What the Steve Jobs case teaches us about value-added by CEO's (and heads)..

A proposal by Institutional Shareholder Services, a firm that advises large investors on strategy, is calling for the Apple, Inc., Board of Directors to release a written succession plan for the post-Steve Jobs era. Not a bad idea, in my view, but it did start me thinking about leadership, especially the highly visible CEO, and what he or she adds to shareholder value, if anything.

The most potent value seems to come in about equal measure from confidence and policy. Steve Jobs started Apple and became its iconic face. Apple grew when he was at the helm and it struggled without him. Customers, employees and investors have confidence that he knows what he is doing. Schools are more likely to thrive, in our experience, when parents and teachers have confidence in the head of school.

Likewise CEO's and heads set the tone by the policies they adopt, implicitly or explicitly. Jobs essentially mandated that Apple would have cool products, things people would want to buy. This approach--I'm calling it a policy--sets the tone for everything the company does. Heads, too, set the tone by their policies; e.g., stellar academics, great athletics, a whole child approach, etc.

Add the ability to inspire confidence in others and a clear set of policies that will set the tone for success to your selection criteria for a new head.

- Posted using BlogPress from my iPad.