Founder: Turnaround Talk
The role of a CEO is not just about developing strategies and maintaining a well-functioning company. They are the ultimate decision-makers, and the company’s performance, whether good or bad, is a direct reflection of their leadership.
While I have often discussed strategies that CEOs can employ to enhance a company’s performance or efficiency, the mental health component of their job is frequently overlooked. This neglect can have serious consequences, potentially leading to burnout or other health issues.
I recently read an article by Forbes focusing on this in more detail.
Prioritise intentional exercise
The Forbes article points out that regular exercise not only improves your physical health but also improves your emotional resilience and mental health (and performance). A study published in the Journal of Cognitive Neuroscience found that individuals’ memory improved after six weeks of short bouts of interval training lasting 20 minutes.
Lastly, a 2021 study published in Physiology and Behavior found that aerobic exercise could help individuals recover from mental exhaustion through improved cognitive flexibility, motivation, and overall well-being.
Prioritise sleep
Leadership requires peak cognitive functioning, making adequate sleep indispensable. That said, even moderate levels of sleep deprivation, as indicated by a study in Occupational and Environmental Medicine, impair your cognitive abilities, akin to being legally intoxicated. Also, according to research published in the journal Sleep, someone who sleeps 6 hours each night for nearly two weeks had the same mental faculties the next day as someone who pulled an all-nighter.
Lastly, a study published in the Academy of Management Journal found that sleep-deprived leaders display less emotional self-control toward their co-workers. The importance of sleep is magnified tenfold for CEOs, as they are expected to make impactful decisions and lead others in the organisation.
Avoid the superhero syndrome
The article adds that many things will keep CEOs up at night, such as revenue growth, but a fear of failure is at the top of the list, as shared in a CEO survey. CEOs are under constant pressure to succeed and to appear like superheroes.
Image By: Mick De Paola via Unsplash
Unfortunately, with this additional weight, stress, and expectations, many executives will turn to various addictions and substance abuse as a way of coping. Avoid the superhero syndrome by delegating, learning to say no more frequently, trusting your team more, and finding support through family, peer groups, or therapy. Avoid isolation and suffering in silence. Success in life, health, and business requires a village.
Stay connected to purpose
Amidst relentless demands, CEOs must remain anchored to their purpose and vision. According to the Journal of Clinical Psychology, staying connected and reminding yourself of your purpose in life was significantly associated with lower levels of depression and anxiety. Also, staying connected to your purpose has been consistently cited as an indicator of healthy ageing, better resiliency, and emotional recovery from adverse events.
From vision to developing culture, CEOs are the linchpins of organisational success. However, as you navigate the tightrope of modern business, prioritising your self-care and personal well-being isn’t just a necessity but a strategic imperative for organisational success.
Massive fallouts
Some of the world’s biggest scandals may have been caused by corporate burnout and could have been avoided if their CEOs paid attention to their mental health.
The article points out that the Kobe Steel scandal started in October 2017 when the company revealed that it had falsified data about the quality of its aluminium, steel and copper products. These had been used by hundreds of major companies including Toyota, Honda, Subaru and Mitsubishi Heavy Industries, leading to concerns over product safety. The Central Japan Railway Company, for example, found that 310 parts included in its bullet trains did not meet the agreed standards. The scandal led to a major dip in Kobe Steel’s share price and the resignation of CEO Hiroya Kawasaki. The company’s March 2018 report on the scandal found that it had ‘a management style that overemphasised profitability and inadequate corporate governance.
Image By: Jason Goodman via Unsplash
The Enron scandal is undoubtedly one of the most famous corporate scandals of all time. The situation started in early 2001, when analysts questioned the accounts presented in the company’s previous annual report. These accounts used a variety of irregular procedures, which made it difficult to work out how the company was making money – despite it apparently having a foothold in energy, commodities and telecoms among other industries. The SEC began to investigate and discovered that Enron was hiding billions of dollars in liabilities through special-purpose entities (companies it controlled), which enabled it to appear profitable even though it was actually hemorrhaging cash. The company’s share price fell from $90.56 to under a dollar as the crisis unfolded, with Enron forced to file for what was then the biggest chapter-11 bankruptcy in history.
Prioritise mental health
I mentioned earlier that a company’s performance, good or bad, is for the account of its CEO. What is the emotional and mental cost of this?
Robin Nicholson, a regular contributor to Turnaround Talk, served as the CEO of the South African Broadcasting Corporation for a significant period. His personal journey has made him a vocal advocate for top executives to prioritise their mental health. He believes that if a CEO’s role includes being accountable for the company’s performance, they also have a responsibility to manage all aspects of the business, including taking breaks to prevent burnout.
How many corporate scandals could have been avoided in South Africa if CEOs had paid attention to their mental health?
