The Fine Art of Balanced Executive Communications
As a CEO or member of the Executive Leadership Team (ELT), your ability to communicate effectively often times makes the difference between success and failure. How you communicate sets the tone for the entire company. While you want to get people excited about your vision and goals, it's crucial to find the right balance between preaching inspirational messaging and providing an accurate view of the opportunities and challenges ahead of the company.
Two weeks ago I wrote a blog post entitled “Startup Leader Positivity Versus Realism”. (Read it here.) A couple of readers shared their views directly with me (hat tip to Jero, in particular) and asked me to dive a little deeper and offer some helpful tips. To wit …
Many leaders fall into the trap of overpromising – especially by painting an overly rosy picture of projected results. (Your ARR, for example.) When the actual outcomes inevitably fall short, it damages credibility and trust. The countervailing point is communicating too conservatively can fail to inspire teams to achieve their potential.
The sweet spot lies in the balance. There is an expression that captures that balance called "under-promising and over-delivering." This involves setting expectations realistically based on data and experience and being up-front about potential hurdles without dwelling on the negative. It’s about providing a compelling vision while providing a roadmap outlining the incremental steps to getting there.
As CEO or member of the ELT, a balanced communication style is essential for success. Here are some tips to achieve that desirable balance:
Avoid exaggerated hype and hyperbole. Stick to facts you can back up (and source).
Clearly explain assumptions and methodology behind projections.
Highlight opportunities without downplaying risks and challenges.
Celebrate wins but remain focused on continual improvement.
Frequently revisit timelines and adjust as needed. Changes aren't failures, it’s called making adjustments.
Default to transparency rather than trying to hide bad news.
The end goal should always be to build a culture of trust and accountability. With realistic communications, startup teams will feel empowered to execute on the vision, without fear of overpromising.
Getting the balance right takes practice - and the courage to admit when results don't meet projections. But it ultimately sets up a virtuous cycle where leadership, teams and stakeholders align around achievable goals. The payoff is an empowered organization that understands the big-picture and is positioned to achieve sustained success.