Stretched Too Thin? Are CEOs happy with how they spend their time?

CEOs must manage a greater array of issues than ever before, yet they have less authority and control. They must manage on multiple time horizons – balancing short-term demands with long-term investments and thinking – and engage with a multi-faceted web of stakeholders whose agendas rarely align. Environmental, social and, at times, political issues now compete for their attention, requiring astute management. Focusing purely on the financial and operational fundamentals of the business is a luxury few CEOs have today.

We at Russell Reynolds Associates wanted to understand how CEOs today allocate their time. Via our 2022 Global Leadership Monitor, we gathered data from close to 200 CEOs, asking them to review a set of activities and grade whether or not they felt they allocated too little, the right amount, or too much time to each activity. We then also asked them to complete the same exercise for a set of stakeholders. In short, we measured CEOs’ perception of the degree to which they effectively allocate their time. From this, we learned that:

• The vast majority of CEOs feel they could spend their time more effectively in at least a handful of places, while a significant minority feel that the bulk of their time could be spend more effectively.
• Notable proportions of CEOs have trouble allocating enough time to activities with a long-term orientation—including setting future strategy, succession planning, and product/service innovation.
• With whom do CEOs invest the least amount of time? Themselves and their families.

75% of CEOs felt they spent the right amount of time on five or more of the nine activities that we tracked, but only 20% said so for seven or more of the activities. A very small proportion (4%) said they spent the right amount of time on all the activities [see figure 1]. Put another way, the vast majority of CEOs feel they are sub optimally spending their time in at least a handful of places while, for a significant minority, the bulk of the activities they focus on are suboptimal.

Figure 1: Number of activities at right amount of time spend

^{N=164 CEOs. “Not applicable” responses excluded from analysis. Data weighted by GDP to create a more representative share of business contribution from each market.}

The picture for stakeholders is similar, if slightly worse. Of the 10 stakeholders we asked CEOs to consider, only 53% thought they allocated the right amount of time to half or more of them. Only 18% of CEOs said that they spent the right amount of time across 8 or more of the 10 stakeholders [see figure 2]. While the distinction between the two constructs – activities and stakeholders – is important, the results are highly correlated (r=.531).

Figure 2: Number of stakeholders at right amount of time spend

^{N=164 CEOs. “Not applicable” responses excluded from analysis. Data weighted by GDP to create a more representative share of business contribution from each market.}

So, where do CEOs struggle to optimally allocate their time?

CEOs are having the most trouble with activities that require long-term orientation, as notable proportions say they spend too little time on them, while hardly any (less than 5%) say that they spend too much time on them. 43% of CEOs say they spend too little time developing long-term strategy, and 48% spend too little time on talent reviews and succession planning. 55% don’t spend enough time driving investments to innovate on the organization’s product/service offer or operational capability, and 67% don’t spend enough time working with other leaders to solve industry wide problems.

While CEOs are less likely to be worried about spending too much time on activities, there are two notable exceptions. 21% of CEOs say they spend too much time managing challenging dynamics with the board, and 16% spend too much time getting their executive team aligned on key issues [see figure 3.]

Figure 3: CEO Activity Time Spend

(% of CEOs reporting too little, the right amount, and too much time spent by activity)

^{N=164 CEOs. “Not applicable” responses excluded from analysis. Data weighted by GDP to create a more representative share of business contribution from each market.}

Stakeholder management is an evident challenge for CEOs. Approximately half say they do not spend enough time with middle managers and front-line employees, and the same is true of next-generation leaders. Significant proportions also feel they do not spend enough time with customers/clients (46%) or key suppliers (43%) [see figure 4]. We also asked leaders to rank the importance of different stakeholder groups by the impact they would have on organizational strategy over the next five years. CEOs ranked employees and customers/consumers first and second, ahead of investors and the board, signaling that CEOs recognize these stakeholders’ influence and importance.

When it comes to time spend, CEOs appear to invest the least amount of time at home. Topping the list of underappreciated stakeholders were “myself” and “my family/loved ones,” with 73% and 60% of CEOs reporting that they underinvested their time here [see figure 4.]

