The role of a CEO or the chief executive officer is very coveted and one of the ultimate goals or achievements for many executives. While everyone wants to be a CEO, not everyone is clear about everything a CEO does, exactly. CEOs responsibilities are working on strategy, organization, and culture.
CEO’s responsibilities also include how capital is allocated across the firm or how to build teams to succeed. They can also set the tone, vision, and sometimes the culture of their organizations.
What do CEOs do?
The CEO is responsible for making major corporate decisions, driving the direction of the company, supervising other executives, and overseeing growth plans. They are accountable to the board of directors or stakeholders of the company and are often the public face of the organization. CEOs typically have extensive experience in their industry and are tasked with guiding their company toward success and profitability.
What is a CEO?
A chief executive officer (CEO) is the highest-ranking executive in a company. CEOs are elected by the board and its shareholders. They report to the chair and the board who are appointed by shareholders.
A CEO’s primary responsibilities include making major corporate decisions, driving the workforce and resources of a company toward strategic goals, and acting as the main point of communication between the board of directors and corporate operations. The chief executive officer serves as the public face of the company in many cases.
What is the role of a CEO?
CEOs oversee the operations of an organization and are also seen as the face or identity of the company. Here are a few skills CEOs are expected to have;
- Organizational skills to streamline processes and efficiency
- Interpersonal skills to work with other leaders in the company
- Analytical skills to evaluate every strategic goal so the company can achieve success
- Management and leadership skills to successfully direct the company’s vision through the employees
The role of a CEO varies depending on the size and corporate structure of the company. In large corporations, the role of a CEO is overall strategic decisions and company growth. On the other hand, in smaller companies, the CEO is more involved with day-to-day functions and organizational culture. And in companies where the founder is also the CEO, the responsibility increases.
Responsibility of a CEO
While there is no specific list of CEO responsibilities, here are few that CEOs are entrusted with;
- Communicating with shareholders, and official bodies
- Closely working with board of directors towards company’s goals
- Identifying resources the company might need
- Mentoring other leaders in the company and evaluating their performance
- Overseeing the company’s strategy
- Ensuring a level of corporate social responsibility for the company
For most of the time, CEO just have to be a CEO, but in smaller organizations, CEOs can also be founders. While this does not change the role or the responsibility of a CEO. Sometimes a CEO can also be the president, the managing director, the COO, or the CFO, depending on the CEO’s background. Sometimes a CEO can also be the chairperson of the board of directors, and this is where things can get a little blurred if those in charge are not careful.
These situations are not uncommon and CEOs have to ensure they are able to separate their roles and function as their roles need. The roles that are most in conflict when it is held by the same person is the CEO and the chairperson of the board. And when this happens, the board works to find someone else to take either position.
The role of a CEO is a challenging as well as rewarding one. A company’s success is determined by the CEO, so whatever size the company is, the CEOs role is extremely important. The work of a CEO can take an ailing company to success.
