CEO
Roles
12
tasks and actions that should not be ignored
The succession of the CEO has always been one of the
most important and risky responsibilities of the Board of Directors in the
nomination for a position. A failed selection process can destroy the values an
organization has acquired over previous years. The reason for this choice may
be the time factor or the lack of readiness of the second leadership line in
the organization, or for those external pressures. In any case, the CEO must
have roles and tasks that help him manage the organization and its components
in a peaceful manner. The organization are based on three main poles, namely the
organization owners, the board of directors, in addition to the executive
management. Since the most important role in this triangle revolves around the
executive branch, it is necessary to understand the most important roles of the
top of the executive pyramid - the CEO - so that the gaps towards achieving the
desired success are reduced. Therefore, in this report, EXCPR Consulting and
Business Management presents the most important roles that the CEO must play
explicitly and clearly. The greater the volume of these recommendations is
implemented, the more it contributes to the management of the organization's
work towards the standard state that stakeholders aspire to reach. CEOs are the
highest executive in the organization, and their primary responsibilities
include key decision-making, delegation, operations and resources management,
organizational structure management, and acting as the main point of contact
between the board of directors and the organization's operations.
Strategic Planning
The CEO should first understand the mission for which
the organization came very accurately, which entails understanding the
strategic plan to be achieved from interim and annual goals. By achieving this
level of daily awareness and awareness, it will help reschedule the
organization's tasks and steer its compass in the direction for which it
actually came. The Foundation's past day-to-day actions may not be in harmony
with those for which the "mission" came, resulting in the loss of
many different opportunities and resources. The CEO should also realize that
his choice for the position came primarily to bring about change in the
organization and manage the wheel of work towards achieving the vision in the
fastest time and at the lowest costs. Assistant managers are often more
integrated into the day-to-day operating activities of the organization, which
require extracting the role of the CEO by compiling such results and approving
the organization's strategic plans. Projected scenarios for the future of the
organization should be drawn up and each of these cases dealt with seriously,
which would prepare for potential risks. One of the questions that contribute
to understanding the future of the organization: What are the most important
strategic opportunities and challenges that the organization may face? How much
change is needed? What are the aspirations of the foundation?
Addressing challenges
The CEO must also understand the most prominent
problems and challenges faced by the organization during the previous phase,
and work to classify them according to priorities, and then take critical
decisions towards solving and removing them. This stage contributes to the
development of work by a very large percentage, especially since such
challenges constitute an obstacle that prevented the progress of the
institution, and predicted a better future in the era of the current executive
management. This is an important milestone for the company's future, and
through that strong start, the CEO will gain the confidence of the board of
directors in the first place – and that he was indeed the right person in the
right place – as well as motivate the team to work dynamically for the next
phase.
Building an organizational culture
It is one of
the policies that help the CEO to take responsibility for managing the
organization well, defining the general culture and creating the work
environment required towards achieving success. A culture that encompasses an
organization's values, beliefs, and norms – is a key lever for the CEO to
enhance strategy and influence how business is done. One of the ways to
contribute to the construction of this culture is to adopt the desired culture
and take the initiative to achieve it inside and outside the organization – the
example, spending more time with the work teams and transferring those values
in different ways, encouraging the work teams if that desired culture is
implemented. The CEO's job is to defend the organization's culture and constantly
look for opportunities to enhance it, which will shorten more of the times
required towards the organization's progress.
Constructing the organizational
structure
To promote appropriate decisions in the organization,
the organizational structure must be in line with the strategy that has been
adopted. Through the proper distribution of work tasks and providing each of
these units with the required production sources, work flows can be better
managed, and the organizational structure of the organization is an auxiliary
element to achieve goals, not an obstacle to work.
Manage the resources
The work in any organization depends on the presence
of various resources, which are financial resources, human resources, machines
and sites, in addition to primary raw materials. By redistributing these
resources to those who deserve them in the various departments of the
organization, this may hinder progress and the amount of growth to be achieved.
Instead, one of the most important roles of the CEO in the organization is to
spend more resources towards maximizing the volume of revenues and financial flows
to it. Investing different resources in their appropriate locations will
increase the size of the returns by 3-4 times, meaning that every million
dollars invested correctly will be matched by 3.5 million dollars in returns.
In that case, according to these strategies, the CEO will be able to double the
size of the company at record speed and obtain a larger share of the target
market – market share. The position of CEOs and their control over resources
gives them enormous influence.
