Sunday, November 10, 2013

Duties of a CEO

As probably everybody knows, the term CEO means Chief Executive Officer. One of the C-level positions in the senior management team of a company.



But what actually is the main function of a CEO? From my point of view there are these three main duties:



I. Develop  a common Vision
II. Create and embody the company Culture.
III. Intercept Entropy.


The CEO must develop a concept for the next five years of the company about what future could look like.
Imagine the whole company seated in a bus driving during the night down the twisty highway. CEO knows the target destination and describe the highway to all in the bus. The next several hundred meters of the road are visible in the headlights of the bus and does not have to be described by CEO. That is the vision.

The second major duty of the CEO’s job is the company culture. The way thing are done from a behavioral standpoint. The culture includes also the core values of the company. The way everyone in the team acts comes from the culture. The CEO is responsible for living all of it.

The third and final duty of the CEO’s job is to deal with entropy. All things in nature tend to migrate from order to disorder. The CEO has to be aware of this normal movement to disorder and to determine the appropriate action to take.The CEO needs to make appropriate corrections.

So, it isn't so complicated — just three things to do!:-)