adopted, can save the failure
of a company.

Job of a CEO is highly demanding and calls for immediate attention of all, if things don’t move in
the way they should move. A CEO has to be more proactive, visionary, tough enough to take strong
decisions, adaptable and of course a leader who can take his people with him. Failure as CEO is
never final. A CEO has to be passionate, not overconfident for his job. High CEO turnover is never
appreciable neither for the company nor for the person himself. A CEO of a company works like
a compass of the ship which if diverted will lead the ship in the wrong direction. Therefore why
not to make a stitch in time so that pitfalls could be avoided.