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Very few people are working in some sort of private sector and have not heard the name of the CEO. CEO, meaning full form, is the 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. To take care of their interests in the company, shareholders appoint the Board of Directors.
The Board of Directors, in their meetings, decides a CEO for the company. A CEO is like a permanent company employee, and all the other senior officers, like the chief financial officer, chief technology officer, chief marketing officer, 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 a 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 company's resources in the full interest of all the stakeholders, managing the company's overall operations, etc.
Secondary responsibilities include creating a communication bridge between the Board of directors and the company. He also appoints various subordinate officers to the company. He communicates to the employees through various means like email, messages, letters, etc. A CEO has a great responsibility to keep employees' morale up all the time so they can do better.
Appoints other officers and managers for the benefit of the company.
Communicate every major decision to the Board of Directors and get approval from the Board.
Motivates all the employees so that they work more and more in the company's interest.
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.
The company's success is squarely put on the shoulders of the CEO. Some of the best CEOs are synonyms with their company name. Mark Zuckerberg, Bill Gates, Steve Jobs, Indira Nui, Chandra Kocher, and Shikha Sharma are some of the best-known CEOs from India and the world.
A company's CEO is like a Boss and the ultimate owner. If they make any decision, there is little chance that any other company authority will reverse it. Even the Board of Directors 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 made by the CEO was reversed or declined by the Board.
Becoming a good CEO is not a difficult task. Per industry standards, the following points make any CEO good or bad.
A CEO must have all the required skills and expertise. A CEO must possess good communication skills, an excellent personality, a High level of Honesty and integrity, a Good knowledge base, many years of experience, and real education.
A good CEO is a motivational speaker who always motivates subordinates to achieve great heights.
They love the company and all its stakeholders. There should not be any sort of hate or 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 be able 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.
Being a CEO in a company is way different from being just a business operator. Focusing on the people is one of the best things for a CEO.
You have to find someone who can articulate the vision, encourage people, tune into who is growing and who is believing, and then move on to the mission. How can we grow them financially and professionally?
Taping into that emotional equity is of significant value for the CEO. Now, business owners must grow revenue all day and check the reports. An owner must consider how this person feels, which is super important. It is hard for an owner to make that switch.
So, I would like to find a CEO who can be both of those things super are, and the people who do it well will be the singing stars of what we see going forward. But knowing your strengths as either a CEO or an operator or if you are that lucky few that can do both is kind of cool.
CEO stands for the chief executive officer, and if you look at the definition of a chief executive officer, what that means is they are responsible for the company. If you are incredibly frustrated that you don't have the authority and cannot fix it, you must 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 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 hands on the desk to get a product service off the 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 part of a CEO and fundraise, manage investors, and drive the company's vision.
Most importantly, a CEO must bring all 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, do them to the best of your ability.
In the early days of a business, very few people will be capable of generating the vision for the Business and setting the strategy for the Business.
And communicate the vision in a way that will translate it to make sense to all the different constituencies or stakeholders in and around your company.
And that tends to be sort of the broad buckets your. The CEO's role in talent and human capital is different. Especially in the early days, those first-time 5, 10, and 20 employees are the ones that will make or break the Business. They are the ones that end up doing the lines share work.
To understand how many years it takes for a person to become a CEO, we need to understand some basics. Becoming a CEO depends on various factors. Some factors that determine a CEO are as follows:-
Company Turnover: - If the turnover is very high, 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. A minimum of 15 years at a higher level is required to become CEO of this organization.
Nature of Work: Organizations hire CEOs depending on the nature of their work. So, if your area of work does not match the requirements, 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 many employees. Any organization can have only one CEO, and when more than one candidate is available, it is understandable that someone must wait for a few 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 make various forward-looking decisions daily. No company will hire a CEO who cannot deliver on core areas and is always lacking in expertise. Along with managerial skills, a person must have computer skills, good communication skills, an excellent personality, and good mannerisms for becoming a CEO.
Experience: - If you think a CEO always comes from the top, you are wrong. It is not always true that a board of directors will appoint a CEO from outside the company. Often, 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 a CEO by the Board of Directors.
Indira Nui is an example of this sort of promotion. In this way, you must work for at least 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, or any government undertaking may also have a CEO.
As the name suggests, he is the main person dealing with the day-to-day affairs of any organization.
A board of directors generally runs an organization, but the Board has no executive power. The Board takes the decision, and a CEO must 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. The president looks very powerful on paper, 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 or sometimes just like a bigger shareholder.
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 them 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, if shareholders are not happy with the company's functioning, they may direct the Board of Directors to remove a CEO.
Thirdly, the Board of Directors can always summon a CEO into the board meetings for any wrongdoings. Even in some cases, boards pressure the CEO to deliver more and more profit and put an extra burden on them.
CEO: The chief executive officer handles the organisation's day-to-day affairs. The person takes every action in the company on behalf of the Board of Directors. He and his team work on various aspects like corporate vision, strategy, annual plans, budgets, revenue, growth, and expansion. He communicates all the decisions made by his subordinate 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 suggests, the chief financial officer is responsible for all financial transactions like payables, expenses, receivables, and treasury. He creates and submits all sorts of financial reports about the organization. Month-end reports, year-end reports, and budget creation are the main work areas of a CFO.
CIO: The chief Information Officer holds various responsible work in an organization. He ensures that all the data is processed well and within time. Salaries leave records, IT and data management, production data, Logistics data, etc, are dealt with by him.
CMO: The 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 a marketing perspective.
CTO: - Today is the time of technology and digitalization, and without understanding the importance of these two, it is quite difficult to survive in any organization. The chief technical officer post has evolved over the last 20 years. Before that, it was not a clearly defined position. He gives direction technically to the organization.
His technical inputs on various aspects like product offerings, product development, and innovation are quite helpful in gaining a customer base and business prospects. Some analysts put the CTO just under the CEO because of its importance.
Again, all the posts depend on the organizational structure of the organization. The Board of directors creates, merges, and removes any particular positions from an organization.
Conclusion: - Your job is three things. One is to create strategy for the Business, division for the Business, and to communicate it. The second is to build a team and ensure that the organization has the talent it needs to succeed. Free would say the third thing is to ensure enough cash in the bank.
Also, it is important to ensure 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, team, execution, and enough cash in the bank. If you slow down too much, your startup will die.
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