Should the CEO be in the Kitchen? ISSUE 71 | Page 22

catches it elsewhere.
Ownership must also be crystal clear. Every single risk indicator should be tied to a specific manager who is accountable for watching it and escalating it when necessary. Finally, there must be constant feedback loops. Numbers can be cold; you need the " flavor " of the business that only comes when teams provide their own commentary on the trends and anomalies they see on the ground.
Case in Practice: When Observation Meets Systems
The Kes. 20 million interest-accrual anomaly illustrates how critical it is for structured systems and executive awareness to work together. The automated credit-monitoring tools flagged an exception, but what mattered most was how the CEO engaged with the information. He didn’ t react impulsively or bypass established protocols. Instead, he relied on a disciplined escalation pathway, allowing the credit team to validate the issue and present a decision-ready brief.
That same principle applies beyond credit processes. Just as the system detected the financial irregularity, a CEO’ s own observational awareness like noting who is present in the office, how work flows, or where attention lapses, serves as a real-time complement to formal reporting tools. Systems reveal the data; executive presence confirms the reality behind it. When both are working together, the organization gets a far more accurate and complete picture of its operational health.
Designing for Scalability
As your company gets bigger, your tools have to grow with it. Systems should be able to handle more complexity without burying the executive in paperwork. They should integrate information from all over, finance, operations, HR, and risk into one coherent view. Most importantly, they should show how different parts of the company depend
20 MAL71 / 26 ISSUE on each other, highlighting risks that might start in one department but could end up causing a domino effect across the whole organization.
By combining smart systemic design, clear dashboards, and your own human observation, you achieve a presence that is informed but not intrusive. It allows you to catch risks early, make fast decisions, and keep a steady hand on the wheel across the entire landscape of the business.
Behavioral Sensing And CEO Presence
While dashboards and reporting lines provide a clear view of financial and operational risks, they only tell part of the story. For a modern CEO, presence is just as much about sensing human behavior and organizational dynamics as it is about reading data.
Behavioral sensing is the deliberate act of picking up on subtle cues across the company to spot risks, check on the health of the operations, and reinforce the right culture. It isn ' t about micromanaging; it is a disciplined, strategic habit that fills the gaps that systems leave behind.
Subtle Observation in Action
The example of the CEO in the nearly empty office I mentioned earlier perfectly illustrates this. He didn ' t call the employee over to give him a task or check his work. Instead, he used that moment to quietly notice a few things:
How people were actually interacting with the work: He could see if the remaining staff member was alert and engaged or if the quiet environment had led to a lapse in focus.
Whether coverage gaps were real: He could verify if the field assignment excuse was being handled properly or if the office was truly vulnerable.
Whether the operational flow matched what he expected: He was checking if the reality of a Saturday morning matched the status green report he saw on his screen.
This kind of sensing allowed him to confirm that his systems were resilient without having to interrupt the team’ s work. It was a continuous but quiet observation that gave him a real-time pulse of the office that a month-end report could never capture.
Why Behavioral Sensing Matters
An organization is a living system, and not every risk can be measured with a number. Many of the biggest challenges show up first in human behavior:
Small deviations from the standard process. This is often the first sign that a procedure is too complicated or that people are starting to take shortcuts.
Signs of low morale or disengagement. A team that has " checked out " is a team that will eventually stop reporting risks.
Early signs of bottlenecks. You can often see the frustration of a bottleneck in the way people interact before it ever shows up as a delay in the data.
CEOs who develop this sixth sense can catch these signals early, often before they turn into a crisis. It creates a buffer against blind spots and gives you a much more accurate understanding of how the company is actually functioning.
Principles of Effective CEO Sensing
To do this well without making the staff feel like they are being watched by " Big Brother," a CEO should follow a few basic principles:
Intentional Presence: You don ' t need to be everywhere at once. You just need to be where your presence gives you the most insight. It’ s about choosing strategic moments to step into the " kitchen " and observe.
Non-intrusiveness: Your presence shouldn ' t feel like an audit. It should blend into the natural rhythm of the day so that people act naturally. If everyone changes their behavior the moment you walk in, you aren ' t sensing reality; you ' re watching a performance.
Pattern Recognition: One small event might not mean much. The goal is to notice subtle cues over time so you can tell the difference between a one-time coincidence and a growing pattern of risk.
Integration with Systems: What you see with your own eyes should be used to double-check your dashboards. If the data says everything is perfect, but your intuition tells you something is off, that is a signal to dig deeper.
From Awareness to Decision Readiness
The ultimate goal here is to be ready to make the right decision at the right time. When a CEO combines formal reports with thesesubtle observations, they get a layered understanding of the business. This dual awareness allows you to: intervene early when you see a pattern that suggests a vulnerability is forming; reinforce the culture by noticing and acknowledging the behaviors that align with the company’ s