The Daily Stat: Why CEO Effectiveness Starts to Decline After Just a Few Years

Are you having trouble viewing this email? If so, click here to see it in a web browser. HOME   |   BLOGS   |   THE MAGAZINE   |   BOOKS   |   AUTHORS   |   STORE RSS   |   Mobile FEBRUARY 25, 2013 Why CEO Effectiveness Starts to Decline After Just a Few Years The average optimal CEO tenure is just 4.8 years, according to a Harvard Business Review article by Xueming Luo of the University of Texas at Arlington and two associates. The study of 356 U.S. companies shows that after a while, CEOs become entrenched and favor avoiding losses over pursuing gains, and their attachment to the status quo makes them less responsive to customer preferences. Long-tenured CEOs are, however, highly skilled at maintaining good employee relations, the researchers say. Source: Long CEO Tenure Can Hurt Performance Share Today's Stat: FEATURED PRODUCT HBR Guide to Managing Up and Across EBook Now Available To achieve your goals and get ahead, you need to rally people behind you and your ideas. But how do you do that when you lack formal authority? Or when you have a boss who gets in your way? Or when you're juggling others' needs at the expense of your own? By managing up, down, and across the organization. Your success depends on it, whether you're a young professional or an experienced leader. ADVERTISEMENT Follow the Stat: BEST SELLERS HBR's 10 Must Reads: The Essentials HBR's 10 Must Reads Boxed Set HBR Guide to Persuasive Presentations HBR Guide to Better Business Writing HBR Guide to Getting the Right Work Done PREVIOUS STATS Slow Internet Speeds in China Hamper Business Your Openness May Bode Well for Your Long-Term Job Prospects Even Government Workers Will Eventually Lose Their Pensions Big Food Companies Are Training You to Like Less Salt Politically Conservative Shoppers Shun Generics and New Products A Nearby Meth Lab Depresses the Value of Your Home Number of Users Spending Less Time on Facebook Outweighs Number Spending More Time How Long Do You Expect to Live? It Depends on How You're Asked Traffic Eases in U.S., and GPS Plays a Part Criminals Give Up on Robbing Banks and Head for the Internet Introducing Mobile ManageMentor Powered by the proven content of Harvard ManageMentor™ iTunes >> Android >> UNSUBSCRIBE   |   UPDATE YOUR PROFILE   |   MORE EMAIL NEWSLETTERS   |   PRIVACY POLICY Was this email forwarded to you? If so, sign up to start receiving your own copy. ABOUT THIS MAILING LIST You have received this message because you subscribed to the "The Daily Stat" email newsletter from Harvard Business Review. If at any point you wish to remove yourself from this list, change your email address, or sign up for other email newsletters and alerts, please visit the Harvard Business Review Email Newsletter Preference Center. OPT OUT If you do not wish to receive any email messages from Harvard Business Review, click here. ADVERTISE WITH HBR This enewsletter is read by thousands of decision makers every day. Learn more about connecting your brand with this audience. Copyright © 2013 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing | 60 Harvard Way | Boston, MA 02163 Customer Service: 800-545-7685 (+1-617-783-7600 outside the U.S. and Canada)