Transcription
20201GUIDE TO CEO PEER NETWORKS 2019 Chief Executive Group, LLC All Rights Reserved.
2GUIDE TO CEO PEER NETWORKSTABLE OF CONTENTSWhat are CEO peer groups?3Types of CEO peer groups5Benefits of CEO peer groups8Why member size matters12Why industry focus matters14Who should join CEO peer networks17Leading peer group profilesChief Executive Network19EO20G10021Vistage22YPO23Comparison of leading Peer Networks 2020 Chief Executive Group, LLC All Rights Reserved.24
3WHAT ARE CEO PEER GROUPS?Interchangeably called CEO peer groups or networks, these organizations generally arrange regular meetings inconfidential environments where CEOs can share ideas, best practices, experiences and advice. High performing executivesvalue the perspective of other leaders, as well as the wisdom that comes from the practical experiences learned by others insimilar circumstances.It is truly lonely at the top: most CEOs do not have “safe”environments where they can share their concerns. CEOsoften feel that any public show of vulnerability or uncertaintyrisks losing the confidence or respect of their boards ofdirectors, employees or customers. Rightfully, most CEOsare reluctant to open up to consultants or other subjectmatter experts because these vendors have conflictinginterests (after all, they live off client fees, and succeedmaximally when they create client dependency).Furthermore, people who haven’t walked in a CEO’s shoesoften do not have the perspective to balance competinginterests that CEOs need to weigh, which can includeemployee interests and morale, investor demands, customerfocus and the ever-present tension between growth andprofitability.For these reasons, CEOs often make the best advisors to other CEOs,and an increasing number of CEOs find that peer groups are the bestway to obtain such perspective. 2020 Chief Executive Group, LLC All Rights Reserved.
4“WE NOW ACCEPT THE FACTTHAT LEARNING IS A LIFELONGPROCESS OF KEEPING ABREASTOF CHANGE.”PETER DRUCKER 2020 Chief Executive Group, LLC All Rights Reserved.
5TYPES OF CEO PEER GROUPSCEO Peer Groups can be meaningfully categorized as either local or national groups.LOCALNATIONALLocal groups are convenient: they meet in a nearbylocation, and are typically comprised of members fromyour community. Relationships with local peers oftenlead to social relationships. The downside is that your peergroup is limited to a small pool of potential members,defined primarily by proximity to one another.National groups have the relative inconvenience ofrequiring travel, though they often meet less frequentlythan local groups. On the upside, nationally-organizedCEO peer groups may feature expert speakers orresources that might not be available as frequently inlocal groups.Local groups typically consist of a range of companysizes, types and CEO backgrounds. In mixed-sizedgroups, CEOs running smaller companies often like tolearn from the experiences of larger-company CEOs.On the other hand, larger company CEOs are, in suchsituations, often left unsatisfied as they benefit mostfrom interaction with peers who run companies with acomparable level of complexityNational groups may have higher quality peers asmembers are selected from a larger pool. Anotherlarge benefit to nationally-organized groups is that theymay be industry-specific, providing each member withexpertise more closely related to his/her own challenges. 2020 Chief Executive Group, LLC All Rights Reserved.
6TYPES OF CEO PEER GROUPSCEO Peer Group meetings are either Professionally or Member facilitated.MEMBER FACILITATEDWhile they have national staffers, several CEO peer networks are actually runby the members at the local level. This means it’s up to each member to “take aturn” as host, agenda-setter and facilitator to their group (sometimes for as longas for 12 or 24 month “terms”).PROFESSIONALLY FACILITATEDOther CEO peer group meetings are run by professionals who plan meetings,organize member communications and facilitate discussions.Professional facilitators are trained to get to the root of issues, keep discussionson track and efficient, prevent anyone from dominating the discussion andfocus on creating “take-aways” that the members are looking for. 2020 Chief Executive Group, LLC All Rights Reserved.
7“EXCELLENCE IS NOT AN ACTBUT A HABIT.”ARISTOTLE 2020 Chief Executive Group, LLC All Rights Reserved.
