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There are very few people who are working in some sort of private sector and have not heard the name of the CEO. CEO meaning or full form is Chief executive officer. He has the final authority on all the company related matters.
A company has three main components: - Shareholders, Board of directors, and CEO. Shareholders are the individuals/corporations/companies that have put their money into the company. Shareholders for taking care of their interests in the company appoint the Board of directors.
The Board of directors in their meetings decides a CEO for the company. A CEO is like a permanent employee of the company and all the other senior officers like the chief financial officer, chief technology officer, chief marketing offers, etc report to the CEO.
If a company is getting good profits, it gets a reward from the board of directors and if the company is at loss, the board of directors may warn and remove the CEO. Without his approval, no strategic decision can take place in a company.
The Chief Executive Officer (CEO) is the highest-ranking executive for a private limited company. Any independent legal entity or any nongovernmental organization can also appoint a CEO. Even some government autonomous organizations like BSNL also have CEOs in place.
Primary responsibilities include making major corporate decisions, managing the resources of the company in the full interest of all the stakeholders, managing overall operations of the company, etc.
Secondary responsibilities include creating a bridge of communication between the board of directors and the company. He also appoints various subordinate officers into the company. He communicates to the employees also through various means like email, message, letters, etc. A CEO has a great responsibility to keep the morale of employees up all the time so that they can do better.
Appoints other officers and managers for the benefits of the company.
Communicate every major decision to the board of directors and take approval from the board.
Motivates all the employees so that they work more and more in the interest of the company.
No major decision can take place without the final approval of the CEO. He is like the ultimate boss of the company.
Take strategic decisions like the expansion of business, curtailing of business, etc.
Company's success is squarely put on the shoulders of the CEO. Some best CEOs are the synonyms with their company name. Mark Zuckerberg, Bill Gates, Steve Jobs, Indira Nui, Chandra Kocher, Shikha Sharma are some of the best-known CEOs from India and the world.
For a company, a CEO is like a Boss and the ultimate owner. If any decision is taken by him or her, then there is very little chance that it will be reversed by any other authority of the company. Even the board of director’s feels threatened to act against the CEO.
A CEO has the trust of all the employees and when employees are the backbone of any organization. In the recent past, we have seen various instances when employees went on strike only because any decision taken by the CEO was reversed or declined by the board.
Becoming a good CEO is not a difficult task. As per industry standard, the following are some points which make any CEO, good or bad.
A CEO must have all the required skills and expertise. Good communication skills, excellent personality, a High level of Honesty and integrity, a Good knowledge base, many years of experience, and real education are some of the qualities a CEO must possess.
A good CEO is like a motivational speaker and always motivates the subordinates to get great heights in the company.
He/ She love the company and all its stakeholders. There should not be any sort of hate and bad feelings in him/her towards anyone.
A good CEO always looks for Excellency and future growth. He/she understands the value of making the right decision at the right time.
There is a high amount of risk involved while running a business. And a risk-averse CEO can never be a good CEO. He/she must have the ability to make a smart move with calculative risk.
A good CEO does not presume that the company cannot run without him. When he starts thinking like this, he becomes very casual and non-professional in his work. So a good CEO always believes that he is working as an employee of the company and he should always respect and follow all the rules and guidelines of the company.
Be a CEO in a company is way different than being just a business operator. For a CEO focusing on the people is one of the best things.
You have to find a person that can articulate the vision and encourage people and tune into who is growing and who is believing and then to the mission. A how can we grow them financially professionally all those things.
Being able to tap into that emotional equity is something that is of significant value for the CEO. Now for a business owner, they have to grow revenue all day long and check the reports. An owner needs to think about how this person is feeling which is super important it is hard for an owner to make that switch.
So like to find a CEO that can be both of those things super are and the people who do it well are going to be the singing star of what we see going forwards. But being able to know your strengths as either a CEO or an operator or if you are that lucky few that can do both that is kind of cool.
CEO stands for chief executive officer and ens essentially if you look at the definition of a chief executive officer what that means is they are responsible for the company. .If you are going to be incredibly frustrated that you don't have the authority and cannot fix it, and then you do need to be a CEO.
One of the things that did give you pause that you should consider if you are thinking about becoming a CEO is actually, it is very different from being an individual contributor or director manager of a particular part of that product. It becomes extremely important, right after the product-market fit.
Early on it is all hand on the desk to get a product service off that ground. Later there are a few things that only the CEO can do. A CEO convinces people to follow them and hire employees for the company, meaning also a part of a CEO and fundraise, manage investor, drive the vision of the company.
Most importantly a CEO has to bring all of those things together to build a great product or service. Being a CEO is a very specific skill set. And unless you are signing up to do those things, and do them to the best of your ability.
In the early days of a business, there are very few people that are going to be capable of generating the vision for the business are setting the strategy for the business other than you.
And communicate the vision in a way that is going to translate it is going to make sense to all the different constituencies or stakeholders in and around your company.
And that tends to be sort of thee broad buckets your. The CEOs roll all-around talent and around human capital ends up being two different things. Because especially in the early days those first time 5, 10, 20 employees are the ones that are going to make or break the business they are the ones that end up doing the lines share work.
To understand how many years a person takes in becoming a CEO, we need to understand some basics about that. Becoming a CEO depends on various factors. Some factors that determine a CEO are as follows:-
Company Turnover: - If the turnover is very high, it means an individual must have enough capability and expertise to handle it. Therefore, companies with high turnover take CEOs with very high experience in core areas. Minimum 15 years are required at a higher level for becoming CEO of this sort of organization.
