You are probably all familiar with the English and Czech definition of CEO and you know what to formally imagine under this term. But how does it work in practice? Can you say how far the CEO's authority extends in the corporate structure? What should be his or her normal agenda? And which activities should he delegate? That's what we'll look at in today's article.
The importance of the CEO? Bigger than the governing body
If you think of the CEO as the top decision maker of the entire company, who also makes decisions about everything at all times, you are wrong. Right. In the later stages of corporate growth, such a role would even be detrimental. If the CEO is to be most effective for his or her company, it is important that he or she position himself or herself more as a strategist who coordinates company activities, business direction, or the energy and efforts of the team. If you can set up such a functioning, success is guaranteed. The CEO will get a freer hand and the much-needed oversight of the running of the entire company. Instead of dwelling on and dwelling on every detail, he can focus on creating better conditions and environments so that his people, teams and the entire company can more easily achieve strategic and business goals. And insight here certainly doesn't just mean micromanaging the day-to-day agenda.
Management role of the CEO
The CEO's management role encompasses many aspects from strategic planning to team leadership and financial management. It is the CEO who defines the direction of the company and creates an environment in which the team can thrive. His or her ability to lead, motivate and inspire others is key to the company achieving its goals. This is how you know a good CEO.
Delegation as the key to effective functioning
The CEO must be in control. They need to know what everyone in the company is doing and how it works. Have you heard that? Then put it out of your mind. One of the biggest mistakes CEOs can make is to try to do everything themselves. An effective CEO, on the other hand, knows what h i s o r h e r most valuable commodity is. Time. And that's always in short supply. That's why CEOs learn to delegate tasks. It's not just extra capacity that he gains. But it also builds trust in the team and allows everyone to develop their skills.
Founder vs. CEO
It's quite common (and I see it a lot myself) for founders to take on the role of CEO in the early stages of a company's development. Their passion and vision drives the company forward. But as the company grows, they need to realize where the line lies between the role of founder and the role of CEO. While founders can be visionaries who see the long-term direction of the company, the CEO brings the management skills needed to sustain and grow the company.
A CEO who comes in from the outside is not burdened with the entire history of the company, has not painted the first business plan and the first closed contracts in his head. But he can bring a fresh wind to the company. He can often streamline routine processes. Why? Because these are usually not given much thought by the founders. It's important to catch the moment when the founder's role as CEO becomes counterproductive. At some point, every company moves out of its startup phase and reaches a point where it needs to delegate not only individual agendas, but also, for example, the entire management of the company.
A CEO is not just a controlling manager. He gives the company its initial impetus, thinks strategically and inspires his subordinates. Over time, however, he must learn to delegate the work and later the management of the entire company, where he retains a stake in strategic planning. The subsequent functional collaboration between the founder and the CEO is the foundation for a strong and sustainable company.