The chief executive officer (CEO) of a company is usually the most senior member of the company and manages the day-to-day operations of the company. They are responsible for strategic planning and decision making in determining the direction of the business. In this article, Giaiphapdonggoi.net will discuss what a CEO is and what makes a successful CEO, why are they important, and how are they different from other senior company officials?
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1. What is a CEO?
The Chief Executive Officer (CEO) is the highest position in an organization and is responsible for implementing existing plans and policies, ensuring the successful management of the business/company and setting future strategy. .
What is CEO?
The CEO is ultimately responsible for the success or failure of the organization. As a result, the CEO oversees various functions of the organization, including compliance, finance, human resources, legal, marketing, operations, sales, and technology. The CEO oversees these functions while considering the needs of different constituencies, or stakeholders, including employees, customers and investors.
The title of CEO is commonly used by businesses for which the profit is large enough in terms of headcount or revenue to justify this top position. Some nonprofits also choose to have their most senior person serve as CEO. Business law also affects whether the term is used within an organization. Companies are required by law to have a General Director, other directors and a board of directors. A limited liability company (LLC) can structure itself like a corporation and have one CEO, but is not required by law governing LLCs.
In addition, some business and nonprofit organizations have their highest leadership function as CEO, but still choose other titles, such as president or chief executive officer.
2. What is the role of a CEO?
The level of responsibility of a CEO often varies according to the size of the company. Larger companies often require a holistic approach from their CEOs while smaller companies may require a more detailed approach. As the top-level executive, the CEO is responsible for the overall success of the company, which means they need to oversee production throughout the organization.
What is the role of a CEO?
General CEO responsibilities include:
Representing the company
The CEO is often the public face of a company. For large corporations with a high public reputation, this can mean everything from being keynote speakers at conferences or product announcements to appearing in the media. . When a company makes official statements, it will usually do so in the name of the CEO.
Strategic planning
Since the CEO has the final say on all major decisions, it is important that they have strong strategic planning skills. CEO planning can range from employee policies to marketing initiatives for new product launches. Making the right strategic choices for the company is crucial to allowing the company to grow and progress.
Monitor the implementation of the strategy
The CEO is also responsible for ensuring that their strategies are executed correctly To do this, the CEO will regularly meet and discuss progress with management officials. senior level to ensure the departments for which they are responsible achieve their goals. Those managers would then supervise those below them, and so on along the chain of command to ensure all employees stay focused and on task.
Executive Review
For many senior executives, the CEO is just one of the few supervisors or sole executives at the company, so they are responsible for the conduct and performance of the company. those senior executives. Executives may be tasked with evaluating senior employees on an annual basis, as well as flagging decisions regarding discipline or termination of senior executives. It is important for the CEO to model and maintain performance standards for senior employees as it guides the overall operation of the company.
Market surveillance
The CEO is expected to stay up to date on industry developments by monitoring relevant markets for key trends and indicators. The CEO will also likely use specific commercial media to stay updated on any developments that may help propel the company forward. The more informed executives are, the better prepared they are to make the right decisions in planning and implementing corporate strategies.
Risk reduction
The CEO must use a risk-reduction approach to protect the company's prosperity and success. An executive must always be on the lookout for potential corporate hazards, from impending market shifts to cultural concerns. The goal is to minimize the company's risks and minimize any negative effects when they occur.
Set company policy
An important part of a CEO's job is to control and set company policies. They must be willing to create and modify professional and behavioral policies as needed to be able to address any concerns.
Talk to the Board of Directors
The CEO of a company is the main point of contact for the board of directors, who represent the interests of investors. The CEO is expected to attend board meetings and announce company updates, including financial projections and status reports.
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3. Qualities of a good CEO
An effective CEO requires a well-developed skill set to succeed. This includes a mix of hard and soft skills and both general talent and industry-specific talent. Common traits of successful CEOs include:
Qualities of a good CEO
Leadership
An executive usually doesn't spend much of their time directly creating customer-oriented products or services. Instead, the CEO must ensure that everyone else in the company is doing their job to effectively deliver the best services, and leadership skills will greatly help with that responsibility.
Industry expertise
No matter what industry the company operates in, understanding the details of the industry will benefit the CEO. An executive should have an insider understanding of the market, its challenges, and its history in order to excel in their leadership position.
Contact
An executive needs to be adept at both communicating information and understanding what is being communicated to them. The CEO should also be effective at communicating verbally and in writing as clear communication between all levels of employees is crucial for a successful business.
Data analysis
One of the most effective ways to succeed as a company is to predict trends and identify market inefficiencies in advance. An executive who is effective at analyzing data and reading the market can identify and execute on these opportunities independently before their competitors do.
Education
Enthusiasm for continuing education allows CEOs to stay on top of their skills and ensures that as new trends emerge in the industry, CEOs are best prepared to implement change.
Empathy
Basic empathy skills make it easier for CEOs to understand employee motivation. An enhanced understanding increases a CEO's ability to effectively motivate their team.
Problem solving
A CEO with strong problem-solving skills has the ability to assess situations and find possible solutions to challenges. The combination of industry knowledge and creativity is often the ideal combination for a problem-solving approach, as it allows the CEO to find unique solutions that are still grounded in reasoning. right business.
Reputation
Employees often work harder when they are satisfied with their jobs and feel respected and loved by their employers. Charisma also enables CEOs serving in highly publicity roles to effectively and efficiently engage with the media, the board, investors, and customers.
4. Difference between CEO and board of directors
Difference between CEO and board of directors
The board of directors is elected by shareholders in the company and is responsible for selecting C-level personnel. An executive director will usually be part of the board of directors. Sometimes the CEO is also the chairman of the board of directors; however, this is often avoided due to conflicts of interest. Although the board ultimately decides on other C-level executives, the CEO will often be involved in the process and make their recommendations, based on their deep understanding of the organization. organization and needs.
The Board of Directors and the CEO both make high-level decisions. The exact distinction between their roles is not set out but is determined by company policy. For example, at some corporations, the CEO sits on the board of directors, even the chairman. Board responsibilities include selecting and firing CEOs, approving major policies, and making major decisions. The Board of Directors also oversees the CEO and the company's performance with a view to the company's profitability and the long-term health of the company.
