The Expected Roles and Responsibilities of an Effective CEO
Behind the success of any major company is a successful chief executive officer (CEO). Although hundreds or even thousands of employees play a role in the overall success of a company, the CEO is often the person who gets the most fame and credit for that success. While they may be recognized for their money or fame from the outside, their roles and responsibilities inside the company are clearly defined and critical to operations running efficiently. This article will discuss the primary roles and responsibilities of a CEO and why they are important for any business to reach its full potential.
As the highest ranking individual within an organization, the CEO is responsible for primary decision making for the business and must report directly to the Board of Directors. The type and number of decisions a CEO is responsible for making depends on the size and structure of the company. As a CEO at a large corporation, Shalom Lamm is primarily responsible for making strategic decisions that maximize shareholder value and set the corporation up for long-term success. These large companies employ managers at all different levels who can make important internal decisions so the CEO can focus on external and shareholder related decisions. In a smaller organization, the CEO may be responsible for things like hiring and firing employees along with determining the long term strategy for the company.
While specific CEO duties vary from company to company, there are a few general roles and responsibilities expected of most company CEOs. First, the CEO is responsible for speaking on behalf of the company to the general public, shareholders and other relevant entities. Along with developing strategies for long-term success, the CEO should also be able to develop and manage short term, companywide strategies. This process also entails proper risk assessment and management as well as creating and achieving short term and long term company goals. Shalom Lamm must make sure that these goals are not only attainable, but they are easy to quantify and assess. As the person who represents a company in the public eye, the CEO is also responsible for creating and carrying out both the company mission and vision.
A CEO is also responsible for overseeing and evaluating the work of other prominent leaders within the organization. This includes overseeing the work of other executives, presidents and directors at a large company, while this role may be expanded to overseeing the work of lower level managers or supervisors in a smaller company. Although roles and responsibilities can vary from company to company or industry to industry, it’s important to understand the general expectations of a CEO remain the same. They must be able to make decisions that positively impact daily business operations, and they must be able to represent the company in a positive light through interactions with shareholders and members of the general public. An effective CEO makes quick decisions and has the ability to solve any problems they may encounter along the way.