It is an acronym that you have surely seen reflected in the media with economic content, but you may not know its real meaning. Well, the CEO figure literally represents the Chief Executive Officer. But his representation at this time affects that the CEO is the top executive of the company and on him fall great responsibilities, such as making the most important decisions and directing the strategies that will lead the company to achieve its objectives.
Such is its importance in the business world at this time that the success or failure of the company will depend on its management. To the extent that his decisions are vital to him development of any kind of business lines. Not only in relation to online or digital businesses, but on the contrary it also covers traditional companies, although at a lower intensity.
In any case, you have to focus on one aspect so that its compression is clearer from now on. And it is that the president of the company is in charge of corporate governance, while the CEO is in charge of executing the strategies. It is a small nuance that reveals its true functions in the business sector. Not surprisingly, it is a term that has evolved over time and has been gathering new functions since it emerged a few years ago.
The functions of a CEO
The CEO or Chief Executive Officer must take care of turn some tasks into reality. As for example, in the following that we are going to expose you below:
This is the person who is in charge of making the decisions regarding investments and the use of business budgets to achieve profits. Hence the importance of this business position.
On the other hand, another of his most relevant tasks is directed towards planning his own business. When defining their functions, a fact that cannot happen beforehand cannot be forgotten and that is that first of all the CEO must design a business plan un "Business Plan". Or what the same, a business plan in your line of business, whatever its nature.
Organizational tasks is another very important part of your career program. In this sense, other of the most important functions of a CEO is knowing how to organize the different directors of the departments that he has in his organization and thus supervise their operation.
Their power of coordination is another of the added values that this professional profile must show. Not in vain, you have to know coordinate the different departments; As the CEO that you are, after all, you will have no choice but to have the ability and aptitude to coordinate all the departments.
Of course, you must know how to lead a professional team so that all objectives are met in a more or less reasonable period of time. You have to understand that to be a good CEO you have to know how to direct, motivate and incentivize the staff in charge. Every day this role of the CEO is more important to know how to motivate and retain the talent of his organization.
Controlling the entire process in the company is another of the requirements that must be met in this managerial position. With a high capacity to keep track of the execution of the different strategies to follow and compliance with the business plan that has been established.
Also other skills that should not go unnoticed at any time and that are the ones that we are going to mention below:
- Maintain relations with investors and shareholders.
- Identify and set priorities according to the period contemplated in the management or organizational program.
- Define global strategies of the company in areas such as IT, HR or Business.
Skills they must present to exercise the position
Another aspect that needs to be assessed from now on is that which has to do with their abilities and which have nothing to do with their functions. Where they conform after adding various factors that acquire a special relevance in this profession or managerial position. For example, through the following actions:
- A solid academic training.
- Extensive experience in management positions.
- Have certain personal qualities.
- And of course they have to provide a great capacity for commitment to your company.
All of these together will result in the emergence of an excellent CEO or Chief Executive Officer. Beyond the motivations you have in each moment of your life. Because in effect, it cannot be forgotten from now on that this position will be a good strategist and will show his decision-making skills, since he must be able to draw up the best strategies that will lead to success in his company.
Specific characteristics of a good CEO
One of the most important lies in having to be very open in making decisions. That is, to have the open mind It means being willing to try new things, accepting various possibilities to solve a problem, and taking risks when necessary.
Although perhaps this special manager is distinguished by his predisposition to make decisions that are fair and consistent with his own company. In the sense that it is necessary to know how to evaluate all the factors, looking for what is best for the business and for the interested parties.
Communication is another of the skills that should not be lacking in a good CEO. To the point that one of the most decisive points to identify them Because the end of the day this fact implies relationships with different audiences and, sometimes, even with different cultures. It may be the case where you find yourself on more than one occasion.
Being a dialogue is another added value to exercise this management position. Well, don't forget that from this moment on, you will have no other solution than to face various problems, in addition to the pressure inherent in the position. In which you will have to mediate between the different parts that make up the process.
Nor can it be forgotten that his dialogue spirit is another of the common denominators of this highly qualified professional profile. Among other reasons, because it must provide a very strong sense of peace that will serve to mediate to a large extent in the processes in which it is immersed.
Like his skills in diplomacy so that all issues can come to fruition, as it is after all his wishes to take over this professional activity at any time in his life.
Other positions with similar characteristics
In any case, it is quite common for some positions to be mixed with the same functions but that provide small differences that you should take into account from now on. In particular, to have a correct understanding of what the CEO really is. Like the ones that we are going to provide you below:
CMO (Chief Marketing Officer). Responsible for Marketing management, such as sales management, product development, advertising, market research and customer service. Its main function is to maintain a good relationship with end customers.
CFO (Chief Finance Officer). Financial Director of the company in charge of deciding the investment, financing and risk. He is in charge of the economic and financial planning of the company.
CIO (Chief Information Officer). Analyze what benefits the company will obtain from new technologies. He focuses on improving efficiency and is responsible for the company's information technology systems at the process level.
CTO (Chief Technology Officer). He is responsible for the engineering team and for implementing the technical strategy to improve the final product.
CCO (Chief Communications Officer). He is in charge of the corporate reputation of the company, contacts the media and develops Branding strategies.
COO (Chief Operating Officer). He is the Director of Operations, and supervises how the product creation and distribution system is working. Working as COO, you often rise to CEO as you already understand the mission and goals of the company and are the right hand of the CEO.
As you may have seen, there are many requirements that this professional figure must meet and you may be interested in developing these tasks. If it is in this way, you will have no choice but to follow the steps that we have pointed out and you may be in a position to develop this profession, which on the other hand is closely linked to online or digital businesses. Because at the end of the day, their functions range from training their employees to a good work team. As one of the most important aspects for the growth of the company since it is after all one of the most relevant objectives.