NEW: Job description of a CEO: What you need to know

Memory Nguwi

THE job description of a chief executive officer (CEO) is a blueprint of what he/she is expected to do in a job.

It includes the ideal candidate’s attributes to perform successfully in such a role. The structure of the job description of CEO has the overall purpose of the role and primary duties.

The primary purpose deals with what the CEO will do in the job.

The third portion of the job description of CEO showcases what the CEO must possess or bring to the job for them to be successful.

This includes knowledge, skills, abilities and other characteristics.

The CEO is ultimately accountable for the success or failure of a company.

The job of a CEO, and what goes into the job description vary by the nature of the industry and the organisation’s size.

The mandate of CEOs of large organisations tends to focus on highly strategic issues.

In contrast, small- to medium-sized organisations include significant operational work.

In this article, I cover what you need to include in the job description of a CEO, and samples of what must go under each section.

Activities versus results
A job description will often be written in two formats: the first will define the duties and responsibilities of the position.

In contrast, the second format will describe the desired outcomes of the position.

Some advocate for a simple job description that does not detail the tasks the CEO has to do, but a broader overarching responsibility.

Such a description allows the CEO to find means to achieve the desired results within the limits of the authority delegated to them.

For example, the CEO will have to do whatever is needed to achieve ends and comply with executive limitations.

The CEO makes all decisions, formulates all policies and gives authorisation for all activities, provided that they can demonstrate to the Board that they are appropriate.

Under this omnibus kind of role description, the CEO must demonstrate that the decisions and actions taken are consistent with a reasonable interpretation of the Board’s ends and executive limitations policies.

The overall purpose of the job
Under this section, you capture the core mandate of the CEO’s job in a summary form.

The job description of CEO should be so clear under this section that no stakeholder is left in doubt as to what the CEO’s mandate is.

The CEO is the highest-ranking executive in a company.

The CEO is responsible for leading the company, overseeing all business units, planning for the future, and ensuring that the company is performing well and achieving its goals.

The CEO’s primary role is to set the company’s strategic direction and make sure that the company’s goals are accomplished.

The CEO is ultimately responsible for crafting the business’ strategy, which covers the financial, business systems, customers and staff working for the business.

Ultimately, the CEO should ensure that the business wins in the marketplace, and make the shareholders happy by bringing an optimal return on shareholder funds.

The overall purpose of CEOs of large organisations is to lead in developing and executing a winning strategy for the organisation.

Usually, the decisions a CEO can make are limited by the laws of the country, and international best practices.

The decisions made at this level are superior to any other decisions.

Only the Board has the power to redirect the decisions of the CEO.

In large organisations, the CEO’s job involves integrating several independent business operations.

This is often the case in roles such as Group CEO.

In small-to-medium organisations, the job description of the CEO includes dealing with the organisation’s strategic direction, but also touches on operational issues.

CEOs are responsible for providing a company with overall guidance on all strategic and operational issues, regardless of the organisation’s size.

This responsibility falls on their shoulders.

To be continued…

*Memory Nguwi is an occupational psychologist, data scientist, speaker, and managing consultant- Industrial Psychology Consultants (Pvt) Ltd, a management and human resources consulting firm. Email: [email protected] or visit our websites https://www.thehumancapitalhub.com / www.ipcconsultants.com