8BENEFITS OF CEO PEER GROUPSMembers report multiple benefits to CEO Peer Groups.1IMPROVE THE GROWTH AND PROFITABILITYOF YOUR ORGANIZATION2OBTAIN ACCURATE BENCHMARKS AND BESTPRACTICES ON KEY ISSUES3PROVIDE OUTLET TO CONTINUOUSLY LEARNAND IMPROVE IN CONFIDENTIAL SETTING4 2020 Chief Executive Group, LLC All Rights Reserved.TIME AND PLACE TO WORK “ON” VS. “IN”YOUR BUSINESS REGULARLY
9BENEFITS OF CEO PEER GROUPS5DEVELOP FRIENDSHIPS AND NETWORKS WITH OTHER CEOSTHAT ENRICH YOUR PROFESSIONAL AND PERSONAL LIVES6EXPOSURE TO NEW WAYS OF DOING THINGS7BENEFIT FROM THE HARD-WON LESSONSAND EXPERIENCE OF OTHER LEADERS8 2020 Chief Executive Group, LLC All Rights Reserved.RECEIVE HONEST ADVICE AND FEEDBACK FROMPEERS WHO HAVE NO CONFLICT OF INTEREST
10BENEFITS OF CEO PEER GROUPSFaster Growth (On Average)Members of Peer Networksexperienced average revenuegrowth rate just above 5% lastyear compared to an industryaverage of only 1.62% -- morethan 200% faster growth. 22.5%More ProfitableMembers of Peer Networksenjoyed operating margins of22.6% last year vs. an industryaverage of only 10.26% --morethan twice the profitability.Overall PerformanceExecutives who set asidethe time to attend industryspecific meetings in orderto exchange best practicesand work on their businessesexperienced dramaticallysuperior operating results. 2020 Chief Executive Group, LLC All Rights Reserved.10.3%5.1%1.62%REVENUE GROWTHPeer Network MembersPROFIT MARGINSIndustry AverageSource: Stein Partners Study of Chief Executive Network Members Vs. Their Industries
11“IT’S FINE TO CELEBRATE SUCCESS,BUT IT IS MORE IMPORTANT TOHEED THE LESSONS OF FAILURE.”BILL GATES 2020 Chief Executive Group, LLC All Rights Reserved.
12WHY MEMBER SIZE MATTERSTo the uninformed observer (and the media), it appears that all CEOs do the same thing: run an organization.But any real understanding of business recognizes the significant differences faced by CEOs of different-sized organizations. 10MThe smallest businesses almost alwaysrequire a CEO to actively DO manyof the functions needed on a day-today basis. Some days’ tasks may beas mundane as ordering supplies andinterviewing job candidates, as well asparticipating in front-line, customerfacing roles. Outside capital is oftennon-existent. As a business growsand matures, the CEO must adapt andchange his/her style and role (e.g.,develop and document processes,upgrade talent in high impact areas,and establish personal relationshipswith key customers). 2020 Chief Executive Group, LLC All Rights Reserved. 10 to 100MThe lower-mid-market company CEO(annual revenue 10- 100 million) isno longer fighting for survival, andnow faces strategic planning witha longer time horizon. With basicprocesses established, this CEO may beconsumed with issues like quality andefficiency, or growing new marketsor products to provide diversification.Capital becomes available at this size,and the CEO must think strategicallyabout partners and alliances. Talentissues are still critical and consumeincreasing time even as the CEOdelegates to and upgrades key people. 100Mto 1BAn upper-mid-market CEO (annualcompany revenue 100- 1 billion)faces many of the same challengesas a large-company CEO, but withoutthe same resources. This places addeddemands on the individual, as theymust assume additional responsibilityin key functions like strategicplanning, corporate finance, mergers/acquisitions/divestitures, internationalissues, talent development andmanagement, technology and more. 1B The large company CEO (annualrevenue 1 billion ) is typicallyengaged in strategic issues overa long time frame. This CEO mustoften deal with questions like whichbusiness lines to invest in, harvest ordivest, how to motivate, groom andattract up-and-coming talent and keyexecutives, how to deal with investorsand/or regulators, and more. Giventhe size and scale of this organization,every word uttered by this CEO isclosely scrutinized and parsed, withinteractions between the CEO andaverage workers being infrequent.
