When discussing a company, whether it is a startup or a multinational corporation, the role of the Chief Executive Officer, or CEO, will be mentioned. CEOs are known as the captains of a company, and as such, they determine its direction.
The development of a company is heavily dependent on the CEO. Therefore, the CEO must be chosen with great care and deliberation, and only those with the necessary skills can occupy this position.
But do you know what a CEO is and what he or she does? Continue reading to discover more!
Also read: Advantages of the Transformational Leadership Style in Startups
CEO Definition
CEO is the highest position in a business. This position is crucial because they are responsible for all company development decisions.
A CEO’s responsibilities encompass all aspects of the company, including business operations. The CEO is also the public face of the company, as they interact with both the board of directors and the general public.
The CEO’s name is the one known and recognized by the public. They will determine the brand’s success or failure. Therefore, CEOs must maintain a stellar record throughout their careers.
However, the CEO position is also highly dependent on the size of the company. CEOs of big companies will have more responsibilities because they will have to make big decisions that affect the company’s future.
In contrast, the CEO of a small business may play a much larger role due to the fact that they may be directly responsible for a variety of company functions. Aside from making important decisions, they may also have to set operational rules or even the organization’s financial policy.
Additionally, the CEO may be required to assist with employee recruitment in person.
Also read: Successful Young Indonesian Entrepreneurs Starting a Business from Scratch
CEO’s Roles and Responsibilities
CEO’s Roles and Responsibilities (source: Freepik).
The preceding discussion demonstrates that the CEO role is quite expansive. To clarify further, the roles and responsibilities of a CEO are as follows:
- – Creating the company’s vision and mission and ensuring that employees have a clear understanding of the company’s direction
- – Lead the implementation of the company’s strategy
- – Develop positive relationships with the company’s directors in order to advance its growth.
- – Observe the organization’s operations.
- – Look for ways for the company to work with other groups, especially those that have similar goals.
- – Representing the company in external transactions and communicating with the company’s stakeholders, such as governments and other related institutions,
- – Establishing relationships with other CEOs to protect the company’s brand and reputation and enhance its standing. Through this network, they may acquire a substantial amount of leadership skills.
Also read: The Difference Between CEO and Director in A Startup
The Skills That Every CEO Needs
Since the roles and responsibilities of CEOs are extremely demanding, they must possess the necessary skills. These are the skills required of every CEO.
1. Leadership
Leadership is the most important skill for a CEO to possess. We may have learned it from elementary school through college. Every CEO must be able to lead both the team and the board.
Additionally, leadership ability is required to resolve internal conflicts within a company. The manner in which the CEO handles conflicts reflects his or her leadership style. A CEO with excellent leadership skills will earn the trust of his or her employees and thereby forge a strong bond within the organization.
2. Decisive and Tactical
It is not the CEO’s strategic decisions that establish his or her reputation, but rather their decisive and tactical qualities. Being decisive means that the CEO can make decisions quickly and with little information when needed, especially when things aren’t going well.
Tactical implies that the CEO is sufficiently critical during the decision-making process to reach a mature and well-informed conclusion. The CEO must assume all potential risks associated with their decisions.
In a sense, the CEO has no one but themselves to blame if the decision results in a loss for the company.
3. Excellent Communicator
Without effective communication skills, a CEO is nothing more than “the boss” who tells others what to do without considering the team’s circumstances. CEOs must possess strong communication skills in order to foster positive relationships with their teams and other external parties.
Keep in mind that communication skill is more than just conveying the correct information and intent; it also involves understanding the interlocutor’s context. The communication style should vary depending on whether the recipient is an employee or the board of directors.
Also read: Important Positions in Startup Organizational Structure
4. Creative and Innovative
Creativity and innovation are the keys to success in this age of digital disruption. Many businesses fail to grow and stay in business because they can’t change to fit the current environment.
Innovation is necessary for a business to remain competitive in an ever-changing market. To continue innovating, a great CEO must possess exceptional creativity and initiative.
5. Ethical
Without ethics, brilliance would produce arrogance. This is a deal-breaker for the position of CEO, as they must be responsible for both external and internal company relations.
As stated previously, the CEO is the company’s public face. Thus, CEOs must maintain their positive reputation and track record in the eyes of the public.
As the company’s success grows, the CEO will receive more attention and scrutiny. Without proper ethics, the CEO will lose the trust of the general public.
6. Collaborative Skills
Collaboration is significantly more important than competition in the current era. CEOs will always be exposed to a great deal of interaction and must foster collaboration.
For the business to keep growing, people need to take the initiative to work together and cooperate. Without effective collaboration, a business may stagnate or fail. The CEO must also serve as a liaison between various parties, such as the managers and the board of directors.
CEOs must therefore collaborate with others to find effective solutions to their issues. In addition to encouraging collaboration with people outside of the team, the CEO must also encourage collaboration within the team so that any problems can be solved.
7. Transparency
Lastly, a chief executive officer must be transparent. Transparency is necessary to prevent the team and other stakeholders from harboring wild speculations or suspicions. Transparency will demonstrate their honesty.
Transparency is also required to evaluate the CEO’s performance and comprehend the rationale behind each business decision.
Also read: What is Startup Founder, Definition and Roles
Tips to Become A Startup CEO
Tips to Become A Startup CEO (source: freepik)
If you believe you possess the skills listed above, you should consider becoming the CEO of a startup. As you may be aware, an increasing number of young people are becoming CEOs due to the proliferation of startups.
Many Indonesian youths now aspire to work for a startup due to their flexible working conditions, exciting challenges, and respectable salaries.
But if you aspire to be the CEO of a startup, here are some essential tips!
1. Master The Knowledge
A CEO must have a college degree in order to lead a company. They have strong managerial and business skills, at least.
In today’s world, education is more than just going to school. It also includes things like courses and boot camps that aren’t part of school.
2. Manage Your Track Record
In addition to education, your track record is also important. CEOs must maintain an excellent reputation and track record throughout their careers. Your history will reveal much about your work ethic and problem-solving abilities.
Therefore, you must maintain a positive track record with previous employers. Let your work demonstrate your past accomplishments.
You can also be promoted to CEO if your performance at the company is exceptional.
3. Characters are Key
If you lack strong character, outstanding performance alone will not earn you the position of chief executive officer. It would be ideal if you were modest, assertive, and empathetic.
No, this does not require you to be a people-pleaser. But you should strive for daily improvement and have a strong moral compass. Treat others as you would like to be treated yourself.
Being a CEO is not simple. You will encounter numerous obstacles and challenges in the future. However, these obstacles can be overcome with a strong character.
That encompasses the CEO’s definition, roles, responsibilities, and required skills. Are you considering becoming one?