The board was the only stakeholder with whom a notable proportion of CEOs (21%) said they spent too much time. When CEOs are faced with challenging board dynamics, it is critical that time is spent to redress that problem. That said, boards are increasingly pushing management on more and more issues (sustainability, diversity, employee welfare etc.), which can, at times, be interpreted as the board stepping on management’s toes. A strong partnership between CEO and cis crucial to ensuring a productive flow of information that enables the board to advise and challenge management, and for that advice to be well received.

Figure 4: CEO Stakeholder Time Spend

(% of CEOs reporting too little, the right amount, and too much time spent by stakeholder group)

^{N=164 CEOs. “Not applicable” responses excluded from analysis. Data weighted by GDP to create a more representative share of business contribution from each market.}

Implications

There are far more CEOs who say they spend too little time on specific activities or with certain stakeholders than those who feel they spend too much time here. This is unsurprising, as CEOs don’t have a bank of “time overspend” they can easily reallocate to places where they’ve underinvested. Today’s unpredictable economic and political environment make prioritization even trickier, and CEOs can expect novel issues to continually crop up that will demand their attention and run the risk of further derailing agenda.

CEOs should consider the following principles as they look to optimize their time spend for impact.

1. Prioritize stakeholders by issues proximity, not traditional hierarchy

The stakeholder landscape of today is not only prolific; it’s also loud. Thanks to social media, stakeholders – particularly those with historically limited levels of power – have a huge ability to amplify their collective voice. It is important to note that stakeholder groups do not exist in isolation, and the issues that one group cares about can quickly become issues that other groups care about. An employee safety or consumer rights issue, for example, quickly becomes the issue that investors, boards and regulators care about. With that in mind, CEOs need to avoid managing stakeholders based on traditional hierarchy, and instead orient around those stakeholders that are closest to issues of strategic importance. And that orientation needs to be one of investing in understanding and working with the stakeholder group.

2. Evaluate the short-term through the lens of the long-term

Investing sufficient time in developing long-term strategy and putting the building blocks in place that will allow it to take hold is no easy under-taking, especially when faced with short-term operational, revenue, and profit pressures. CEOs need to put themselves in a position (and a mindset) from which they can evaluate the short-term through the lens of the long-term. In order to get there, every CEO needs a well-articulated strategy, underpinned by a clear organizational purpose. Once they have that, they can then scrutinize operational and financial decisions based on whether they are building toward long-term goal(s) or subtly eroding them in favor of short-term gains.

3. Rely on others

Few CEOs today have the luxury of succeeding simply because of their deep industry experience, or by being the heroic leader who does it all and pilots the plane by him or herself. Organizations today are simply too complex, and the external environment and stakeholder landscape is too diffuse. CEOs must build teams around them with diverse skill sets and experience, that can work together effectively as a top team, and to whom agency and accountability is delegated.

4. Subtract, subtract, subtract

People’s natural tendency is to do more. Whether one is motivated by a desire to manage risk by having visibility into as much as possible (understandable, given the world leaders operate in today), or the fear of missing an opportunity, the result for many is being spread too thin. One of the most powerful paths to impact and progress is subtraction. By deliberately streamlining and simplifying things, CEOs can not only bring greater clarity and focus on their organization’s core mission; they can also ensure that they are effectively focused in its pursuit.

5. Create space to recharge

CEOs must abide by the “airline oxygen mask” principle. In an emergency, you must put on your own oxygen mask before you are able to help your fellow passengers. Investing in self-care and relationships with loved ones that allow you to recharge mentally and physically is critical if one is to live up to the rigors of the CEO role.

Authors

Tom Handcock leads RRA’s Center for Leadership Insight. He is based in London.

Todd Safferstone co-leads RRA’s Strategy & Excellence function. He is based in New York.

Dean Stamoulis is a senior member of RRA’s Board Consulting and Advisory Practice. He is based in Atlanta.

Acknowledgments and further reading

The authors would like to thank their colleagues Peter O’Brien and Stephen Langton for their input on designing the survey questions.

Additionally, the authors wish to thank the 164 CEOs and over 1,500 leaders from RRA’s global network who completed the 2022 Global Leadership Monitor. Their responses to the survey have contributed greatly to our understanding of leadership in 2022 and beyond.

Access the full 2022 Global Leadership Monitor: Preparing Leadership for Tomorrow’s Critical Issues here.