What does CEO mean?
CEO means Chief Executive Officer. It is the highest position in a particular organization. For many companies, their CEOs represent the face of the entire organization. Over the years, the position of CEO is associated with leadership, power, prestige, and big financial payoffs.
Many of today’s companies take advantage of the marketing power of CEOs. People like Bill Gates, Steve Jobs, and Warren Buffet are popularly linked to their respective companies. They have become ambassadors and promoters of their company brands.
In typical organizations, CEOs are in-charge with setting goals and business direction. They are expected to be leaders and are tasked to make the vital decisions for a particular organization. Commonly, CEOs select his/her senior management team to deal with the different aspects and branches of a particular business. Business Plans are often formulated with this senior management team, but CEOs still have the final word.
In terms of the organization’s finances, CEOs are tasked to make decisions on investments and budgets. They are to promote operational efficiency while maintaining or limiting costs and venturing into new projects. CEOs decide if new investments are necessary and how much budget can be allocated for them. They also decide on which part of the organization’s existing business units need to cut back on expenses, and which units to expand.
And as the face of the entire organization, CEOs also play a major role in promoting a team culture within the organization. They also deal with handling media relations in terms of promoting the organization and in meeting with important clients and possible new investors.
Overall, CEOs have the whole organization to run and to take care of. That’s why it is most important for them to have vast educational expertise and business experience to deal with the complexities of running an entire organization.