Making Comments
The CEO must follow the developments of the workflow
and make observations about them explicitly and clearly, with the aim of
improvement and development, and not otherwise. The continuous follow-up of the
work of the institution will achieve a comprehensive understanding of the work
of the institution, self-control of the work of the rest of the assistant
managers, in addition to the ease of making critical decisions that will
develop the business.
Ask for consultancy
Some may think that seeking advice from the first
official in the institution is a factor of weakness and deficiency in his
person, but on the contrary, if seeking advice at the appropriate times for
topics of utmost importance and from qualified people, is a factor of strength
and maturity. Such consultations may shorten more years and redirect the
compass of work towards the right direction away from the factor of trial and
error. Counseling is also one of the motivating factors for the rest of the team
members in the organization, and it creates a new culture that everyone is a
partner in the management of this organization, which entails making more
correct decisions and initiatives from the rest of the assistant managers
towards managing the organization better.
Data availability
Ensure that the board of directors receives supporting
information and statements in a concise and impartial manner, prior to periodic
meetings. The importance of having such facts can make the best decisions,
which in turn reduces the size of the risks ahead. In addition, with the
availability of this information in its integrated form, security will be
achieved in the management of the institution and the application of governance
principles. One of the data that can be available to the members of the Board
of Directors is information such as the financial position of the institution
and the progress achieved. Reports sent to the Board of Directors should also
include the risks and challenges facing the organization at present. In
addition, the information may include other data such as changes in the
customer and supplier side, the evolution of products and services provided by
the organization, product quality, changes in human resources, as well as
progress in operational processes, etc.
Participation in decision-making
The institutional process needs to take more changes
resulting from making the right decision at the right time and from the
authorized persons. Therefore, emphasis should be placed on institutional
decision-making so that each of the assistant executives knows their role in
the decision-making process, and that the role of the CEO is not central in
this aspect. Achieving such institutional processes would reduce the burden on
the CEO and devote him to important roles, in addition to contributing to the
creation of a second generation capable of managing the organization in the
future. If it is determined that the decision made is incorrect, the CEO must
also intervene to address the error quickly, as continuing on the wrong path
will make the organization go back or stand in place at best. As is well known,
the time factor is important in corporate business, as each day of delay is
accompanied by the growth of competitors, thus losing share of the acquired
market. The CEO therefore exerts significant influence on the work of assistant
managers – sometimes, using complementary mechanisms, processes, structures and
standards.
Timely
decision-making
We mentioned earlier the importance of decision-making
and participation in its formulation among the members of the institution, but
the role of the CEO must be to follow up on sensitive decisions that change the
financial situation of the institution, so that intervention is necessary in
the event of delay or hesitation in decision-making by the auxiliary or middle
departments. It should also be emphasized the importance of communication and
the clear delivery of the decision taken to the concerned and stakeholders, so
that the implementation process takes effect as soon as it is taken. After the
decision is taken, it is important to involve everyone in the reasons that led
to taking such decisions and the expected results after that, in order to
achieve the principle of transparency, and to ensure active participation in
institutional work.
Interact with executives
As organizations grow more diversely, it is essential
for business success to have around the CEO a carefully selected group of
dependable executives. Instead of directly supervising every aspect of the
organization's work. The CEO often relies on other leaders to manage the other
units, and then engages with them to gain a high-level understanding of how
things are going. On the other hand, it is the responsibility of the Executive
Director to select assistant managers and diversity in selection, as such criteria
contribute to creating the desired excellence in performance. That's why the
CEO works with other managers and employees at all levels to get work done in
an orderly manner.
Monitoring the performance
The CEO is ultimately responsible for the financial
performance of the institution, which is one of the most important roles for
which the "mission" came and amplified financial returns. Therefore,
the CEO should take note of several financial and non-financial metrics to
track the workflow, such as KPIs or OKR. It is important to reduce these
success indicators to 6-10 indicators in order to facilitate their follow-up on
a daily basis, away from other astronomical data and information. If all data – important and other – are
tracked, it will weaken the CEO's authority and preoccupation with tasks other
than his main duties. Therefore, the CEO, in the event of promotion to the
position or assumes new positions, must strip away from previous tasks, and know
the most important contents of the new responsibility. The CEO must also
respond to events as they happen, from day-to-day issues to full-blown crises
that will prove to have a significant impact on the success of the
organization.
How does the CEO spend his time?
The Harvard Business Review published a remarkable
report on how CEOs spend their time during the day, tracking the performance of
27 CEOs in 3 months, which reached a total annual revenue of USD 13.1 billion.
The results indicate that the actual working hours of these leaders were 10
hours during the day on a regular weekday period, in addition to 4 hours per
day during the weekend, and about 2.5 hours per day during the vacation period.