13KEY POINTThe size of the enterprisesbeing run by peers in yourgroup will directly impactyour ROI in membership—inboth time and money.Meeting with peers whorun comparably sizedenterprises—and face similarchallenges—can acceleratevalue and time efficiency. 2020 Chief Executive Group, LLC All Rights Reserved.
14WHY INDUSTRY FOCUS MATTERSWhen mixed with CEOs from a variety of industries, every meaningful conversation requiresbackground explanations of industry norms, competitive dynamics, technological threats, andeven language. Key business drivers and metrics vary widely by industry, so evaluate a potentialpeer group’s real ratio of “explaining” to “insight”. 2020 Chief Executive Group, LLC All Rights Reserved.
15KEY POINTYou will likely receive thehighest quality, highestquantity insights aboutyour business from noncompeting industry peers. 2020 Chief Executive Group, LLC All Rights Reserved.
16“AN EXPERT IS A PERSON WHOHAS MADE ALL THE MISTAKESTHAT CAN BE MADE IN A VERYNARROW FIELD.”NIELS BOHR 2020 Chief Executive Group, LLC All Rights Reserved.
17WHO SHOULD JOIN PEER NETWORKS?CEO peer groups are not for every leader. To benefit, a leader must have the following characteristics:COMMITMENT TOIMPROVEMENTThose who believe thatholding a CEO title is theend of a journey shouldprobably not participate.On the other hand,members who valuecontinuous learning andbelieve every CEO mustinvest in their ongoingprofessional developmentmake excellentcandidates. 2020 Chief Executive Group, LLC All Rights Reserved.HUMILITYPeer group membersmust demonstrate awillingness to sharetheir personal triumphs—and, as importantly—their failures. Hard-wonexperience (good andbad) is what providesdepth and meaning forleaders of substance.WILLING TO MAKETIME COMMITMENTConsistent participationis often an importantingredient in bondingpeers and buildingthe trust required todiscuss key issues. AllCEOs are busy, andprospective membersin any group shouldview participation as apriority.SELF-AWARENESSIn addition to improvedorganizationalperformance, successfulmembers aim to increaselevels of satisfaction andperformance in theirown work as well as thatof their employees, theircustomers and investors.
18LEADING CEO PEER NETWORK PROFILESChief Executive Network19EO 20G100 21Vistage 22YPO 231Chief Executive Network is a division of Chief Executive Group and shares the same parent company as Chief Executive magazine 2020 Chief Executive Group, LLC All Rights Reserved.
19CHIEF EXECUTIVE NETWORK (CEN)9 West Broad Street, Suite 430 Stamford, CT 06902 785-832-0303 ChiefExecutiveNetwork.com e: rob@chiefexec.comMembership count:600Personal membership criteriaMust be a CEO, President, orBusiness Owner.Company membership criteria:Most members run companieswith 5 million to 500 million inrevenues and are grouped withCEOs in their industry (who are notcompetitors) and size range.Time Commitment Required:Cost 2020 Chief Executive Group, LLC All Rights Reserved.BACKGROUNDAfter leading numerous CEO groups, organizational expert Dr. Ronald E. Wiley came to therealization that the take-home value of peer meetings dramatically increased when CEOs metwith peers who were in their industry (but not competitors) and ran similarly sized companies.Industry focus gave CEOs not only outside perspective, but also specific, actionable ideas basedon directly relevant, real-world experience. Chief Executive Network (CEN) was launched on thisprinciple in 1990, and receives accolades from members for practical peer feedback on criticalissues. National industry groups meet several times per year in convenient, airport-hub locationsto maximize the return on time invested. CEN is rolling out local CEO peer groups in 2020 as well.INSIDER INFOWhile serving a variety of industries, CEN has particular strength in manufacturing, distribution,tech, software, architecture, engineering and construction industries. CEN groups don’t exist forevery industry, so check if they have a network for your specific industryWHAT SIZE COMPANIES DO THEY PRIMARILY SERVE?Mid-Market ( 10 Million to 1 Billion)UNIQUE ELEMENTSGrouped With Non Competing CEOs In Your Industry and Size Range
