The most important asset for most companies is the CEO
Most companies don’t have a major competitive advantage that protects their business. Most companies don’t operate in a monopoly, duopoly or oligopoly industry. So most companies are fighting tooth and nail everyday to be successful without any advantage.
So the CEO of the average company becomes the most important asset in the business. The CEO drives the culture, the CEO is responsible for major capital allocation decisions, the CEO leads the direction of the company, and is responsible for the most important hiring decisions. Each decision the CEO makes is more pronounced in a company without a significant competitive advantage.
In a business with a competitive advantage the business is able to protects its market share, it can withstand some poor decision making and still be great.
Being successful in a normal business without a significant competitive advantage requires a great CEO. They are the most important asset for the business.