In the corporate hierarchy, the role of a Chief Executive Officer (CEO) is of paramount importance. Often seen as the captain steering the ship, the CEO’s responsibilities, leadership style, and impact can significantly shape a company’s future.
In this article, we discuss the role of a CEO, major responsibilities, and compare the position with other personnel in terms of role delegation.
The Role of Chief Executive Officer (CEO)
A Chief Executive Officer (CEO) is the highest-ranking executive in an organisation. The CEO is responsible for the overall strategic direction, management, and performance of the company.
CEOs are accountable to the board of directors and shareholders and play a critical role in shaping the company’s vision and ensuring its success. In some companies, CEOs are listed as the managing director.
Major Responsibilities
It’s important to note that the specific responsibilities of a CEO can vary widely depending on the nature of the organisation, its industry, and its size. However, some of the major responsibilities generally associated with the role of a CEO include:
- Setting Strategy and Vision. One of the primary responsibilities of a CEO is to define the company’s long-term strategy and vision. This involves determining the company’s goals, direction, and market positioning.
- Leadership. The CEO is the leader of the executive team and sets the tone for the organisation. They must provide strong, effective leadership, inspire employees, and foster a positive corporate culture.
- Decision-Making. CEOs make critical decisions that impact the company’s operations, finances, and growth. They must analyse data, assess risks, and make informed choices to drive the company forward.
- Communication. Effective communication is essential for a CEO. They must communicate the company’s vision, goals, and strategy to employees, shareholders, and other stakeholders.
- Resource Allocation. CEOs allocate resources, including capital and human resources, to different departments and initiatives based on strategic priorities.
- Financial Management. CEOs oversee the financial health of the company, including budgeting, financial reporting, and ensuring profitability and growth.
- Relationship Management. CEOs build and maintain relationships with key stakeholders, including customers, suppliers, investors, and the board of directors.
- Risk Management. CEOs are responsible for identifying and mitigating risks that could impact the company’s performance and reputation.
Notable Australian CEOs
Australia has seen its fair share of influential and accomplished CEOs who have made significant contributions to their respective industries, such as the following.
Andrew Forrest (Fortescue Metals Group)
Twiggy moved away from stockbroking to run Anaconda Nickel. When that business failed, he analysed Chinese demand for nickel to establish Fortescue and build it into a powerful mining force, but has remained humble with his philanthropy.
Gail Kelly (formerly Westpac)
South African-born Gail Kelly tallied a 17-year career with South African bank NEDCOR before migrating with her family to Australia.
A marketing manager role at CBA became a springboard to a CEO role at St. George Bank, which she helped grow to new heights before leaving to take up the CEO chair at Westpac. Ms. Kelly would later work in the merger of those two banks as the Westpac Group, stepping down in February 2015. Her leadership and focus on diversity and inclusion left a lasting impact.
Michael Ebeid (formerly Telstra)
Michael Ebeid’s career spans over 30 years, first working with IBM and Optus before a COO stint at Two Way Ltd. led to a CEO call-up. He would take up a director role at ABC before signing on as SBS’ CEO/MD in 2011, where he earned CEO Magazine’s CEO of the Year Award in 2017. Ebeid left SBS in 2018.
CEO and Other Chief Roles
Within an organisation, there are several C-level executives, each with specific roles and responsibilities. In comparison to the CEO role, here are the basics on other key C-level positions.
Chief Financial Officer (CFO)
The Chief Financial Officer (CFO) primarily manages the financial aspects of the company, including planning, budgeting, accounting, and reporting. They work alongside the CEO to ensure the company’s finances are secure and accounted for. In some cases, a CEO might pass down their spot to the CFO if they decide to exit the business.
Chief Operating Officer (COO)
The Chief Operating Officer (COO) oversees day-to-day operations, ensuring that business processes and systems run efficiently. They often report directly to the CEO and execute the company’s strategic plans.
Chief Marketing Officer (CMO)
The Chief Marketing Officer (CMO) will oversee marketing and brand management, including advertising, promotions, and market research. They work to drive customer acquisition and brand awareness.
While the CEO defines the company’s overall strategy and vision, they rely on the CMO to develop and execute marketing strategies that align with those goals.
In summary, the CEO’s role is characterised by its comprehensive oversight and strategic leadership, while other C-level executives typically have more specialised responsibilities within their domains. The CEO’s ability to delegate responsibilities effectively to these roles is crucial for the organisation’s success.
DISCLAIMER: This article is for informational purposes only and is not meant as official business advice. AVANTE PARTNERS has no business relationships with any company and CEOs mentioned.