Roles of Chief Executive Officer

NOTE: References to a Boards of Directors in the following are in regard to chief

executive officers of corporations, whether for-profit or nonprofit.

Leader

 Advises the Board

 Advocates / promotes organization and stakeholder change related to
organization mission
 Supports motivation of employees in organization products/programs and
operations

Visionary / Information Bearer

 Ensures staff and Board have sufficient and up-to-date information

 Looks to the future for change opportunities
 Interfaces between Board and employees
 Interfaces between organization and community

Decision Maker

 Formulates policies and planning recommendations to the Board

 Decides or guides courses of action in operations by staff

Manager

 Oversees operations of organization

 Implements plans
 Manages human resources of organization
 Manages financial and physical resources

Board Developer

 Assists in the selection and evaluation of board members

 Makes recommendations, supports Board during orientation and self-evaluation
 Supports Board's evaluation of Chief Executive

Responsibilities of Chief Executive Officer

There is no standardized list of the major functions and responsibilities carried out by
position of chief executive officer. The following list is one perspective and includes the
major functions typically addressed by job descriptions of chief executive officers.

1. Board Administration and Support

Supports operations and administration of Board by advising and informing Board
members, interfacing between Board and staff, and supporting Board's evaluation of
chief executive

2. Program, Product and Service Delivery

Oversees design, marketing, promotion, delivery and quality of programs, products

and services

3. Financial, Tax, Risk and Facilities Management

Recommends yearly budget for Board approval and prudently manages organization's
resources within those budget guidelines according to current laws and regulations

4. Human Resource Management

Effectively manages the human resources of the organization according to authorized

personnel policies and procedures that fully conform to current laws and regulations

5. Community and Public Relations

Assures the organization and its mission, programs, products and services are
consistently presented in strong, positive image to relevant stakeholders

6. Fundraising (nonprofit-specific)

Oversees fundraising planning and implementation, including identifying resource

requirements, researching funding sources, establishing strategies to approach
funders, submitting proposals and administrating fundraising records and
documentation
 CEO Responsibilities
Include:

 Developing high quality business strategies and plans ensuring their

alignment with short-term and long-term objectives

 Leading and motivating subordinates to advance employee engagement

develop a high performing managerial team

 Overseeing all operations and business activities to ensure they produce

the desired results and are consistent with the overall strategy and
mission

Job brief
We are looking for an experienced Chief Executive Officer or CEO to
supervise and control all strategic and business aspects of the company.
You will be the first in command in the company and responsible for
giving the proper strategic direction as well as creating a vision for
success.

To thrive as a CEO you must be a prudent manager and an inspiring

leader. The ideal candidate will have a business mindset and will be able
to see the “big picture” in a variety of settings. They will take actions to
enhance the company’s cash flow while keeping the human factor in
perspective.
 The goal is to drive the company’s development and guide it towards
long-term success.

Responsibilities
 Develop high quality business strategies and plans ensuring their
alignment with short-term and long-term objectives

 Lead and motivate subordinates to advance employee engagement

develop a high performing managerial team

 Oversee all operations and business activities to ensure they produce the
desired results and are consistent with the overall strategy and mission

 Make high-quality investing decisions to advance the business and

increase profits

 Enforce adherence to legal guidelines and in-house policies to maintain

the company’s legality and business ethics

 Review financial and non-financial reports to devise solutions or

improvements

 Build trust relations with key partners and stakeholders and act as a point
of contact for important shareholders

 Analyze problematic situations and occurrences and provide solutions to

ensure company survival and growth

 Maintain a deep knowledge of the markets and industry of the company

Requirements
 Proven experience as CEO or in other managerial position

 Experience in developing profitable strategies and implementing vision

 Strong understanding of corporate finance and performance management

principles

 Familiarity with diverse business functions such as marketing, PR, finance

etc.
 In-depth knowledge of corporate governance and general management
best practices

 An entrepreneurial mindset with outstanding organizational and

leadership skills

 Analytical abilities and problem-solving skills

 Excellent communication and public speaking skills

 MSc/MA in business administration or relevant field

The Chief Executive Officer (CEO) is the highest-ranking executive manager in a
corporation or organization. The CEO has responsibility for the overall success of an
entire organization.

