Most of us are acquainted with the job title CEO and likely have a rough idea of what it is. As the highest-ranking officer in an organization, a CEO is its face and spokesperson. They make key decisions about leadership and consult with other stakeholders in management as they make significant business decisions.
The role of a CEO can be rather dynamic based on the size of the company, industry, and mission statement of the organization. In addition to their expertise, they often undergo executive coaching to strengthen their ongoing skills.
Let’s learn about the role of the CEO.
Serve on the board of directors
The board of directors and shareholders elects the CEO for this position. The CEO must report to the board, and shareholders appoint the board. CEOs ensure the board is satisfied with their corporate performance.
Make decisions for the company
A study by the Harvard Business Review found that CEOs spend 72% of their working day in meetings. The rest is divided almost equally between relationship-building, business unit reviews, strategy, culture, and organization. These time areas are used to manage the organization at a macro level.
Any major corporate decision made at a company is decided or signed off on by the CEO. They play a central role in guiding the organization, and while they aren’t the only decision-makers, they have a lot of control.
Become the company’s public face
As you will notice, CEOs from all industries typically serve as the company’s public face. They make statements, answer media questions, and publicly represent an organization’s values.
Understand the industry’s trends and predict its future
A CEO must understand where the industry is going and how their organization fits that trend. Monitor what’s going on. There may be cross-business or cross-industry opportunities you can develop. Don’t hesitate to think outside the box when looking at opportunities.
In addition, the CEO must motivate and drive a company’s workforce and resources toward achieving its strategic goals. The success or failure of the company’s goals can be attributed to the CEO. This puts responsibility on them to ensure targets are hit.
New initiatives to drive profitability
A company producing the same numbers year after year is heading nowhere. A CEO is expected to drive revenues and profitability by expanding the company into new areas, product categories, and territories.
Be bold in your company’s name
There are CEOs that, in a matter of a few years, have made million-dollar companies into billion-dollar corporations exclusively through bold creativity and the execution of a creative vision. It’s not just about what’s expected of them at a base level. A CEO should want to produce more than the minimum expectation.
Plan and implement changes
If the strategic direction changes or if current initiatives are not meeting objectives, a CEO must synthesize the results they are receiving and implement new plans. These changes are often made directly by other managers. However, it is up to the CEO to decide what these are.
Describe how capital is allocated within a company
A CEO plays a central role in spreading capital across a company’s many departments and initiatives. Where and how funds are allocated must align with the organization’s values and objectives and ensure profitability.
Organize personnel into successful teams
Teams must be built to succeed and for that purpose only. Therefore, a CEO must be ready to make personnel moves if/when necessary. This can prove difficult, especially if personal relationships are involved.
Identify and mobilize organizational leaders
No manager or leader can do everything in a company. They need the support of others at every level. In addition to setting direction and aligning resources, a CEO must create and mobilize leaders within the company. They must develop, support, and grow these leaders, which, in turn, strengthens the organization.
Maintain communication between the board and operations
Corporate operations and the board of directors require the CEO to be the main point of communication between them. This puts a CEO in the position of balancing priorities and communicating with various personalities and backgrounds.
Be open to scrutiny and criticism in their role
Expectations of a CEO are often remarkably high. A third of CEOs do not last past their third year in the role. A CEO must be willing to face scrutiny and criticism and turn negative company performance into positives.
Present strategic planning and vision
CEOs guide company strategy and shape its future. They collaborate with the leadership team and the board to establish the company’s long-term goals. They also plan how to get there.
After presenting a distinct vision, the CEO motivates employees, people with stakes in the company, and investors. They get everyone on the same page and lead the team.
Drive corporate culture and values
CEOs set the example for company culture and values. They live out the organization’s ethical standards and values through actions and decisions. The CEO nurtures a strong company culture by encouraging a positive and welcoming workplace.
The CEO motivates staff, encourages team spirit, and improves performance. They also ensure the firm’s culture aligns with its goals to aid its lasting success.
Monitor industry trends
CEOs need to monitor industry shifts, market changes, and competition. Staying informed about industry trends and technologies helps them prepare their companies for growth.
This skill requires them to do market studies, attend industry conferences, and connect with other professionals. By keeping their finger on the pulse, CEOs can make smart decisions that help their companies stay dynamic and sturdy as the business evolves.
Be socially responsible
CEOs need to generate value for all stakeholders, which means thinking about shareholders, employees, customers, and the wider community. They must balance these diverse interests to keep the business growing steadily and profitably.
At the same time, CEOs are expected to put more effort into corporate social responsibility. They tackle issues like environmental care, promoting diversity and inclusion, and getting involved in local communities. CEOs are the figureheads for their company’s reputation.