Nature of Work: - Organizations hire CEOs depending upon their nature of work. So if your area of work does not match the requirement, you can never become the CEO of that organization.
Human Resource Size: - Maybe the turnover of one particular organization is very low, but it has a high number of employees. Any organization can have only one CEO and when more than one candidate is available, it is quite understandable that someone has to wait for more years.
Good Managerial Skills And Forward-Thinking: - Without any skills, you cannot become the CEO of any company. The whole performance of the company depends on the CEO. You need to manage all your staff and at the same time, you have to take various forward-looking decisions daily. No company will hire a CEO who is not able to deliver on core areas and always lacking in expertise. Along with managerial skills, a person must have computer skills, good communication skills, excellent personality, and good mannerism for becoming a CEO.
Experience: - If you think that a CEO always comes from the top, you are wrong. It is not always true that a board of directors will appoint a CEO always from outside the company. Many times, an organization appoints a person with good experience as a CEO. For example, a president, Vice president, vice CEO, or head of some other verticals may also be appointed by the board of directors as a CEO.
Indira Nui is an example of this sort of promotion. In this way, you have to work for a minimum of 15 years to become eligible for a CEO. That year also depends on which stage you joined.
An executive takes 25 years to become a CEO but a manager may get this prestigious post in 15 years. So becoming a CEO depends on a whole lot of things. It also differs on a case to case basis.
CEO is the Chief Executive officer or in some way the administrative officer of a company. A Nonprofit organization, independent legal entity, any government undertaking may also have a CEO.
As the name suggests, he is the main person dealing with the day to day affair of any organization.
An organization is generally run by a board of directors, but the board does not have any executive power. It is like the board takes the decision and a CEO have to implement it.
Take the example of our country “India'', which has a parliamentary type of democracy.
Here all the works are taken and done by the president of India but the prime minister does all the work. On paper, the president looks very powerful but in reality, the prime minister is more powerful. The same principle applies to any organization.
The Board of directors takes the decision and a CEO implements it. So you can understand the importance of a CEO in any organization.
He is responsible for submitting all the relevant papers to the board of directors and at the same time he is also responsible for any positive and negative financial results. Companies are mainly known by their CEO name.
When we talk about “who is more powerful”, the answer is the board of directors. Yes, a CEO has different sorts of power and he or she is an important person for the organization.
But a CEO is just like an employee of the company or sometimes just like a bigger shareholder of the company.
The main difference between the power of the CEO and the Board of directors is the appointment and removal clause. The Board of directors appoints a CEO and the same board may remove him or her with or without giving any valid reason for removal. Can you understand how powerful this clause is?
Secondly, the board of directors enjoys the faithfulness and trust of shareholders but a CEO does not hold this power. So in case, shareholders are not happy with the functioning of the company, they may direct the board of directors to remove a CEO.
Thirdly, the board of directors always holds the power to summon a CEO into the board meetings for any wrongdoings. Even in some cases, boards pressurize the CEO to deliver more and more profit and put an extra burden on him or her.
CEO: - Chief executive officer is the person responsible for handling day to day affairs of the organization. Every action in the company is taken by this person on behalf of the board of directors. He along with his team works on various aspects like corporate vision, strategy, annual plans, budgets, revenue, growth, and expansion. He communicates all the decisions by his subordinate’s officer to the board. He is head of all verticals of an organization.
COO: - This person works as a CEO, but there is a high difference between the two. It stands for the chief operating officer. So He works on the parts of the operations of an organization. The CEO creates and validates the plant and the COO implements it. He works under the CEO.
CFO: - As the name itself suggests, the chief financial officer is responsible for all financial transactions like payables, expenses, receivable, and treasury. All sorts of financial reports about the organization are created and submitted by him. Month-end reports, year ends reports, and budget creation are the main work areas of a CFO.
CIO: - Chief Information Officer holds various responsible work in an organization. He ensures that all the data is processed in a good manner and within the time frame. Salaries, leave records, IT and data management, Productions data, Logistics data, etc are dealt with by him.
CMO: - Chief marketing officer generally deals with all sorts of marketing. Brand creation, advertisement, product offerings, customer relationships, target area, etc come under the preview of the CMO. Here COO inputs are very much in need. For example, the COO decides to open a new office in some particular location to target potential customers living there. CMO will implement it from the perspective of marketing.
CTO: - Today is the time of technology and digitalization and without understanding the importance of these two it is quite difficult to survive for any organization. The chief technical officer is the post that evolves in the last 20 years. Before that, it was not a clearly defined position. He gives the direction technically to the organization.
His technical inputs on various aspects like product offerings, product development, and innovation are quite helpful in gaining more customer base and business prospects. Some analysts put the CTO just under the CEO because of its importance.
Again, all the posts depending on the organizational structure of the organization. Board of directors creates, merge, and remove any particular positions from an organization.
Conclusion: - Your job is three things. One us to create strategy for the business, division for the business, and to communicate it. And the second is to build a team and to ensure that the organization has the talent that it needs to succeed. And Free would say the third thing is to make sure there's enough cash in the bank.
Also, the important thing to make sure the company executes its plan including being properly financed. All three of those rules are critical.
You cannot have a successful business without a good strategy a good team and good execution and enough cash in the bank. If you slow down too much your startup will die.
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