At first glance, the question seems straightforward, but in reality, the role of a CEO evolves with the company’s stage and the individual leading it. What exactly should a CEO do? The answer isn't as simple as job titles like 'Business Developer' or 'Relationship Manager'.
Many CEOs approach me seeking clarity on their role. Unlike other positions, the CEO's responsibilities are multifaceted, encompassing management of expectations from above, below, and within the company—a complex balance that is both challenging and crucial.
Working on the Company, Not in It
I often tell my teams, "A CEO does only three things: sets the overall vision and strategy of the company, communicates it to all stakeholders, recruits and retains the best talent, and ensures sufficient cash flow."
1. Set the Vision
A strong vision not only defines a company's direction but also inspires and motivates the team. What exactly constitutes a vision? Definitions vary widely, but I propose a practical approach: "A vision is an inspiring story about the future, grounded in a logical extrapolation of the present."
This definition emphasizes understanding current trends to effectively shape future goals. It also underscores the CEO's role in distilling complex realities into a compelling narrative that guides the company forward.
Lesson Learned: Over my career, I’ve found that a clear and inclusive vision is crucial. It's not just about stating goals but also about ensuring every team member understands their role in achieving them. This clarity fosters alignment and empowers individuals to contribute meaningfully.
2. Build the Team
As CEO, your primary task is to assemble and nurture a high-performing leadership team. This involves recruiting individuals who excel beyond your own capabilities and providing them with the support and coaching they need to succeed.
Additionally, part of building a dream team involves making tough decisions, including letting go of underperforming team members and cultivating relationships beyond the core team, such as advisors and partners.
Lesson Learned: Building a strong team isn’t just about hiring skills; it’s about fostering a culture where diversity of thought thrives. Embracing different perspectives has been instrumental in overcoming challenges and driving innovation within our organization.
3. Manage Cash Flow
Understanding and managing cash flow is critical for any CEO. While fundraising is on the way, closing significant sales and partnerships that drive revenue growth is equally vital for me. Cost-cutting, though less glamorous, remains a necessary part of financial stewardship.
Lesson Learned: I’ve come to appreciate that financial prudence isn’t just about budgeting—it’s about agility. Being proactive in managing cash flow has allowed us to weather uncertainties and capitalize on unexpected opportunities.
Beyond the Basics
Yet, the CEO's role extends beyond these pillars. In the dynamic environment of managing a company, CEOs often face daunting challenges that require strategic prioritization and effective delegation. Empowering team members to grow and excel is personally fulfilling but also essential for sustainable growth.
Lesson Learned: Delegation isn’t just about offloading tasks; it’s about developing talent. Trusting others with responsibilities has not only lightened my workload but has also empowered individuals to take ownership and thrive.
In Conclusion
Being a CEO is intense, often overwhelming, and occasionally feels impossible. However, amidst the chaos, focusing on vision, people, and cash flow provides a reliable framework for navigating challenges.
Is your company's vision clear and compelling? Are you surrounded by the right people? Do they have the resources needed to succeed? If not, it's time to roll up your sleeves and get to work.
Great article! We are running along with you.