CEO stands for Chief Executive Officer. The CEO is the highest-ranked executive in a company or corporation. CEOs may also be called the executive director or the managing director. Roles vary from company to company depending on the size and structure of the organization. In a small company with few employees, the CEO is much for involved in the running of the company. He or she may hire staff and make a lot of day-to-day business decisions. In a larger company, CEOs are more concerned with business strategy at a higher level. Their function is usually to direct and guide the growth of the company, while more routine, day-to-day decisions are delegated to other managers. The following are some of the main duties of CEOs.
CEOs are required to plot the future direction or growth of the company in a strategic way. This may involve a step-by-step plan of the decisions a company should make to get from point A to point B. It may also include insights on the CEOs part as to where the industry is headed, what competition they may face, and how the company can get ahead as opposed to being left behind.
Setting the Tone
CEOs also work to create an image or brand for the company and its work culture. This may include some reinventing when the reputation of the company is at stake or times are tough. Companies like Google and Apple have worked hard to create company cultures where employees are given freedom and flexibility. As a result of their progressive company cultures, these companies have access to the best talent in the industry when it comes to hiring. This may be part of a CEO’s strategy in branding the company.
CEOs also take responsibility for contracts with employees, group health insurance, and outsourcing to other service providers. In companies that do not have a large human resource department, CEOs may be directly involved in negotiating with labor unions. Even in companies where human resource managers are involved in hiring and negotiating work contracts, the CEO may still have to approve contracts.
Business development refers to the image and reputation of the company among its clients and customers. CEOs market the company at the highest level, which means using their influence and position to increase profits. In a small business, this may include a comprehensive marketing and branding campaign. Once a campaign is set in motion, the CEO is responsible for cultivating profitability by developing advantageous relationships and acting as the highest representative of the company.
CEOs may also work with potential successors, such as upper-level executives or managers. The position of CEO is one that requires varied duties and experience in the business world. Mentoring helps to ensure that the company isn’t left without adequate leadership should the CEO decide to pursue another position or retire. The CEO might also be responsible for reviewing employee performance, especially at the senior level.
The CEO is the highest, most powerful executive in the company. He or she is responsible for major business decisions. CEOs may take on a variety of duties according to the size and organizational structure of the company.