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CEO's – Adjusting When the Course Becomes Deadly.
By Ken Greger
Wednesday, 14th September 2016
 

On May 10th, 1996, tragedy struck as eight climbers died on Mount Everest in the face of an unexpected, powerful storm, it was the worst loss of life that ever occurred on the mountain in a single day.

At more than 29,000 feet, Mt. Everest is extremely difficult and dangerous to climb. Since 1953 when Sir Edmund Hilary and Tenging Norgay became the first to reach the summit, advances in technology have enabled less experienced climbers to make the attempt with the assistance of expert guides. Such guides are the focus of this article.

British native, Rob Hall, and American climber, Scott Fischer, were each guiding separate expeditions attempting to reach the summit on May 10th.

Rob and Scott, both experienced Everest veterans and viewed as among the world’s best, were well qualified and well paid to guide their respective climbers. While their leadership styles differed, each respected the mountain and the fundamental need for rules to ensure the safety of their clients.

The goal was to summit Mt. Everest, which required months of training and planning, payment of a sizeable fee and travel to the other side of the world. The process was to comply with the leadership and safety measures provided by the expert guides, which included bringing a sufficient supply of oxygen and medical supplies on the climb, and adhering to a specific time schedule.

So what happened?

The unexpected storm hit before everyone had summited. Rob immediately asserted his leadership and insisted on turning back without summiting, as his cardinal rule was to turn around by a certain time of day regardless of progress on a given climb.

The storm only further complicated matters. Several of their clients urged Rob and Scott to complete the climb â€" after all, they had spent a lot of money to be there and the summit was in sight.

Against their better judgment, Rob and Scott gave in to their clients. But the storm intensified and darkness set in, lowering temperatures and slowing descent. The climbers’ bodies began to deteriorate and it was discovered that a number of the oxygen canisters were, in fact, empty.

So what can we learn from this devastating tragedy?

A CEO is the guide. He or she must set the tone, communicate the vision and drive creation and execution of the strategy to achieve the vision. While the CEO must generally be relentless in pursuing such goals in order to build the business and please the board, the shareholders and other key stakeholders, this pursuit must never be at the expense of the company overall, or its people. Thus, a CEO, however laser-focused, cannot be an effective guide if wearing blinders.

A CEO cannot lead the team to success if he/she is â€" inadvertently or otherwise â€" subjecting the team and the company to grave danger. There will be many times along the way where the goal appears to be within reach and a decision to bypass key principles will be tempting.

But it is in these very moments that the CEO â€" as guide and fiduciary for the health of the company and its people â€" must do what is right despite the pressing goal. He/She must be the ultimate pathfinder, factoring in relevant new information and guiding the company and the team to the best outcome.

Rob and Scott perished with six others on that terrible day. They failed to depart from the plan even though new factors demanded it. Each was pressured by clients to continue the climb, but guides can’t succumb to such pressure.

No, the CEO â€" the guide â€" must apply his/her expertise and insist on the best direction in response to new information â€" in the case of Everest, an unexpected, worsening storm. In such cases, with so much on the line, a CEO must strongly assert his/her position and be willing to take the heat.

At the end of the day, a setback is substantially better than death, and preserves the opportunity to try once again.

Ken Greger - Managing Director

Ken is a member of the International Society of Hospitality Consultants and has spoken multiple times at ALIS, The Lodging Conference, The Global Spa & Wellness Summit and to other audiences. He is a member of the ALIS Planning Committee and has served on nonprofit and advisory boards. His articles have appeared in The Cornell H. R. A. Quarterly, Hotel & Motel Management, Hotel News Now and other leading industry news media. Ken is a Certified Public Accountant, having started his career with Deloitte & Touche. From there he entered the world of executive search and consulting, later joining KPMG’s global search practice in Los Angeles, where he was also a member of the firm’s Entertainment Industry Practice Group. Six years later he was recruited to head executive search in the Western Region for Laventhol & Horwath. After four years Ken left to launch Greger/Peterson Associates, Inc., a highly regarded executive search firm specializing in Hospitality & Leisure. In January 2016, more than 20 years later, the firm merged with AETHOS Consulting Group. Married with three kids, Ken considers family a priority.

www.aethoscg.com 

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