The CEO has the ultimate authority to make final decisions for an organization.

The CEO has specific responsibilities depending on the needs of his or her
organization. The job description of a CEO varies by organization. The daily tasks
of a CEO vary but the overall vision for the position provides the framework that is
consistent across organizations.

The Overall Framework for the CEO's Role

The CEO has overall responsibility for creating, planning, implementing

and integrating the strategic direction of an organization. This includes
responsibility for all components and departments of a business.

The CEO makes certain that the organization's leadership maintains constant
awareness of both the external and internal competitive landscape, opportunities for
expansion, customers, markets, new industry developments and standards, and so
forth.

The CEO reports to the Board of Directors or in some nonprofit settings, such as
state government, the CEO may be the head of an agency or department and report
to the office of the governor.

The CEO serves at the discretion of the Board of Directors.

The CEO may also own the business, and may have founded the business, so his or
her commitment to the business is significant. He may also own a significant portion
of the company or its stock. In these cases, a Board of Directors may exist, but its
authority is nominal and advisory.

Whether the top person is president and CEO, or just CEO, he or she is the top
person in command in an organization and has specific responsibilities depending on
the needs of his or her organization.

Thus, the CEO's job responsibilities can vary from organization to organization. As
with any level of management in an organization, the CEO's role starts with
the fundamental job responsibilities of a manager.

Because the role of the CEO bears significant responsibility, accountability, and
authority within an organization, the CEO has these additional responsibilities as he
or she leads the business.
Responsibilities of a CEO

The responsibilities of a CEO include:

 Creating, communicating and implementing the organization's vision,

mission, and overall direction. Leading the development and implementation
of the overall organization's strategy.
 Leading, guiding, directing, and evaluating the work of other executive
leaders including presidents, vice presidents, and directors, depending on the
organization's reporting structure.
 Soliciting advice and guidance, when appropriate, from a Board of Directors.
 Formulating and implementing the strategic plan that guides the direction of
the business or organization.

 Overseeing the complete operation of an organization in accordance with the

direction established in the strategic plans. This includes the design of the
organization in a manner that facilitates and supports the operations.
 Evaluating the success of the organization in reaching its goals. Making sure
that each strategic goal is measurable or that the outcomes can be described
so graphically that an agreed upon picture is shared by the team.
 Maintaining awareness of both the external and internal competitive
landscape, opportunities for expansion, customers, markets, new industry
developments and standards, and so forth. Looking at potential acquisitions
or the sale of the company under circumstances that will enhance shareholder
value.
 Representing the organization for civic and professional association
responsibilities and activities in the local community, the state, and at the
national level. (Other senior leaders bear responsibility for these ventures as
interested or assigned as well.)

 Demonstrating the leadership necessary to make the organization's mission a

success. This leadership includes providing leadership vision, leadership
that attracts followers, and all other aspects of successful leadership.
 Holding the organization members responsible and accountable for carrying
out all aspects of the CEOs role. The CEO has to work with people who are
competent to attain each component of his or her job description.

Additionally, the CEO must ensure that organizational leaders experience the
consequences of their actions whether through reward and
recognition or performance coaching and disciplinary actions.
The organization's CEO is a key player in whether and how well an organization
will succeed. If they carry out these job responsibilities effectively, it will magnify
the probability that their organization will experience success.
 What is intrinsic to the CEO’s job?
This isn’t a traditional job description; it’s an examination of the actual roles
that a CEO plays (legally or de facto) within a company. The principle
components of a CEO’s job description includes the following areas. Any
individual CEO may take on any tasks that they wish, but these are the
things that can’t be delegated:
1. Setting strategy and direction
2. Modeling and setting the company’s culture, values, and behavior
3. Building and leading the senior executive team
4. Allocating capital to the company’s priorities
While a CEO may get input for some of those duties, it is the CEO’s—
and only the CEO’s—responsibility to perform those well. Being the CEO,
they can spend the rest of their time doing whatever they decide they want
to spend their time on. But ultimately, everything else about a given CEO’s
job is optional.
Success as a CEO requires more than just knowing the CEO’s job
description. A CEO needs to know how to measure their success as a
CEO, avoid the pitfalls that are unique to the CEO’s job, and conduct
themselves to stay sane and skillful over time.

