Reinforcing robust relationships within the C-suite

Research into the C-suite access economy, where businesses utilise the services of self-employed fractional leaders instead of employing them, has demonstrated that psychological ownership is crucial for building long-lasting relationships.

Psychological ownership refers to the perception that something is ‘mine’ or ‘ours’, even if the individual does not legally own it. It is a cognitive and emotional state in which a person feels a sense of possession over an object, idea, role, space, or even a person.

For psychological ownership to emerge between CEOs and their senior leaders, the following foundations need to be in place:

Efficacy

CEOs and their top teams must understand each other's needs, feel knowledgeable about each other both professionally and personally, as well as being confident that they are aligned and working towards common objectives. This is essential for building trust and efficacy within the team. When C-suite executives feel confident in their roles and the support they receive from the CEO, they are more likely to contribute effectively to the company's success.

Self-identity

Possessions contribute significantly to our sense of identity and self-definition. People use ownership to define themselves and express self-identity to others. In the context of a leadership team, C-suite executives and the CEO work together with shared identities and use them to establish and contribute to their own identities. By nurturing a shared sense of identity, CEOs can strengthen the bonds within their leadership teams.

Belonging or having a place

Individuals seek particular territories for belonging and to call home. Working together enables C-suite executives and the CEO to be part of a group of like-minded people, contributing to their feelings of psychological ownership towards each other. When leaders feel that they belong to a cohesive and supportive team, they are more likely to invest their time and energy into the collective success of the organisation. Creating a sense of place and belonging is crucial for CEOs looking to develop strong relationships with their leadership teams.

Routes to psychological ownership

Once the foundational roots are in place, the CEO and top team can use the following routes to develop psychological ownership, all of which are interrelated:

Control

The extent to which the CEO and the top team can control and access each other impacts the feelings of psychological ownership. This includes how accessible, approachable, and available they find each other. CEOs should strive to create an environment where open communication and collaboration are encouraged. By promoting transparency and accessibility, CEOs can help their team members feel more in control and connected to the organisation.

Getting to know each other

The more information the CEO and C-suite executives have about each other, the deeper the relationship between them – and the stronger the feelings of psychological ownership. CEOs should invest time in getting to know their team members on a personal level, understanding their strengths, weaknesses and aspirations. This intimate knowledge fosters trust and deepens the connection within the leadership team.

Self-investment

Investment can take many forms – time, skills and ideas, as well as physical, psychological and intellectual energies. The greater the investment, the more the individual feels connected to the target. For example, the more that CEO and C-suite executives work together to co-create outputs, the stronger the feelings of psychological ownership. By actively involving the leadership team in decision-making processes and strategic initiatives, CEOs can enhance their sense of ownership and commitment to the organisation's success.

Psychological safety

This refers to the belief that one can speak up, share ideas and take risks without fear of negative consequences in group settings. Creating a psychologically safe environment is crucial for fostering innovation, collaboration, and strong relationships within the leadership team. To develop psychological safety, CEOs should encourage open communication, provide constructive feedback and demonstrate empathy and support.

When team members feel safe to express themselves without fear of judgment, they are more likely to share innovative ideas and contribute to the organisation's growth. Psychological safety also promotes resilience and adaptability, as leaders feel confident in navigating challenges and uncertainties together.

Developing strong relationships with the leadership team is essential for CEOs aiming to drive their organisations towards success. By understanding and leveraging the principles of psychological ownership, CEOs can create a cohesive and motivated leadership team.

Fostering a sense of control, intimacy, self-investment and psychological safety are key strategies for nurturing these relationships. By applying these lessons, CEOs can ensure that their leadership teams are aligned, committed and poised to achieve remarkable results for the organisation.

Sara Daw is group CEO of The CFO Centre and The Liberti Group, as well as the author of Strategy and Leadership as Service – How the Access Economy Meets the C-Suite, which explores the fractional leadership trend