7 Essential Skills Needed to Become a CEO in 2024
Traditionally, CEOs were viewed as extroverted financial experts, top networkers, and masters of self-promotion and risk-taking. While these traits remain valuable, modern companies are now seeking leaders who align with 2024’s business expectations — with many traditional business models being replaced with agile, more progressive ways of working.
Today’s evolving skill set blends both soft and hard skills, positioning CEOs as visionaries for change rather than just authoritative figures. Understanding these essential new skills is crucial for success as a CEO in this modern landscape.
Here, we explore seven of the key skills needed to become a CEO in 2024.
1. Innovative mindset
CEOs with an innovative mindset encourage a company-wide culture of ongoing improvement, growth, and a willingness to embrace change. They inspire their workforce to welcome new ideas, and constantly seek ways to enhance performance to stay ahead of the competition — a refreshing change from the status quo of maintaining outdated practices.
These leaders prioritize creativity and experimentation. This creates an environment where employees — from upper and middle management to junior team members — feel empowered to take risks and propose new ways of doing things.
Being open to innovation is one of the most important ways of growing as a business and a leader. Remaining reliant on ‘tried-and-tested’ approaches can be a barrier to progress, so CEOs should embrace new ideas and develop an inspiring vision.
2. Knowledge of new technologies
Every industry is continually being shaped and disrupted by technological advancements. Take AI, for example, which has completely changed the way businesses are run, for better or worse.
Whether it’s leveraging an AI-powered cost management platform for more effective financial planning or, at a higher level, utilizing corporate governance software for strategic risk management, CEOs must maintain a keen interest in and understanding of these new technologies to keep their businesses agile and competitive.
In this era of rapid technological progress, tech-savvy CEOs lead by example, encouraging an innovative and forward-thinking spirit within their organizations.
3. Interpersonal skills
As a CEO, taking the time to understand employees as people — how they impact a business, and how a business impacts them — is crucial. CEOs should inspire, empower, and enable their teams. This involves fostering a supportive and inclusive work environment where every team member feels valued and heard.
In 2024, having a CEO who understands people as people and not just another cog in the machine goes a long way. The idea of ‘us and them’ (i.e. ‘CEO and senior management vs. employees’) is outdated and not conducive to a happy, productive workplace.
This human-centric approach extends beyond the internal dynamics of the organization, however. CEOs must also consider the broader societal impact of their decisions, ensuring the company’s operations and strategies align with ethical practices and contribute positively to their communities.
4. Collaboration
According to research, developing the next generation of leaders is the top challenge for 55% of CEOs, which makes collaboration even more important for knowledge sharing and development.
As a CEO, fostering a collaborative environment is crucial for harnessing the collective expertise and creativity within the organization. By encouraging cross-department teamwork and open communication, CEOs can break down silos, enhance problem-solving capabilities, and drive innovation.
Collaboration starts with the CEO setting a precedent. This involves creating a culture where every team member feels comfortable sharing ideas, voicing opinions, and contributing to the decision-making process.
CEOs aren’t there to carry out daily operations or understand different skills within teams; encouraging collaboration means being proactive in bridging these gaps. This can be achieved by empowering managers to make more decisions and engaging in regular dialogue with their teams to stay informed about the day-to-day challenges and successes, fostering a sense of connection and understanding.
5. Emotional intelligence
Soft skills play much more of an important role for CEOs now than ever before, and this includes emotional intelligence. This aligns with the aforementioned ‘human-centric’ approach and focuses on being self-aware and empathizing with others. Often as a CEO it’s easy to overlook the impact a job has on employees, or simply how people’s personal lives can impact their wellbeing.
James Timpson, CEO of Timpson’s, is a great example of how a human-centric leadership approach can work. He believes that an organization revolves around its people, their emotions, and their feelings. To achieve financial success, he emphasizes the importance of understanding and addressing these human aspects. Timpson puts this philosophy into practice by continually supporting his employees, assisting them with personal matters such as buying a new car, or covering the cost of dental work to boost their confidence.
Emotional intelligence is a cornerstone of effective leadership in an era of diversity, inclusion, and remote work. CEOs with high emotional intelligence can understand and manage their own emotions while empathizing with the feelings and perspectives of others. This skill is invaluable for fostering inclusive cultures, building strong relationships with stakeholders, and navigating complex interpersonal dynamics within the organization.
6. Openness
CEOs who practice openness foster a culture of trust not just among employees but also among customers and clients. Transparent communication builds confidence and loyalty, as stakeholders feel they are being kept in the loop about the company’s vision, strategies, and performance. This trust is essential for maintaining strong, long-lasting relationships.
From another perspective, openness can also be seen as a CEO sharing themselves with others in the business and demystifying who they are, as CEOs can often be seen as mysterious figures that nobody knows too much about.
By being more open, CEOs can humanize their role, making themselves more relatable and approachable. This can break down barriers and create a more cohesive, supportive, and empowering organizational culture.
7. Personal integrity
Personal integrity is the foundation of effective leadership. A CEO with high integrity is honest, ethical, and consistent in their actions and decisions. This builds a strong sense of trust.
It’s not uncommon for CEOs to storm ahead with plans, not considering the wider impact or how this sets the tone for the business, but this can often have a detrimental effect on morale and productivity.
Adhering to a set of moral principles and maintaining a commitment to doing what is right, even when it is difficult, is what counts. When leaders demonstrate ethical behavior, employees are more likely to act with integrity themselves, knowing that their leaders value and expect honest conduct.
Being a CEO in 2024 requires a fresh perspective and approach. As businesses increasingly move away from the rigid, top-down model of management, they become more progressive, paving the way for breakthroughs. Embracing flexibility, empathy, and innovation allows modern CEOs to lead effectively in a rapidly changing landscape.