Chief Executive Officer (CEO). What does he/she REALLY do?

So you are taking your first steps in your company and you find yourself organizing the structure of the business. I'm sure you've already realized that there are several key positions that will be fundamental to the future of the project, and one of them is the CEO.

Even though at the beginning many of us do a little bit of everything, the ideal thing is to define who has (possibly) the best profile for each position. You should take as much time as necessary to choose from the secretary to the general manager.

Do you want to know who is the ideal candidate to be the CEO? Our team prepared a guide for you to see the characteristics of the position and choose the ideal professional. Don't miss it!

What is the CEO of a company?

The chief executive officer or CEO is the top manager of an organization, so he is the one who faces suppliers, partners and the corporate government. They have the authority to monitor the management of the company and can make changes as they see fit.

You will be surprised to know that they are professionals with a good academic profile and that in most cases they have extensive experience in the sector, which facilitates the daily work and guarantees part of the future success of the company. 

Before choosing the CEO of your business, you should take into account the CV of this professional. Why? Remember that he/she will be the top manager of the corporation, so all the marketing strategies, operations and sales of the company will be in his/her hands. 

All this means that we can say that it is unlikely to find a successful company with a mediocre or low-level CEO. So you will have to choose the one that best fits your company's needs.

Some of the responsibilities of the Chief Executive Officer (CEO)

There are many responsibilities that the CEO of your company will have. Let's take a closer look at some of them:

1. High-level decisions

That's right, you as CEO will have to make the most important decisions of the company. Part of the organization's future depends on this, so you must take into account the pros and cons of each choice you make.

What decisions does a CEO make? Well, there are many, but most of them are focused on growth strategies, changes in sales policy, recruitment and much more.

That's why you need a CEO who has ample problem-solving skills and knows how to handle uncertainty. Otherwise, how will he or she be able to lead your company to success?

2. Motivate all employees

Yes, a CEO is first and foremost a leader, so he/she has the role of motivating and guiding all members of his/her organization. It doesn't matter if it's the secretary or the operations manager, you have to make sure he or she is attentive to all staff.

A good way to do this is through periodic visits to each professional to ask them how they feel and what expectations they have with the project. This will clear up a lot of doubts and boost their morale for what lies ahead.

Has it ever happened to you that your boss visits you to encourage you and congratulate you on your good work? If so, you know how good it feels and it is something that every CEO of a company looks for, that his or her team is happy at all times.

3. Report on short- and long-term goals

A key role of the CEO is to report on new short- and medium-term goals and projections You have to make sure that he/she has excellent communication skills, because this is where the message gets across clearly to the whole team.

You can do this through general conferences or small meetings with each department. Here you will set the goals in each area, quarterly, half-yearly and annual projections, as well as the strategies to achieve them.

4. Directing the company's transactions

We cannot forget the importance of a CEO in the financial area of the company. He will have to be informed of the current situation of each of the company's financial accounts, from the available capital to the budget that will be allocated to each item.

It is true that this can be handled by the CFO, but the CEO will be aware of the major day-to-day operations.

5. Report to the shareholders' meeting on the results obtained.

There is no doubt that this is one of the most important tasks of your CEO. It is very likely that your company is composed of a board of shareholders who make the final decisions, and they will be informed by the CEO.

This professional will report on the progress and goals achieved, long-term projections and the next actions to be taken to conquer new markets.

Remember when we mentioned that the CEO is the visible face of a company? Here is the reason for this statement.

What is the profile of a CEO?

Are you looking for a CEO for your company? Discover below some features that any candidate who wants to be the CEO of a company must have:

1. Academic degree

Yes, it is necessary for a CEO to have at least an undergraduate degree to solve the technical problems your company has. Such is its importance that nowadays we find many CEOs who have one or several master's degrees in their background.

Is it compulsory? No, but it is desirable that the candidate has a good academic career. This will solve many problems, so don't overlook it.

2. Leadership

In the previous paragraphs you saw all the functions that a CEO has in a company. All of them can be gathered in one single skill: leadership. 

"Everything falls or rises because of leadership," said an expert author on the subject. A CEO must have an excellent ability to influence in order to delegate in the best way each of the areas of the company.

He or she will also have to convince others about the new projects coming up in the organization and this can only be achieved with good leadership skills and charisma.

3. Communication

That's right, no professional can aspire to the position of CEO if he or she does not have excellent communication skills. 

Make sure you know how to dialogue, resolve conflicts and reach the emotions of each of your employees. This will make day-to-day management of the company much easier and give you peace of mind for the future.

Is a CEO really necessary for my company?

This is one of the most important questions you can ask yourself as an entrepreneur. The reality is that every organization needs a leader to guide operations and set the long-term vision.

So yes, your company needs a CEO, although in practice it is not necessary that he or she covers all the functions described in the previous paragraphs. Everything will depend on the size of the organization and the projections they have in the medium and long term.

If you want to have a successful company that transcends in time, we don't know how to tell you the importance of a CEO for your company. 

With a good leader it's easier to achieve the goals that have been proposed, so it's not a good idea to skimp money on this hiring.

Do you have any other key qualities that a CEO should have? If so, leave it in the comments so that other readers know how to choose the ideal CEO for their corporation. See you next time!