McKinsey’s article identifies the distinct mindsets and practices that differentiate excellent CEOs from merely good ones. It’s based on extensive data analysis (7,800 CEOs across 70+ countries) and decades of firsthand experience working with CEOs.
Below is an expanded, structured, and leadership-ready version of the Model of CEO Excellence, staying faithful to McKinsey’s framework while deepening the why, how, and implications behind each responsibility.
I’ve written this in a way that works for senior leaders, pastors, founders, and executive teams, not only corporate CEOs.
Model of CEO Excellence
Six Core Responsibilities of Exceptional Leaders
(Based on McKinsey & Company research)
McKinsey’s research shows that excellent CEOs do not succeed because of personality, charisma, or industry luck. They succeed because they consistently apply six core responsibilities, each grounded in a distinct mindset and expressed through repeatable practices.
This model helps leaders move from reactive management to intentional leadership.
1. Setting THE DIRECTION
Mindset: Focus on beating the odds — not managing averages
Excellent CEOs do not aim to be “slightly better.”
They think in terms of outperformance, understanding that strategy is about choices, not intentions.
They accept that most strategies fail—not because of execution alone, but because leaders underestimate uncertainty, competition, and structural disadvantage. Therefore, they design strategies that increase the probability of winning, not just surviving.
Key Practices
1. VISION: Reframe what “winning” means
- Winning is not defined by internal comfort, growth for growth’s sake, or industry averages.
- Excellent CEOs redefine success by:
- Customer value creation
- Sustainable differentiation
- Long-term impact
They ask: “Where can we win uniquely — and where should we not compete at all?”
2. STRATEGY: Make bold strategic moves early
- Research shows that bold moves—such as reallocating capital, restructuring portfolios, or making acquisitions—significantly increase long-term performance.
- Excellent CEOs act early, before urgency forces poor decisions.
They understand: Delay is often riskier than boldness.
3. RESOURCE ALLOCATION: Actively reallocate resources
- Top CEOs continuously shift capital, talent, and attention toward the highest value opportunities.
- They avoid incrementalism and legacy protection.
- Resource allocation becomes a living process, not an annual ritual.
Strategy is not what you say—it is what you fund.
2. Organizational Alignment
Mindset: Treat people and culture with the same rigor as financial performance
Great CEOs know that strategy fails without alignment. Culture is not “soft”; it is a hard driver of results.
They treat organizational health with the same discipline as KPIs and financial metrics.
Key Practices
1. CULTURE: Manage performance and health together
- Performance without health leads to burnout.
- Health without performance leads to complacency.
- Excellent CEOs track both with equal seriousness.
They ask: Is our organization capable of sustaining excellence?
2. Match talent to value creation
- Critical roles receive disproportionate attention.
- Talent placement is strategic, not political.
- They invest their best people where value is created—not where hierarchy dictates.
3. ORGANIZATION DESIGN: Build agility without chaos
- Structures are designed to enable speed, not bureaucracy.
- Accountability is clear.
- Decision rights are well defined.
Stability provides trust; agility enables innovation.
3. Leading the Top Team
Mindset: Team psychology matters more than mechanics
The best CEOs understand that leadership teams succeed or fail based on trust, clarity, and behavioral norms, not intelligence alone.
Key Practices
1. Shape effective decision processes
- Encourage debate, not politics.
- Separate discussion from decision-making.
- Create clarity on who decides what.
2. Align behavior with vision
- Leaders must model what they expect.
- Culture is formed more by actions than speeches.
What leaders tolerate becomes culture.
3. Create psychological safety
- Team members must feel safe to speak truth.
- Healthy dissent improves decision quality.
- CEOs protect candor—even when uncomfortable.
4. Board Engagement
Mindset: The board is a strategic partner, not a compliance requirement
Excellent CEOs treat the board as a source of wisdom, challenge, and long-term perspective.
Key Practices
1. AGENDA: Co-create forward-looking agendas
- Shift board time away from reporting toward strategic dialogue.
- Focus on future risks, growth, and transformation.
2. RELATIONSHIP: Build authentic relationships
- One-on-one trust increases board effectiveness.
- Strong relationships enable constructive challenge.
3. CAPABILITIES: Strengthen board capability
- Ensure the board has the right skills for future challenges.
- Support onboarding and continuous learning.
5. Connecting with External Stakeholders
Mindset: Purpose precedes performance
Exceptional CEOs lead with meaning, not messaging. They understand that trust is built when stakeholders sense authenticity and coherence.
Key Practices
1. Prioritize high-impact stakeholders
- Not all engagement is equal.
- CEOs focus on customers, investors, regulators, and communities that shape long-term outcomes.
2. Communicate outcomes, not activities
- Stakeholders care about results, not busyness.
- Clear storytelling builds confidence and credibility.
3. Align daily decisions with long-term purpose
- Purpose is not a slogan—it is a decision filter.
- Strategy, culture, and ethics must align.
6. Personal Working Norms
Mindset: Do what only the CEO can do
Excellent CEOs fiercely protect their most limited resources: time, energy, and focus.
Key Practices
1. Structure the CEO office for leverage
- Delegate operational details.
- Focus on high-impact, high-judgment decisions.
2. Manage energy, not just time
- Balance intensity with recovery.
- Recognize that leadership is a marathon, not a sprint.
