Executive Mentoring: Lonely at the Top No More

A version of this article originally appeared in Directors and Boards.

One of a board's most important responsibilities is setting up their new CEO for success, ensuring the arduous work of the succession and selection process truly pays off.

This is becoming a critical duty, as today's CEOs face an increasingly complex operating environment—tasked with delivering on the growing expectations of stakeholders, while also navigating uncertainty in a world spinning faster than ever.

We know many CEOs are feeling overwhelmed and underprepared. Our research shows that CEOs' perceptions of their leadership team's readiness to face key external threats, such as uncertain economic growth, key talent availability, tech change, geopolitical uncertainty, and increased regulation, has begun to wane, falling an average of 5.6 percentage points in the past six months.

As boards know all too well, the runway CEOs have to achieve success is short. In these high-stakes moments, how can boards give their CEOs the best chance of succeeding? And what can be done to prepare the next generation of CEOs for the role?

Increasingly, we see boards turning their attention toward executive mentoring as a tool to support CEO transitions. Executive mentors can offer invaluable advice that CEOs will struggle to find elsewhere. These mentors are typically leaders who have sat in the CEO seat, faced similar challenges, and know how best to guide companies through inevitable storms.

We've seen how powerful executive mentoring can be for some of the most well-known CEOs. Facebook's founder and CEO Mark Zuckerberg, for example, shared that Apple founder Steve Jobs helped him reconnect with his original mission when things weren't going so well for Facebook in the early days. Bill Gates credits Warren Buffett as someone who influenced him to not only prioritize and manage his time more effectively, but also to make his mark in philanthropy on global issues like poverty and disease.

Of course, mentoring stands the greatest chance of success when CEOs have a growth mindset. While CEOs may feel like they've reached the pinnacle of their careers when they take the top job, the learning curve is far from over. They must grasp the idea that “what got you here won't get you there.” The good news is that, overall, CEOs appear ready to embrace mentorship: 71% said mentoring could have been better incorporated during their transition into the role.

Here, we set out four ways that mentors can set leaders up for success in the short and long term.

Accelerating the performance of new-in-role CEOs

CEOs are operating in a high-paced, high-pressure environment, one where failed CEO appointments are becoming more frequent. In 2023, more than 15% of CEOs appointed to the world's largest companies were considered failed appointments—meaning they lasted less than two years in the role—up from an average of 9.6% since 2019.

No CEO enters the role as the perfect package. CEOs need to keep raising their games—and have their thinking constructively challenged—for the good of their organizations. This is where an executive mentor is key. A mentor can challenge a CEO's viewpoint, offer a new perspective, and forensically pinpoint areas where the CEO can increase performance (for example, how to resolve a crisis, spearhead a takeover, or identify markets to accelerate growth).

Easing loneliness and aiding decision-making

The CEO role is incredibly lonely. Not only are there no longer peers to spar with intellectually, but they are often unable to share the ins and outs of what they're working on with anyone. In a 2012 Harvard Business Review study, half of CEOs reported feelings of loneliness and 61% believed that it hindered their performance.

Executive mentors can provide a sounding board in moments of loneliness, a place to share ideas before they are put in front of the board or C-suite team. When a mentoring relationship is fostered correctly, CEOs will gain full trust in their mentor. Mentors will instill the confidence to navigate complex trade-offs to reach the right decision. After receiving executive mentorship, 69% of CEOs said that they were better at making decisions.

Mitigating risks and recovering from failure

While CEOs are unlikely to ever have all the answers in today's rapidly evolving business environment, enlisting an executive mentor can help them anticipate issues with greater accuracy. CEO data from Harvard Business Review, for example, found that 84% of CEOs credited mentors with helping them avoid costly mistakes.

A critical part of a mentor's role is to not just mitigate risks but also to hold a mirror up to the CEO. They can identify any weaknesses and blind spots, increase their self-awareness amidst missteps and make them accountable for their decisions or behaviors. Very few people will feel comfortable having those conversations, but a mentor has an invaluable, unbiased perspective, which often means it's well-received by the CEO. A mentor can also work with a CEO to effectively recover from a mistake, learn from it, and stop it from happening again.

Providing high-potential leaders with the vital ingredients to succeed

Mentoring isn't just critical for CEOs who are new to the role, but also for high-potential leaders who are being considered for succession. Future CEOs should step into the role with confidence amidst a smooth transition. One way of doing this is through guided mentorship from someone who has walked a similar path to the top. Mentors can not only position candidates for success in securing the top seat, but they can also transfer critical tacit knowledge on the more intangible aspects of leadership, like making decisions amidst uncertainty, managing complex team dynamics, and having uncomfortable conversations.

There's a knock-on benefit, too: Sending a clear signal to potential CEO candidates and next-generation leaders that the organization is committed to their development will aid retention and prime a pipeline of future-ready CEOs.

Ultimately, by investing in executive mentoring, directors are setting the stage for sustained success in today's dynamic business environment. The impact of executive mentoring extends far beyond individual leaders. It permeates the entire organization, creating a culture of continuous improvement and driving long-term success.

Authors

Symon Elliott leads Russell Reynolds Associates' Global CEO Mentorship Program. He is based in London.