20ENTREPRENEURS’ ORGANIZATION (EO)500 Montgomery Street, Suite 700 Alexandria, VA 22314 703-519-6700 eonetwork.org e: info@eonetwork.orgBACKGROUNDFounded in 1987 by a group of young entrepreneurs, EO enables small and large businessowners to learn from each other, leading to greater business success and an enriched personallife. Their mission is to support entrepreneurial education and engage entrepreneurs to learnand grow. They offer resources in the form of events, leadership-development programs, anonline entrepreneur forum, and business owner education opportunities, among other resourcesdesigned for business growth.Membership count:10,000Personal membership criteriaMust be a founder, co-founder,owner or controlling shareholder ofa companyCompany membership criteria:Company must gross at least 1million annually.Time Commitment Required:Cost 2020 Chief Executive Group, LLC All Rights Reserved.INSIDER INFOWhile EO’s 131 chapters across the US provide an extensive network of entrepreneurs,participation in the organization is primarily limited to local chapter meetings. It is important tokeep in mind that each chapter is typically different in the fact that the size of individual chapterswill vary depending on how long they been established in a given city.WHAT SIZE COMPANIES DO THEY PRIMARILY SERVE?Smaller Companies (Under 5 Million)UNIQUE ELEMENTSEntrepreneurs Only
21G100630 Fifth Avenue, Suite 3210 New York, NY 10111 212-332-6373 G100.com e: G100@G100.comMembership count:*****Personal membership criteriaInvitation only extended to CEOsand Chairmen.Company membership criteria:Only large, global companies arewelcome in G100.Time Commitment Required:Cost 2020 Chief Executive Group, LLC All Rights Reserved.BACKGROUNDG100 was formed in 2005 when two separate organizations, G100 and Six Sigma Academy, werepurchased and put together. G100 targets “the largest and most significant global companies” formembership and allows members to counsel and connect with each other in a private, off-therecord atmosphere of candid and informed discussion. Meetings are led by a core group of recentchief executives and senior advisors to CEOs. Membership provides access to two meetings a yearin which presentations are facilitated and prepared by top representatives from various advisoryfirms regarding businesses most pressing issues.INSIDER INFOG100 is an exclusive organization and while private and public companies are both welcome, theexchange of ideas between private equity firms and public company CEOs tends to dominatemeeting discussions.WHAT SIZE COMPANIES DO THEY PRIMARILY SERVE?Large (Over 1 Billion)UNIQUE ELEMENTSLarge Company Executives Only
22VISTAGE11452 El Camino Real, Suite 400 San Diego, CA 92130 858-523-6800 Vistage.comMembership count:20,000Personal membership criteriaMust be a CEO, executive orbusiness owner.Company membership criteria:Companies must have minimumannual revenue of 5 million. Mostmembers are in the 5 to 50million rangeTime Commitment Required:Cost 2020 Chief Executive Group, LLC All Rights Reserved.BACKGROUNDVistage membership includes a local, monthly group meeting plus an individual solo meetingwith your group coach. Monthly group meetings are hosted by the members on a rotating basis.Founded in 1957 as The Executive Committee (TEC), the organization underwent a name changeto Vistage in 2006 (though not all the company’s licensee’s adopted the new name and stilloperate as “TEC”).INSIDER INFOVistage groups are recruited and run by local coaches (called “Chairs”) who split memberdues with the national organization. Many of these coaches depend upon cross-selling theirconsulting services to members to supplement their income. There is a significant timecommitment (one half-day per month for group meetings, plus an additional 2 hour coachingsession each month with your coach. Be aware that your Vistage experience is heavily dependentupon the experience base and skill level of the specific chair you are assigned and the 15 othermembers in your group from non competing industries.UNIQUE ELEMENTSPersonal Coach