3. Build personal and organizational resilience
- Develop emotional steadiness.
- Model sustainability and clarity under pressure.
Final Insight: What Truly Sets Excellent CEOs Apart
Excellent CEOs are not defined by charisma or brilliance alone.
They are defined by clarity of focus, discipline of execution, and depth of character.
They:
- Think long-term while acting decisively
- Balance boldness with humility
- Align people, purpose, and performance
Great CEOs don’t just lead organizations — they shape systems that outlast them.
Below is an expanded, leadership-level exposition of the Core Mindsets That Distinguish Excellent CEOs, drawn from McKinsey’s research and expressed in a way that works for senior executives, church leaders, founders, and institutional builders.
I’ve expanded each mindset with depth, clarity, leadership application, and reflective insight, while staying faithful to McKinsey’s thinking.
Core Mindsets That Distinguish Excellent CEOs
(McKinsey & Company)
Excellent CEOs are not defined primarily by personality, charisma, or intelligence.
They are distinguished by how they think, interpret reality, and choose where to focus their energy.
These mindsets act as internal operating systems—quietly shaping decisions, culture, and long-term outcomes.
1. Visionary Thinking
Reframing success and making bold bets
Core belief: The future is not something to predict—it is something to shape.
Excellent CEOs do not merely react to trends or manage incremental improvement. They reframe what winning looks like and are willing to challenge conventional assumptions about growth, competition, and value creation.
They understand that:
- Incremental improvement rarely leads to exceptional performance.
- Strategic advantage often comes from redefining the game, not playing it better.
Key expressions of this mindset:
- Reframing success
They ask deeper questions such as:- What does winning truly mean in this season?
- What would bold success look like if we were not constrained by legacy thinking?
- Making bold bets early
Excellent CEOs move decisively when conviction is high—reallocating resources, entering new spaces, or exiting declining ones before urgency forces change. - Seeing around corners
They invest time in sensing shifts in technology, culture, regulation, and customer behavior long before these shifts become obvious.
The future is not something to predict—it is something to shape.
2. Discipline with Flexibility
Treating strategy and culture with equal rigor
Core belief: Discipline and adaptability are not opposites—they are partners.
Excellent CEOs combine executional discipline with organizational adaptability. They resist both chaos and rigidity.
Key expressions of this mindset:
- Rigor in “soft” areas
Culture, values, trust, and leadership behavior are measured, discussed, and managed—not left to chance. - Consistency with adaptability
While strategic direction remains clear, methods evolve as circumstances change. - Structured freedom
Teams operate with clear expectations and accountability, but are empowered to innovate within those boundaries.
High-performing organizations are stable at the core and flexible at the edges.
3. Team Psychology Awareness
Understanding how people think, feel, and interact
Core belief: How people work together determines what they can accomplish.
Excellent CEOs understand that performance is deeply influenced by human dynamics, not just competence or structure.
Key expressions of this mindset:
- Psychological safety
Leaders foster environments where people can challenge ideas, admit mistakes, and speak truth without fear. - Healthy conflict
Productive disagreement is encouraged, not avoided. Alignment follows honest dialogue. - Emotional intelligence at scale
CEOs pay attention to morale, trust, and energy levels—especially during uncertainty or change.
Teams don’t fail from lack of intelligence; they fail from unresolved fear, silence, or misalignment.
4. Board Partnership
Viewing the board as a strategic ally, not a governance obstacle
Core belief: The board’s greatest value lies in foresight, wisdom, and challenge—not oversight alone.
Excellent CEOs cultivate strong, trust-based partnerships with their boards.
Key expressions of this mindset:
- Strategic collaboration
They involve the board in forward-looking conversations, not just historical reporting. - Intentional relationship-building
Individual relationships with board members are nurtured beyond formal meetings. - Capability alignment
CEOs help shape board composition to ensure the right experience and perspective for future challenges.
When trust is high, governance becomes guidance.
5. Purpose-First Stakeholder Engagement
Leading with “why” before “what”
Core belief: People commit to purpose before they commit to performance.
Excellent CEOs understand that trust is built when stakeholders clearly see why the organization exists and how it contributes to something meaningful.
Key expressions of this mindset:
- Clarity of purpose
Purpose becomes a lens for decision-making, not a branding exercise. - Authentic communication
Stakeholders respond to honesty, coherence, and long-term intent—not polished messaging alone. - Alignment of daily actions with mission
Strategy, culture, and operations reinforce the organization’s reason for being.
Purpose gives meaning to pressure and clarity in complexity.
6. Personal Effectiveness
Doing what only the CEO can do
Core belief: Leadership effectiveness begins with self-leadership.
Excellent CEOs recognize that their personal habits, energy, and focus shape the entire organization.
Key expressions of this mindset:
- Intentional use of time
They protect space for strategic thinking, relationship-building, and reflection. - Energy management over time management
Sustainable leadership requires emotional, mental, and physical renewal. - Clarity of role
They delegate broadly and deeply, reserving their attention for decisions that only they can make.
The leader’s inner world eventually becomes the organization’s outer reality.
Final Reflection
What distinguishes excellent CEOs is not genius or charisma—but clarity, courage, and consistency.
They:
- Think long-term while acting decisively
- Balance humanity with performance
- Lead from conviction rather than control
Ultimately, excellent CEOs do not just build successful organizations —
they shape cultures that outlast them.
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