CEO (Chief Executive Officer)

 

What is a CEO (general director)?

A CEO (Chief Executive Officer) is the highest-ranking individual employee within an organization. They are employees in the sense that they work for the company (rather than being chosen by the shareholders), but he or she is not an ordinary employee; They have considerable responsibility and influence within the company. read more. webcomputerworld

However, in organizations with a healthy corporate governance function, the CEO is also not an omnipotent leader with unchecked power and decision-making authority. The CEO reports directly to and is ultimately accountable to the company's board of directors (whose members are elected by shareholders).

The specific responsibilities of a CEO may vary slightly from company to company, but generally this person is responsible for the ultimate success or failure of the organization.

Executive Director Responsibilities

A CEO can (theoretically) take on any role or responsibility he wants; In fact, some CEOs, especially in smaller organizations, tend to be quite hands-on with some corporate functions.

CEOs may be drawn to specific roles, such as marketing or finance, based on their experience and professional experience. The phase of the company's life cycle also plays a role; For example, CEOs in early-stage companies may spend more time raising funds than their counterparts in more mature companies.

In practice, however, a CEO is best focused on a handful of really important core tasks. These include:

1. Establish and execute the organizational strategy

Decisions about new product lines, creating (and/or maintaining) competitive advantages, potential new markets, and mitigating risks or seizing opportunities (among other things) are the responsibility of the CEO.

As with anything in an organization, they rely on a lot of data and input from executives, as well as board insight and direction, but the CEO is the person who has operational control over strategy. and the execution.

2. Establishment of the senior management team

Effective CEOs can attract the best talent to their organizations. While they are not responsible for hiring or firing each individual employee, they are responsible for building and supervising the leadership team, which in turn hires and supervises middle and upper management in their departments.

The leadership team includes the CFO (Chief Financial Officer), COO (Chief Operating Officer) and, depending on the type of organization, any other C-suite roles that may exist (Chief Risk Officer, Chief Technology Officer, Chief Strategy Officer, Chief Investment Officer, etc.)

In many organizations, the board has ultimate (formal) authority over C-level hiring decisions, but in most cases the board actually follows the CEO's recommendations.

3. Make capital allocation decisions

While departments and department heads may be responsible for managing their respective budgets, the ultimate responsibility for setting and managing the organization's overall budget to effectively execute strategic initiatives rests with the CEO.

In addition, the CEO will also consider when (and how) to raise funds and how best to use excess capital. Strategies include paying off debt, paying off capital in the form of dividends or share buybacks, or reinvesting in the company.

4. Establish vision, values and corporate culture

Corporate culture has many elements that are organic in nature, but the mission, vision, and values designed and implemented by the CEO will ultimately drive that culture in many different directions.

The CEO must be very aware of his tone, his behavior, and every action he takes (or fails to take): the entire organization is watching. Even decisions about how they dress or how they present themselves and interact with other members of the company will set the tone for the rest of the organization.

5. Effective communication with all stakeholders

The CEO is the face of the organization. He may represent the Company to the public, the press, legislators or other regulators, employees, customers, suppliers, or any other party interested in the Company's business. read more. healthnutritionhints