Run the Numbers The CEO's #1 Job: Capital Allocation
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Jul 19, 2025 Discover the pivotal role of capital allocation as the key responsibility of CEOs. Most leaders focus on operations and storytelling, but strategic capital deployment can yield the highest impact. Learn about the challenges faced by CEOs in private equity-backed firms and explore effective resource allocation methods. A fascinating case study reveals successful strategies in the media industry, illustrating the importance of mastering this often-overlooked skill. Plus, there’s a light-hearted take on personal tech mishaps that adds humor to the discussion.
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CJ's Everyday Life Fails
- CJ Gustafson shares humorous personal stories about struggling with simple tasks like inflating tires and recognizing a gas leak.
- These anecdotes emphasize his contrast between operational skills in business and everyday practical life.
Capital Allocation's Leverage
- CEOs have three jobs: run the company, tell the story, and allocate capital effectively.
- Most focus on the first two, but capital allocation has the highest leverage with little guidance available.
Why CEOs Lack Capital Skills
- Most CEOs are unskilled in capital allocation because they rise through specialization in areas like marketing or production.
- Being a great operator doesn’t prepare them for strategic capital deployment as a CEO.
