Building a new Executive Leadership Team (ELT): A CEO’s guide

For any CEO, constructing a new Executive Leadership Team (ELT) is a pivotal moment, offering immense potential to drive success, foster innovation, and position the organisation for long-term growth. 

Several of our CEO clients have said the best advice (and action) they have ever taken is first making sure that the people around you are the best people to solve the challenges of the future. 

Every CEO is tasked with the same mission, to take the business into the next horizon.  Achieving this is largely dependent upon having a leadership team that is both committed to the “North Star” and highly capable of delivering on it.    
 
In this blog, we’ll explore why building a new ELT is essential and how CEOs can harness its power effectively for sustainable business success. 

Key reasons for building a new ELT

Jim Collins is famous for his theory: First Who, Then What – the belief that Great vision without great people is irrelevant. He states -

 “When new CEOs commence, they have to work out the capability of the individuals on the ELT and if they are the people who can adapt and transform to achieve excellence into the future.  If the CEO determines they are not, then the exercise of rebuilding the organisation starts.” - Jim Collins

Breaking this down further, our communities of CEOs and Chairpersons provide us with more detail and the aspects that a new CEO might consider.   

Enhanced leadership capabilities 

Again, going back to the concept of having the right people, they must have strong leadership capabilities.  This builds a pipeline of future leaders and ensures the ELT is well-equipped to navigate complex challenges and uncertainty. 

Strategic capability 

Handpicking individuals whose skills, experiences, and perspectives match the organisation’s current objectives helps drive cohesive decision-making and seamless execution.  This sounds straight forward when the strategy is already clear. 

However, there are many instances where the strategy needs further work and this is where the importance of strategic capability on the ELT is vital.  As businesses evolve, so do their priorities.  The ELT can help shape the strategic plan and more importantly at ELT level, know how to operationalise it.   

Innovation or transformation

CEOs understand the importance of innovation in today’s competitive business landscape. By assembling a diverse leadership team, you bring in fresh ideas that can drive creativity and foster continuous improvement.

For instance, when Apple restructured its ELT in 2007, the team developed the revolutionary iPhone, a product that changed the tech world. Could building a new ELT ignite the next innovation for your organisation?

Reinforcing culture and values

Selecting the right individuals for the ELT allows a company and CEO to reinforce company culture and values. By choosing leaders who embody the organisation’s ethos, trust, transparency, and accountability are embedded across the company. CEOs can use this opportunity to establish a culture that supports long-term success. 

Remain competitive

In an unpredictable business environment, adaptability and resilience are key to success.  One great skill of a CEO is to be able to “see into the future” and anticipate the industry changes and disruption ahead.   Reshaping an ELT can ensure organisational readiness matches the pace at which technology and automation are changing the business landscape. 

How CEOs can build a successful ELT

In working with CEOs for the last 20 years, there are common themes that unlock the potential of the ELT.  The power of the Executive Leadership Team lies in leadership capability, strategic alignment, innovation (or transformation) and adaptability. By focusing on these areas, CEOs can unlock the full potential of their ELT and drive sustainable growth for their organisation. 

Setting clear objectives

Building an effective ELT involves a multifaceted approach that requires thoughtful planning and alignment. In our experience working with CEOs to rebuild their ELTs, setting clear objectives from the outset is essential. By defining success criteria and regularly evaluating the team's performance, leaders can ensure alignment with strategic goals and identify opportunities for growth.

This proactive approach helps maintain focus on priorities and fosters accountability among team members, ultimately driving continuous improvement.

Fostering innovation

CEOs we work with may need to bring new people to the team who can bring new ideas and experiences.  Fostering innovation is a cornerstone of a successful ELT. A successful ELT will feel empowered to think creatively and challenge the status quo.

Encouraging diverse perspectives and the psychological safety to have open dialogue can lead to transformative breakthroughs. This might involve organising regular brainstorming sessions, workshops, sprints or retreats that focus on creative problem-solving and innovation.   

Investing in L&D

Investing in leadership development equips team members with the necessary skills for long-term success, while clear communication of expectations ensures everyone is aligned with the company's mission.

This might include leadership coaching, mentorship programs, or access to external courses and seminars. Promoting a culture of continuous learning keeps the leadership team adaptable and prepared for emerging business challenges.  

If you're looking for advice on building your current leadership team, investing in development, and fostering a culture of innovation to position your organisation for future success, reach out to Molly Green, Director of our Executive Search Practice.