In the business world, the position of CEO is the top executive of a company. Over the last few years, new jobs have emerged and others have been transformed, because this position already existed, but we probably didn't call it by this name.
But if you don't know what a CEO is and what their functions are within a company, don't worry, in this article we'll tell you all about it. Read on so you don't miss anything!
what is the CEO in a company?
The CEO, which stands for "chief executive officer", is the top executive of a company, making the most important decisions and directing strategies to achieve the company's objectives.
He or she is responsible for planning and executing the overall strategy of the company, i.e. he or she is in charge of making all the decisions to take the company towards its goal, and success or failure will depend on them. Although his or her responsibilities vary according to the size of the company, as in larger businesses he or she focuses more on corporate strategy and the most important decisions, in smaller companies he or she may take on a more practical role.
The CEO is a position that carries a great deal of responsibility, as he or she not only has to manage the company's strategy, but also has to meet the needs of employees, shareholders, partners, customers, etc.
Do not confuse the president or owner of the company with the CEO, as the former is in charge of corporate governance, while the latter is in charge of executing the strategies. The chief executive officer is the connection between the management of a company and the operational part of it. Although it is true that in small businesses the CEO and the owner may be the same person, but in large companies these positions are quite distinct.
what are the functions of the CEO?
We tell you in more detail all the functions that this position carries out within a company:
establishing and planning the company's strategy
The CEO, together with the president of the company and the board of directors, defines the objectives, and then it is the CEO who has to ensure that they are met.
The CEO is the person who plans the actions to be carried out in order to achieve the objectives set, and therefore plans the strategies, together with the different departments that make up the company, to carry them out and achieve the objective.
transmitting the company's objectives and mission.
A CEO is not only in charge of the company's strategies, he/she is also in charge of informing the whole team about the objectives to be achieved, how it is going to be carried out and communicating the main mission.
leading the heads of the different departments
A company is usually divided into different areas, e.g. marketing, sales or customer service, and each of the departments has a manager in charge. It is the CEO who must have good communication with them to make sure that the strategies are being followed correctly in order to reach the company's overall goal.
The CEO, as you have seen, has an important role in the communication within a company. Apart from communicating the actions to be carried out and the company's objective, he is in charge of keeping the employees motivated. It is very important for a position like this to have a good leadership, because a good working environment translates into better productivity, while on the contrary, a toxic environment can affect performance.
communicate goals and achievements to shareholders
In large companies and corporations, shareholders are an important stakeholder. A good CEO should keep them informed of goals, achievements, setbacks, results achieved, etc.
making decisions about resources
This is the person in charge of managing the company's resources, together with the company's director and the director of the financial department. This is an important part of their job, since a correct distribution of budgets is what guarantees the fulfilment of actions to achieve the company's global objectives.
Because if one department has more budget than another, according to priorities, it makes a difference.
taking care of customers
As we have told you throughout the post, this position goes beyond the strategic part, and taking care of customers is another task in its long list. You know that nowadays the customer is at the centre of the strategies and it is the CEO who is responsible for all departments to be clear about it. Customer satisfaction is essential for a company to be successful.
At this point it is important that the departments are clear about the profile of the target audience, i.e. that they know their buyer persona.
You have read how the position of CEO is not an easy one, because all power comes with great responsibility, and never better said. Among its main skills must be leadership, communication, adaptability and decision making, among others. Nobody said that being chief executive officer was easy.
we hope we have solved your doubts on this topic and that you have enjoyed reading this article!