Thus, the total number of hours CEOs work was an average of 63 hours per week.
Thus, the time factor and its organization is one of the most scarce resources
for executives during their tenure at the helm of the organization. About 75%
of the total CEO time was set in advance and planned, while 25% was
automatically uncalculated. As CEOs appear to have struck a balance between
work and personal time, 31% (8 hours) spent their time at work, 10% on the
commute (2.5 hours), 25% were personal time (6 hours), 29% spent sleeping (7
hours) and 5% spent on vacation (1 hour). As for the distribution of time
during the work period, the study indicated that the work of the CEO is
diverse: 25% of his work is spent on people and building relationships, 25% on
reviews of functional and business units, 16% on organization and culture, and
21% on strategy. Only 3% of their work is spent on professional development,
and only 1% on crisis management. Meanwhile, 4% of their work is on mergers and
acquisitions, while another 4% are spent on operating plans. Thus, it is
possible to catch up with the prior planning and organization carried out by
the CEO to better prevent or reduce surprises at work and management, and all
that has been reduced the size of disasters and surprises at work, all that
indicates good organization and planning for the executive management in the
institution.
As is well known, meetings make up the bulk of the
CEO's day as well. 72% of their working time is spent in meetings, compared to
28% of the time alone. 32% of CEO meetings lasted an hour, 38% longer, and 30%
shorter. Meetings that take up one hour can often be reduced to just 15-30
minutes, which is also a time gain for a CEO who knows the right direction of
work.
Communication with the team is also a necessary task
for the CEO, with 61% of those communications being face-to-face, 24% via
email, and 15% via phone and message. Thus, it is possible to realize the
importance of direct communication and its importance in managing the
organization and directing work teams, although it consumes more time.
Delegation and the generation of confidence in the auxiliary management are
important factors that achieve direct communication with the work team, which
is characterized by time capacity.
The CEO is busy with many different daily meetings,
which drain more time – the scarcity factor – and which should be managed
efficiently. An important feature of the meeting is the number and composition
of attendees. As indicated by the research results, individual meetings are the
most common (accounting for 42% of CEO meetings), followed by meetings with two
to five participants (21%). Although each CEO had meetings with large groups of
50 or more people – such as town halls, off-site driving, or all-company
meetings – these meetings were rare (5% of meetings). Therefore, the CEO is
directly involved in many agendas and makes many decisions that contribute to
better management of meetings.
In conclusion, EXCPR CO. said that the CEO should live
with passion for the goals of the organization, and have a forward-looking
vision towards leading the organization towards greater successes. CEO success
is based on the need to build acceptance from the team, bring in others, and
send the right message. The role of the CEO in the organization is very pivotal
and sensitive, as studies show that 45% of the organization's performance is
affected by the personality of the elected or appointed CEO. Perhaps this
reflection on the person of the chosen CEO will bounce back on the movement of
the company's share price in the financial markets, either positively in the
event of a good reputation, or vice versa. Investors tend to be more
comfortable with new CEOs who are already familiar with the dynamics of the
company's industry, and the specific challenges it may face. Typically,
investors will evaluate the new CEO's track record to create shareholder value.
A CEO's reputation can be reflected in areas such as the ability to increase
market share, reduce costs, or expand into new markets. Although institutional
work is currently prevalent in the management of various institutions,
especially after their significant expansion, the personality of the CEO is one
of the important factors in measuring the prediction of the success of the
organization. Since the role of the CEO in the institution is very sensitive
and that he is primarily responsible for the institution in front of the
members of the board of directors and owners, the financial return to him must
emulate this great role that he plays. Global research suggests that CEOs of
the largest companies in the United States earn USD 24 million in annual
salaries. Despite the heavy responsibility that falls on the CEO and that he is
primarily responsible for everything that is urged in the company to the
members of the Board of Directors and stakeholders, he as one individual has
the same hours of the day as the rest of the individuals. Therefore, it was
necessary to have prior planning and organization in the management of the
work, relying on other factors such as trust in the auxiliary management and
delegation, which contribute to the success of the CEO's work. The importance
of having indicators of success and measurement tools also contributes to
understanding the working performance of the institution in record times, and
relying on modern means and tools to achieve this.
EXCPR CO
Consultancy
& Business Management
Above
Management
P.O.
BOX 21407 – SAFAT 13075 KUWAIT
SHARQ I
AHMED ALJABER STREET I ALMISBA TOWER
I 2ND FLOOR I
OFFICE NO. 2
Tel:
+965 600-EXCPR (600-39277)
Website:
www.excpr.com
Email:
info@excpr.com
No comments:
Post a Comment