You may have noticed by now that I love writing about project management. You might also be thinking… but isn’t this blog about personal finance and business?
Yes! It is! And that is exactly why I love project management so much.
You can become a CEO with project management. I think that project management is one of the best skill sets for helping you become CEO of your own business.
I believe this because I had started my own business before I became a project manager. Project management taught me many valuable business skills. Most of these skills were key to scaling my business and running it effectively!
This post will share how you can use the skills you learn as a project manager to become a CEO, of any business!
CEO’s need to understand their stakeholders
In the dynamic landscape of corporate leadership, mastering the art of understanding stakeholders is a pivotal step toward becoming a CEO. The ability to navigate a complex web of stakeholders is hard for most people to learn. Which is why this skill is so valuable and crucial!
There are many things involved in stakeholder management. This includes:
- identifying key players
- comprehending their interests
- Identifying their motivations
- Managing and delivering according to their expectations
Beyond this, an astute project manager recognizes the importance of grasping corporate politics. After all, no matter where you work, there are always power dynamics at play!
To nab a coveted leadership role, like CEO, influence without authority becomes a secret currency. This is the ultimate showcasing of your capacity to lead and inspire teams without relying solely on hierarchical power. What screams “future leader” more than that?
This nuanced skill set extends beyond the corporate realm, proving equally indispensable in entrepreneurship. Successful entrepreneurs always have the key ability to forge meaningful connections and garner support. This is their secret key to transforming visionary ideas into successful ventures.
Project management is great for teaching potential CEO’s risk management
Now, let’s explore the pivotal role of risk management for a CEO’s success. Just as a seasoned captain navigates stormy seas, a proficient CEO must identify, assess, and address potential risks within their organization.
The first step involves early identification of potential hazards, enabling CEOs to proactively plan for contingencies and stay ahead of disruptions. The second step is assessing risks to prioritize efforts and resources effectively, focusing on the most impactful threats.
The third step is crafting robust risk mitigation plans, and establishing a resilient business framework through preventative measures and response strategies. Lastly, ongoing monitoring and adjustment ensure CEOs stay agile, fostering adaptability in a dynamic business environment.
Mastering risk management as a CEO is about building a foundation of foresight, resilience, and strategic agility. It empowers CEOs to navigate uncertainties effectively, capitalize on opportunities, and drive sustained success
Negotiation is key for both CEOs and project managers
I’m someone who has always worked in sales. I believe that this is foundational to why I was able to start my first business at only 24!
That being said, there are many ways to pick up the basics of selling. After all, at its core, sales is all about negotiation!
When I cold call, I have to negotiate a good time for someone to take a first sales call (aka business pitch) with me! In a cold email, I use the common “objections” I know someone might have to craft an email that convinces them to respond! From there, it can still be a process of negotiating whether I “just send over some info on pricing” or get them to meet with me so I can share value.
Negotiation rules the world. You negotiate salaries when accepting a job (or you should be!). At home, you negotiate with your partner who does what chore. With investors, you negotiate how much money they should give you!
Money doesn’t just talk, it negotiates!
Forecasting is another unique skill that potential CEOs can learn from project management
The ability to accurately forecast is so unique to project management. At least in my experience!
When I worked a typical 9 to 5, most of the employees were just a cog in the machine. Managers were responsible for forecasting, but often they were focused solely on their team’s performance.
If you think about a CEO, they must steer the whole ship! In larger companies, VP/director-level roles also support the overall road map…. But first, a business has to make it to that size!
I work with a lot of start-up founders and the reality is that their ability to allocate their energy is key to success. One of the best ways to mitigate this is by accurately forecasting for your business.
Think about the importance of these forecasts:
- Product development
- Sales pipeline
- Cost of delivery (from people to tools!)
Anyone can write down some numbers on a piece of paper and come up with “expected outcomes”. Most of those people are also shocked when things don’t go according to plan. In many ways, forecasting is an art form that takes into account the numbers but also the realities of human nature.
Effectively Managing Projects
You might be surprised to learn that the core of business is delivery! Whether you are delivering a product or service, many steps need to happen for you to make a customer happy.
When I took Google’s project management certificate course, they mentioned that projects are everywhere. We all manage projects in our day-to-day without even thinking about it!
And they were right. At the time, I was planning for my wedding… what an overwhelming project! From coordinating vendors to adjusting budgets, it sounds the same as running a business!
If you run a coffee shop, many things need to be managed to get a customer a cup of Joe! Cups, employee schedules, marketing and more make up this type of business project!
Even when I do consulting, a project is still running behind the scenes! I need to plan how I will find clients (such as networking events), create a budget (commuting to the event/ paying for it), execute the event (show up!), have a lead capture tool (LinkedIn), and then convert the lead into a customer (that’s my secret)!
Budgeting is vital for businesses and projects
Budgeting is vital, particularly amid tech layoffs. Effective CEOs excel at budget management. Unfortunately, sometimes the reality of a budget doesn’t always account for the humans on the other side.
Layoffs, often attributed to “overhiring,” result from adjusting budgets based on changing economic forecasts. When the economy thrives, businesses anticipate higher profits, but in downturns, consumer spending decreases. This shift prompts a need for fewer employees, irrespective of individual performance.
A recent viral TikTok video depicted a salesperson’s (Brittany Pietsch) distressing layoff from Cloudflare despite meeting her ramping targets. This further highlights the challenge of forecasting and budgeting not accounting for the human on the other end.
Businesses must adapt their staffing to align with economic shifts, sometimes leading to perceived “overhiring.” While this reality may seem harsh, it underscores the crucial role budgeting plays in sustaining a business.
Unless the start-up is backed by venture capital. But that’s a story for another blog post!
What do you think about using project management to become CEO? Are there any project management skills that are transferable to the CEO that I missed? If so, drop a comment below!
