Time is the scarcest resource for CEOs: Harvard Business School study

Summary

A study tracking 27 CEOs across industries with average revenues of $13 billion reveals insights into their work habits. CEOs allocate about 40% of their time to a personal agenda, crucial for effective leadership. Despite working 9.7 hours a day, they also engage 72% on weekends and 70% on vacations, highlighting the demanding nature of the role. The study underscores the importance of downtime for CEOs and the challenge of managing email overload. It also emphasizes the necessity for CEOs to work indirectly through others, leveraging their direct reports for strategic success.

Takeaways

• 🔍 The study analyzed 27 CEOs from various industries with companies averaging $13 billion in revenue.
• ⏱ These CEOs were tracked for 13 weeks, revealing unprecedented insights into their daily activities and time management.
• 🕒 Time was identified as the most scarce resource for CEOs, who have to manage numerous responsibilities and agendas.
• 📈 Effective CEOs were found to dedicate around 40% of their time to a personal agenda, focusing on key areas they wish to advance.
• 📉 CEOs who are less effective may only allocate 10-20% of their time to essential tasks, getting pulled into less critical matters.
• 🕗 The average workday for CEOs was found to be 9.7 hours, but they work on 72% of weekends and 70% of vacation days.
• 🏋️‍♂️ CEOs need downtime, including exercise, sleep, and family time, which are crucial for their success.
• 📧 Email was highlighted as a significant challenge, with CEOs needing to manage it to avoid getting bogged down in operational details.
• 👥 CEOs must work indirectly, through others, leveraging their direct reports and organizational processes to achieve goals.
• 🚫 The study suggests that CEOs should protect 'alone time' to think strategically and avoid being overwhelmed by the minutiae of daily operations.

Q & A

How many CEOs were studied and what was the average size of their companies?

27 different CEOs were studied, and their companies had an average size of about 13 billion in revenue.

What was the duration of the study on the CEOs' activities?

The CEOs were tracked for 13 weeks, which is equivalent to three months, on a 24/7 basis.

What was one of the key findings regarding the scarcity of a resource among CEOs?

Time was found to be the scarcest resource for CEOs, as they have many agendas and responsibilities but cannot do everything.

What is the significance of a personal agenda for an effective CEO?

An effective CEO needs a personal agenda to dedicate their time to specific tasks and responsibilities over the next few months, which is separate from the corporate agenda.

What percentage of time should a good CEO spend on their personal agenda according to the study?

A good CEO should spend about 40% of their time on their personal agenda.

How many hours did the study find that CEOs work on average per weekday?

The study found that CEOs work an average of 9.7 hours per weekday.

What percentage of weekend days do CEOs work and for how many hours on average?

CEOs work on 72% of all weekend days, averaging about 3.9 hours per weekend day.

Why is downtime important for CEOs according to the study?

Downtime is important for CEOs to get exercise, have a decent amount of sleep, and connect with their family, which contributes to their success.

How do CEOs manage to protect their time for personal needs compared to other employees?

CEOs, being at the top, can manage their time in a way that allows them to organize around family, sleep, and exercise, which most other employees cannot.

What is the role of 'alone time' for CEOs as highlighted in the study?

CEOs need 'alone time' to think and make decisions without distractions. It's a critical time where they are not on email and can focus on strategic matters.

Why is email considered 'poisonous' in managing large organizations according to the study?

Email is considered 'poisonous' because it can be overwhelming and drags people, including CEOs, into the weeds of operational details, distracting them from strategic responsibilities.

How should CEOs work according to the study's findings on leadership?

CEOs should work primarily indirectly through others, using tools like strategy, culture, and organizational processes to guide decision-making by their teams.

What is the importance of having excellent direct reports for a CEO?

Having excellent direct reports is crucial as they are the best leverage a CEO has. If a direct report is not the best they could be, they can become a drain on the CEO.