What Makes Peer Groups Great: Summary of a Qualitative Analysis of Executive Peer Groups
Introduction
Executive peer groups, like those facilitated by the Virginia Council of CEOs (VACEOs), play a significant role globally, with over 100,000 executives involved in various organizations such as EO, YPO, and Vistage. The VACEOs alone boasts over 200 CEO members across Virginia. These groups operate under strict rules emphasizing confidentiality, candor, vulnerability, and a protocol of experience sharing over advice-giving. Meetings generally follow a structured agenda featuring updates on professional and personal challenges, followed by presentations on key issues, where members share their experiences under the guidance of a facilitator. Additionally, annual retreats blend business and leisure, further fostering group cohesion.
Despite their prevalence, little research has explored why some executive peer groups outperform others. These groups’ confidential nature makes external study challenging. However, Mike Matthews, a long-term VACEO member and past chair, leveraged his insider access to conduct research to understand the factors contributing to the success of some peer groups over others.
Participants
To explore why certain executive peer groups thrive, Matthews employed a qualitative research method focusing on the top-performing groups within VACEOs. He selected 35 members from the four highest-ranked groups, as determined by annual member surveys. These surveys asked members to rate various aspects of their group experience on a 10-point Likert scale. They provided a Net Promoter Score by inquiring how likely members were to recommend VACEOs to others. Participation in the study was voluntary, with assurances of confidentiality to ensure honest and open feedback.
Discussion
The analysis of focus group transcripts revealed several key themes: Camaraderie, Safe Environment, Whole Person, Training, Protocol/Process, and Culture.
Camaraderie emerged as a critical element, with participants highlighting the importance of openness, experience sharing, and vulnerability in building trust and commitment within the groups.
Training is provided initially and recommended annually by VACEOs. While not all groups adhere to the annual training, those that do tend to operate more effectively, suggesting the importance of regular training in maintaining group performance.
Group Forming involves creating the group and onboarding new members, establishing norms, expectations, acceptable behaviors, boundaries, and the group’s purpose. Consistency in these processes contributes significantly to group effectiveness.
A Safe Environment is crucial, with members expressing a high degree of trust in the confidentiality of their shared information. This trust fosters connectedness, belonging, and a willingness to share vulnerabilities, strengthening group cohesion.
Culture encompasses the beliefs, values, expectations, assumptions, and perceptions guiding behaviors within the group. High-performing groups often exhibit cultural norms such as punctuality, preparation, compliance with bylaws, and adherence to procedures.
Additional Observations
Other noteworthy observations include recognizing members as Whole Persons, and acknowledging that CEOs face personal and professional challenges. Participants described the peer group as a support system for all aspects of life, not just business, enhancing the holistic well-being of members.
The concept of Protocol and Process was also prevalent. Groups follow established protocols and processes, with effectiveness often waning as time passes from the last training. These protocols provide a structure for regulation and conflict resolution through processes like “clearing the air,” where members address interpersonal issues directly.
Leadership was another recurring theme. High-performing groups typically have influential leaders who guide the group and set the tone. Whether through regular rotation or longer tenures, reliable leadership is crucial for maintaining group performance.
Conclusions
The success of high-performing peer groups is attributed to a combination of Camaraderie, Training, Group Forming, Safe Environment, and Culture. The integration and consistent practice of these elements drive group success. The concept of “fit,” where multiple activities interact and reinforce one another, is central to this success. For instance, a safe environment enables camaraderie, periodic training upholds a culture driven by protocol, and the absence of any of these elements weakens the group’s effectiveness.
The economic benefits of participating in these groups, in terms of both time and money, are seen as invaluable by members. However, without the consistent practice of all these components, the benefits could diminish, potentially making the costs outweigh the gains. Effective leadership and the support mechanisms of the larger organization are crucial in sustaining these high-functioning peer groups.
Mike Matthews has been a member of the Virginia Council of CEOs since 2009, having served as board chair, board member, and committee chair. He is currently pursuing a Ph.D. in Organizational Leadership. This article summarizes a research paper Mike developed on Group Behavior. His findings were reported to the VACEO board for consideration and were presented at the 2024 International Conference on Management, Leadership, and Business Intelligence in Houston, Texas. The full research paper is available by contacting Mike at MMatthews@PSMJ.com.
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