A CEO needs to communicate the organisation’s vision and mission, give direction to managers, allocate resources and hold the staff accountable to business priorities.
In performing these essential functions CEO’s everywhere face the same challenges; organising work for productivity and profits, involving economic performance, staff development, and caring.
No matter the company’s size, industry or geography, only the chief executive — who has a 50 000 ft view of the company — can take on the following duties.
5 Key Responsibilities Of The CEO
#1. Own The Vision
- A CEO should determine and communicate the organisation’s strategic direction. Until that’s settled, clear making decisions about anything else does not matter.
- While staff may help shape the strategic vision, the CEO must be able to describe it in a clear, engaging, compelling and exciting way for all stakeholders.
#2. Provide Resources
- Business capital and people capital are the two most important resources; only the CEO can perform the task of balancing resources.
- The CEO must make both available in the appropriate quantities and at the correct time for the company to succeed.
#3. Cast Culture
- Culture is the personality of the organisation. It is the shared attitude, goals, behaviours and values that characterise the company.
- It adds up to how things get done at a company, and influences the entirety of the employee experience and the customer experience.
- The CEO must constantly observe and be involved in order to achieve the desired culture.
#4. Make Good Decisions
- At one minute the CEO is discussing a new product, the next a human resource issue — and then comes along a legal issue. It’s impossible for anyone to be an expert in all aspects of the business, yet the CEO is the person tasked with making the decisions.
- Many problems require a solution that will end up affecting multiple departments, and only the CEO is empowered to take such an action.
- Everyone else can pass the buck from time to time, but the CEO is where the buck stops! He will make the final call when no one else will or can.
#5. Oversee Company’s Performance
- The CEO is ultimately responsible for the company’s performance. To be successful, he/she must take an active role in driving that performance.
- This requires maintaining a keen awareness of the company’s industry and market and being in touch with the core business functions to ensure the proper execution of tasks.
- The CEO also serves as the interface between internal operations and external stakeholders.
Question: Is your organisation or teams performing? If not, focus on the following dimensions: Vision, Mission and Values, Operational Excellence, Development and Changement Management.