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Where Delegation fails: Five things only the enterprise CEO can do to build new business
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Where Delegation fails: Five things only the enterprise CEO can do to build new business

Business building is increasingly important for company resilience, and CEOs are uniquely suited for the job. Here are five tasks that CEOs can undertake to build successful new businesses.

McKinsey, 2022


Editorial Rating

8

Qualities

  • Analytical
  • Applicable
  • For Experts

Recommendation

When a parent company builds a new business, it increases its growth and resilience – if all goes well. Not surprisingly, data from McKinsey, as reported by consultant Shaun Collins and partners Ari Libarikian and Kurt Strovink, show that in 2021 more than half of CEOs saw new-business building as among their top three priorities. McKinsey’s researchers examined real-life cases to identify five new-business building tasks CEOs should not outsource to anyone else. These are the areas in which chief executives can bring the unique strengths of their position to bear and make a unique impact.

Take-Aways

  • Corporate CEOs need to set high goals and focus on becoming serial new-business builders.
  • Chief executives must protect the independence and allocated funding of a new business.
  • The CEO should find the right person to lead a new business.

About the Authors

Shaun Collins is a consultant in McKinsey’s New York office. Ari Libarikian and Kurt Strovink are senior partners at McKinsey.


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