The current batch of exiting CEOs followed luminaries such as Jack Welch, Sandy Weill, and Michael Eisner. The problems Charles Prince and Richard Parsons faced came about from expansion. They made sense out of it. These guys aren’t the mover and shakers as the men they replaced. But they are cunning. Years of being in cut throat corporate positions molded them that way. But being from that style is now burdensome. Key talent is seen as a threat and now isn’t the time for corporate positioning.

Global growth is now the dominant strategy in every major company. Why? Because the global economy is taking root in areas that were once considered non factors. This means two things: 1 – Companies in these areas are now competing with companies in the US and 2 – These companies employ many people who now have incomes higher than they did before this expansion. 

So the next batch of CEOs will have to position their companies in ways never experienced before - a world very open to competition. This world has new oil players, new educations, new technology, and new entrepreneurial drive. The American dream has been exported.

So how does the new CEO succeed? By doing what Mr. Schwartz suggests - by building strong teams. They must hire people stronger than they are. They must execute beyond the next quarter. They must grow internally and only acquire truly valuable additions. And finally, they must take risks.

If each era has a different type of CEO then I conclude that this era will be defined by the 3G CEO. The Green, Global, and Govern CEO. Green is the next push in handling resources effectively. So many companies will save by putting their energy utilization on the front of their minds. Being Green means stop taking things for granted, i.e. electric power or water and start using every resource to its fullest. Global is the result of technology as the great equalizer. The more barriers to trade that are torn down (in one example geography) the greater it is for people to trade their wares. New suppliers come on board and new markets open up, but competitors evolve as well. Govern because this CEO will abdicate certain powers to his team and put in place a governance program to regulate the output. This requires trust and patience, but inspires creativity and the speed and ubiquity of a decentralized organization.

So as we say goodbye to the baby boomer leadership and bring in generation X and Y we are also saying goodbye to a thick middle class and hello to the Divergence Generation. We have a time for CEOs to transform the corporate world unlike any other leadership group has ever had.

Who are the 3G CEOs?