23YPO (FORMERLY KNOWN AS YOUNG PRESIDENTS ORGANIZATION)600 East Las Colinas Boulevard, Suite 1000 Irving, TX 75039 972-587-1500 YPO.orgMembership count:24,000Personal membership criteriaMust join before age 45Company membership criteria:50 employees or 2 million payroll,plus 15 million valuation or 12million revenue.BACKGROUNDFounded in 1950, YPO is the largest CEO peer organization with chapters in 120 countries(approximately 50% of the membership is outside the U.S.) Members join a local “chapter,”which are further broken down into one or more “forums” (each forum is comprised of 8-12 localmembers in a mix of business sizes and industries). Forums meet monthly for a half day, typicallyhosted and facilitated by each member on a rotating basis. Chapter members also typically meeton a monthly basis with a guest speaker, and YPO hosts national and international meetings andconferences. Members pay local chapter dues, international dues and fees for special national orinternational events. At age 50, each member is “transitioned” out of YPO and placed into sisterorganization YPO Gold.INSIDER INFOThe impression of YPO is that it has a heavy concentration of second- and third-generation sonsand daughters of business founders, lending the organization its unofficial nickname, “YPO:Your Parents’ Organization.” Due to its rule that new members must qualify and join before age45, membership is skewed toward the inherited set, but there are many entrepreneurs andprofessional managers as well.Time Commitment Required:WHAT SIZE COMPANIES DO THEY PRIMARILY SERVE?Lower Mid-Market ( 12 to 100 MillionCostUNIQUE ELEMENTSStrong social and personal network 2020 Chief Executive Group, LLC All Rights Reserved.
24COMPARISON OF LEADING CEO PEER NETWORKSMember Size RangeChief ExecutiveNetwork ostly mid–market( 10 million to 1 billion)Mostly small companies(Under 5 million)Large companies only(Over 1 Billion)Lower mid-market( 5 million to 20 million)Mostly mid-market( 12 million to 100 million) Peer Groups Organized ByIndustry (Non-competitors)and Size Range Meetings Are ProfessionallyFacilitated Local, regional andnational groupsdepending on industry National onlyGlobal Member Access Industry Research(Benchmarks andBest Practices) National Conference Included 5,000(Excluding conferences) 25,000Local MeetingsAnnual Fees 4,800 to 12,000(Based on company size;includes conferences andresearch) 2020 Chief Executive Group, LLC All Rights Reserved. 16,992 annual dues plus 2,250 initiation fee(Excluding conferences) 6,550 annual dues plus 5,250 initiation fee(Excluding conferences)
25WHICH NETWORK IS RIGHT FOR YOU?Each network caters to different types of CEOs. Here are some factors to consider:NetworkFor More InformationChief Executive NetworkIf you run a mid-market company in one of CEN’s target industries—manufacturing,distribution/wholesale, tech/software, professional services (e.g., architecture, engineeringfirm) or construction—and are looking to tap into the benchmarks, best practices andexperiences of other CEOs who have faced the same business issues you face, this networkcould be a great fit for you.ChiefExecutiveNetwork.comEntrepreneurs OrganizationIf you are leading an entrepreneurial enterprise with revenues of at least 1 million and arelooking to join a group of entrepreneurs for monthly meetings and presentations, EO is anetwork you should consider.eonetwork.orgG-100If you are the CEO or CXO of a 1 billion plus company and want to meet with other CXOswho run similarly sized organizations to network and discuss business challenges and bestpractices, G-100 could be a good option for you.g100.comVistageIf you are a CEO or CXO in a company with revenues over 5 million and are looking for alocal business coach and group of peers to discuss your business challenges with, Vistagecould be a good option.vistage.comIf you are a young CEO or President (under 44 years of age) , run a mid-market company withrevenues over 12 million and are looking for other young CEOs to network with acrossindustries, on business, family and personal issues, YPO is worth checking out.ypowpo.orgYPO-WPO 2020 Chief Executive Group, LLC All Rights Reserved.
Chief Executive Network (CEN) was launched on this principle in 1990, and receives accolades from members for practical peer feedback on critical issues. National industry groups meet several times per year in convenient, airport-hub locations to maximize the return on time invested. CEN