Setting strategy and direction

What is the CEO’s main duty? Setting strategy and vision.The senior
management team can help develop strategy. Investors can approve a
business plan. The Board can approve, advise, or ask the CEO to revise a
business strategy. But at the end of the day, it’s the CEO who ultimately sets
the direction:
 Which markets will the company enter? Against which competitors?
 What will the company’s product lines be?
 How will the company differentiate itself? Will it be low cost? High service?
Convenient Locations? Flexible financing? High-touch? Mass produced?
The CEO decides, sets budgets, forms partnerships, sells off incompatible
product lines, makes acquisitions, and hires a team to steer the company
accordingly.

Modeling and setting the company’s culture, values,

and behavior
The CEO’s second duty is building culture. Work gets done through people,
and people are profoundly affected by culture. A lousy place to work can
drive away high performers. After all, they have their pick of places to work.
And a great place to work can attract and retain the very best.
Culture is built in dozens of ways, and the CEO sets the tone. Her every
action—or inaction—sends cultural messages (see "Life Under a Magnifying
Glass"). Clothes send signals about how formal the workplace is. Who she
talks to signals who is and isn’t important. How she treats mistakes
(feedback or failure?) sends signals about risk-taking. Who she fires, what
she puts up with, and what she rewards shape the culture powerfully.
This can not be emphasized enough! People imitate a CEO’s behavior
when deciding how to act. The book Pre-suasion by Robert Cialdini,
documents at length the ways in which, for example, a dishonest CEO
makes employees feel as if they can cut corners, steal from the company,
and generally behave according to those same standards.
A project team worked weekends launching a multimedia web site on a tight
deadline. Their CEO was on holiday when the site launched. She didn’t call
to congratulate the team. To her, it was a matter of keeping her personal life
sacred. To the team, it was a message that her personal life was more
important than the weekends and evenings they had put in to meet the
deadline. Next time, they may not work quite so hard. The emotion and
effect on the culture was real, even if it wasn’t what the CEO intended.
Congratulations from the CEO on a job well done can motivate a team like
nothing else. Silence can demotivate just as quickly.
If vision is where the company is going, values tell how the company gets
there. Values outline acceptable behavior. The CEO conveys values through
actions and reactions to others. Slipping a ship schedule to meet quality
levels sends a message of valuing quality. Not over-celebrating a team’s
heroic recovery when they could have avoided a problem altogether sends a
message about prevention versus damage control. People take their cues
about interpersonal values—trust, honesty, openness—from CEO’s actions
as well.

Building and leading the senior executive team

Team-building is the CEO’s #3 duty. The CEO hires, fires, and leads the
senior management team. They, in turn, hire, fire, and lead the rest of the
organization.
The CEO must be able to hire and fire non-performers. She must resolve
differences between senior team members, and keep them working together
in a common direction. She sets direction by communicating the strategy
and vision of where the company is going. Strategy sets the direction for
the senior team, who in turn set it for the rest of the company.With clear
direction that everyone understands, the team can rally together and make it
happen.
Don’t underestimate the power of setting direction. In 1991, at Intuit’s new
employee orientation, CEO Scott Cook presented his vision of Intuit as the
center of computerized personal finance. Intuit had just 120 employees and
one product. Ten years later, it’s a billion-dollar company with thousands of
employees and dozens of products. Worldwide, it is the winner in personal
finance, bar none. The success is due in no small part to every Intuit
employee knowing and sharing the company’s vision and strategy.

Allocating capital to the company’s priorities

Capital allocation is the CEO’s #4 duty. The CEO sets budgets within the
firm. She funds projects which support the strategy, and ramps down
projects which lose money or don’t support the strategy. She considers
carefully the company’s major expenditures, and manages the firm’s
capital. If the company can’t use each dollar raised from investors to
produce at least $1 of shareholder value, she decides when to return money
to the investors. Some CEOs don’t consider themselves financial people, but
at the end of the day, it is their decisions that determine the company’s
financial fate.