The over-arching thought-process at board level is one of risk-aversion. That has paralysed some CEOs' decision-making - and could result in missed opportunities.
This, alongside the fact that we're still in a period of economic volatility, means some CEOs continue to use the mantra 'it's an uncertain environment' to delay decisive action.
There are industries where CEOs are more prey to uncertainty than others: in financial services, those who have weathered the financial crisis may simply be glad to have survived. The question for them will be how they re-set their business models for growth, within the context of new regulatory restrictions worldwide.
Meanwhile, CEOs in commodities - energy or natural resources, for example -- appear to be entering a period of sustained growth and will be actively looking for acquisition partners. The commodity boss's challenge will be to capture the market's value while it's on the ascendant, before competitors crowd them out. Then there are the companies in between, which may be bumping along the bottom and struggling to ensure the next quarter looks better than the last. These businesses are being squeezed between declining product prices and rising commodity pric es . Many don't even have any messaging around how the their business will be different in future. They need to identify how to increase growth provided added value to their customers .
They may also start to feel external pressure from private equity houses again: while big PE deals have waned in the past few years, investors will start to see the opportunities inherent in a cautious environment. Even if their business is profitable compared to last year, a CEO may be vulnerable to takeover if they cannot demonstrate a longer-term plan for growth.
This raises another issue influencing CEO decisions now: business leaders with stock options may be concerned about safeguarding their personal wealth. Once they've improved the company's performance, they may not want to wait another year, only to be handed their hat by the board. CEOs - like everyone else -- want to control their destinies. This in turn raises the issue of succession: what if your CEO were to tender his resignation today ? Would you be ready?
Faced with these challenges, CEOs and their boards are now taking a deep and active interest in redefining their strategic direction to grow the business. Once they've got those strategies lined up, they'll be looking at whether they have the right human capital to drive that growth. They'll also be looking for strategic acquisition or merger prospects. The next 18-24 months could be a golden era for M&A activity as a result, but there will be fewer 'big bang' deals, and more strategic ones - smaller, fold-in acquisitions that give a business access to a new market or geography.
Selectively, certain CEOs are waking up to the fact that now is the time for bold moves. Look at Steve Jobs at Apple: he has overseen the launch of ground-breaking consumer products in the past two years. Who but the most avid tech experts would have guessed Apple would be the second highest earner in technology worldwide today, or that it would've exceeded IBM for profitability?
There is a fourth type of CEO that exists in every business cycle - those who are running game-changing enterprises like Google or Zappos.com. They are dynamic and entrepreneurial in the way they manage people and exploit technology. But it's worth remembering: Enron was once considered one of the most innovative businesses in the world; and BP's sustainability drive was changing the face of energy until the Gulf of Mexico disaster. Ultimately, their business models were flawed. CEOs need to ask: is our messaging true, or just a great marketing campaign?
Instead, I look to the 'silent warriors'. These CEOs aren't grabbing the headlines. They are just trying to take their businesses and employees to a better place every day. These are the companies that stand the test of time - businesses like Procter & Gamble, or Unilever or, the classic silent warrior, Berkshire Hathaway. P&G's former chairman, AG Lafley, or Tesco's outgoing leader, Terry Leahy, just got on with it - constantly refining their business model to make it better tomorrow than today.
Keith Meyer, head of global board and CEO practice at global search firm CTPartners