The Chief Executive Officer (CEO) is far more than an organization’s chief decision maker. The CEO’s role can include everything from setting the organization’s vision to rolling up his or her sleeves to help keep the doors open.
Learning to wear the many hats required of a CEO is a journey in personal growth. Few of us are born with all the skills needed to move from authority figure to visionary leader, diplomat, and communicator. The CEO’s journey is one of personal discovery as much as practical lessons.
This article will look at some of the roles the CEO needs to fill to succeed in today’s world.
The CEO title can sometimes mean “Chief Everything Officer,” especially in the early stages of an organization. Unlike an established CEO, who oversees strategy and vision at the highest levels, the Chief Everything Officer rolls up his or her sleeves and gets into the details of day-to-day operations. The CEO is not only the decision maker but also the one carrying out decisions. The position comes with advantages and risks.
One advantage is that the CEO gains intimate knowledge of the organization, from product development to marketing and customer relations. Cost efficiency is another advantage, which may be critical in the startup or early phases of the organization. The organization may not be ready – or able – to fill roles in a timely manner. The overflow often falls to the Chief Everything Officer, who fills in the gaps as needed.
The downside can be burnout and stress, which carries both personal and economic costs. People in the CEO role need to acknowledge their limits, delegate when necessary, and scale before a talent shortage sets in.
At the opposite side of the spectrum from “Chief Everything Officer” is the CEO’s role as visionary leader. More than just a decision maker, the visionary leader sets the tone for the organization: Its goals, hopes, and its dreams for the future.
While the CEO’s vision should be clear and actionable, it must also be flexible enough to allow growth and development. One CEO commented, “Direction is made by long term vision . . . and you modify it continuously, because in this environment you need to understand what is happening around the world.”
A clear vision needs to be based on a rational evaluation of the business climate and markets, but at the same time be inspirational and aspirational. The CEO must inspire others to follow their lead: “It’s not about sending orders out; It’s really about making people believe you know the right way.”
The CEO needs to follow vision with strategy. While vision sets the tone and direction of the organization, strategy decides the actions that bring vision to life. Being a strategic thinker goes beyond simply being a decision maker since the CEO will need to include different viewpoints and satisfy competing interests. That may require the CEO to be the organization’s chief diplomat.
Strategic decisions include identifying new markets, analyzing demand and developing new products, and maintaining competitive advantage. The CEO will have to consider resource allocation for new and ongoing projects, including whether to raise new capital or reinvest profits. Those decisions, in turn, must be based on the CEO’s assessment of the economic climate and how best to manage risk.
The CEO must often thread the needle between short term results and long term growth. The balance is particularly delicate in publicly traded companies, in which success is often measured by the latest quarterly reports. A strategic CEO must find ways to satisfy the concerns of many stakeholders – from shareholders and employees to customers and partners – to ensure the long-term health of the organization.
The CEO can also be an “organizational architect” by shaping its culture. The CEO can use the role to create the conditions for others to thrive and succeed. Creating the conditions for success requires more than being a decision maker. The CEO must allow others to become collaborators and co-creators within the organization.
The first step is to create a sense of belonging in the workplace. When people feel connected, valued, and supported at work, their performance and engagement levels skyrocket. A sense of belonging is the result of a shared vision, responsive leadership, and inclusive policies – all of which start at the top with the CEO.
The next step is to develop a learning culture that prioritizes growth and development. Organizations with a strong learning culture are more innovative, productive, and profitable than their competitors. They promote innovative thinking to leapfrog the competition with new products and services. The CEO sets the tone for growth by making it a core organizational value and by being a role model for personal growth.
Finally, the CEO is the “face of the organization” and its “Communicator-in-Chief.” Whether advocating core values to team members or promoting initiatives to stakeholders, communication is the CEO’s superpower. And it has never been more important.
The days of politically correct, “corporate speak” announcements are over. In today’s world, employees, stakeholders, and customers expect CEOs to speak authentically about the issues affecting them, according to Forbes: “The CEOs earning the most respect right now are the ones who weave purpose and values into everything they say.”
To leverage this superpower, begin by learning about communication styles and how they can be used to improve relationships inside and outside the organization. Speak authentically and consistently, letting your audience know what you stand for and how your actions align with your words.
If you would like to learn more about leadership and the many roles a CEO needs to succeed, please contact us.
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