The previous three articles were dedicated to three very important positions in the company structure: HR Manager, Production Manager and Manager of Finance. In addition to these, today we will go higher in the structure of the company and talk about responsibilities, international understanding and skills of a Chief Executive Officer, or CEO.
A chief executive officer or simply chief executive is one of the highest-ranking corporate officers (executives) or administrators in charge of total management. It is usually an individual selected to report to the board of directors.
Responsibilities
It is the responsibility of the CEO to keep the company's strategic vision. The core duty of a CEO is to coordinate business outside of the company while guiding employees and other executive officers towards a central objective. Moreover, a CEO must take a balance of internal and external initiatives to build a sustainable company. To gain a better overview, we divided CEO's responsibilities based on the size of the company:
- For large companies, the CEO primarily coordinates external initiatives at a high level, e.g. acquisitions, mergers and overall coordination with other companies.
- For newly established companies, the acting position of a CEO is much different. As there are no other executives [HR, marketing, production, etc.] it is the duty of the CEO to assume those positions.
- Mid-sized companies simply put CEO in the middle position, so he is partly responsible for internal and partly for external initiatives.
International use
In some European Union countries, there are two separate boards, one executive board for the day-to-day business and one supervisory board for control purposes (elected by the shareholders). In these countries, the CEO presides over the executive board and the chairman presides over the supervisory board, and these two roles will always be held by different people. This ensures a distinction between management by the executive board and governance by the supervisory board. This allows for clear lines of authority. The aim is to prevent a conflict of interest and too much power being concentrated in the hands of one person.
In other parts of the world, such as Asia, it is possible to have two or three CEOs in charge of one corporation. In the UK, many charities and government agencies are headed by a chief executive who reports to a board of trustees or board of directors. In the UK the chairman of the board in public companies is more senior than the chief executive (who is usually known as the managing director).
Structure
Typically, a CEO has several subordinate executives, each of whom has specific functional responsibilities.
Common associates include a chief financial officer (CFO), chief operating officer (COO), chief technical officer (CTO), chief marketing officer (CMO), chief information officer (CIO), chief creative officer (CCO), chief compliance officer (CCO), and a director, or Vice-President of human resources.
Skills
We can divide the skills that a CEO should posses into two groups; first is a set of characteristics describing the individual and second is a list of skills these people employ to get results.
INDIVIDUAL
Integrity/ethics
Analytic intelligence
Sense of urgency
Willingness to ask for help
Decision making
Ability to simplify
Leadership
Openness
Communications skills
People empathy
Potential problem identification
Vision/perspective
Ego drive
Non-political
Endurance
Willingness to take the lead
RESULTS ORIENTATION
Market and customer knowledge
Some familiarity with technology
Identifies, grows, and use core competencies efficiently
Establishes strategy
Focuses on profitability
Builds a team
Defines clear cut objectives
Delivers objectives
Removes obstacles for the team
Establishes and enforces a culture
Asks the right questions
Focuses on both short and long term
Early problem identification
Ability to solve a problem
Encourages continuous learning at all levels
Reinforces mobility of the team and its core competencies
Knowledge
The formal education and experience required by top executives vary as extensively as their responsibilities do, but many of these workers have at least a bachelor's degree and considerable experience.
Many CEOs have a bachelor's or master's degree in business administration or a more specialized discipline. The specific type and level of education required often depends on the type of organization for which top executives work. Some top executives in the public sector have a degree in public administration or liberal arts. Others might have a more specific educational background related to their jobs.
Many chief executive positions are filled from within the organization by promoting experienced lower level managers when an opportunity arises. In industries such as retail trade or transportation, for example, individuals without a university degree may work their way up within the company and become executives or general managers. When hiring top executives from outside the organization, those doing the hiring often prefer managers with extensive managerial experience.
Development of every CEO may be accelerated by participation in company training programmes that increase knowledge of company policy and operations. Participation in conferences and seminars can expand one's knowledge of national and international issues that influence the organization and can help the participants develop a network of useful contacts. To be promoted to an even higher level, managers who have experience in a particular field, such as accounting or engineering, may attend executive development programs created based on their backgrounds.
Chief executives also can help their careers by becoming familiar with the latest trends in management, by attending national or local training programmes and certification programmes. Certification is usually held by individuals at all professional levels, from those seeking to enter management careers to those who are already senior executives. Certification is not necessary for promotion, but may be helpful in developing and demonstrating valuable management skills.
CEOs may get a top executive position, such as executive vice president, in their own company, or they may take a corresponding position in another company. Chief executive officers often become members of the board of directors of one or more companies, typically as a director of their own company and often as a chairman of its board of directors. Some top executives establish their own companies or become independent consultants.
So, either you are looking for a candidate for a CEO vacancy or you would like to become one, now you know what does this position all include.
Exercise: join the expressions 1 - 7 to their definitions A - G
1. board of directors
2. core duty
3. supervisory board
4. to preside
5. board of trustees
6. endurance
7. obstacle
A. main responsibility
B. a group of people that controls the financial affairs of a charity or other organization
C .to lead or be in charge of a meeting, ceremony, etc.
D. a group of directors who represent a company's shareholders, advising the directors who manage the company and checking that everything is done correctly
E. the ability to continue doing something difficult for a long period of time without complaining
F. a situation, an event, etc. that makes it difficult for you to do or achieve something
G. the group of people chosen by shareholders to control a company, decide its policies and appoint senior officers
KEY: 1 - D, 2 - A, 3 - G, 4 - C, 5 - B, 6 - E, 7 - F
Useful expressions
SUSTAINABLE - that can continue for a long time
BACHELOR'S DEGREE - an academic degree awarded for an undergraduate course or the course that range from two to six years depending on the region of the world
MASTER'S DEGREE - an academic degree granted to individuals who have proven a mastery of a specific field of study or area of professional practice
BUSINESS ADMINISTRATION - the study of how to manage a business
LIBERAL ARTS - subjects of study that develop students' general knowledge and ability to think, rather than their technical skills
EXTENSIVE - covering a large area; great in amount
ENGINEERING - the activity of applying scientific knowledge to the design, building and control of machines, roads, bridges, electrical equipment, etc
SEEK - to try to obtain or achieve something
VICE PRESIDENT - a person in charge of a particular part of a business company
CHAIRMAN - THE PERSON WHO LEADS A COMPANY'S BOARD OF DIRECTORS
VACANCY - a job that is available for somebody to do
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