What does a CEO do?
Sets the overall vision and strategy of the company and communicates it to all stakeholders.
Recruits, hires, and retains the very best talent for the company.
Makes sure there is always enough cash in the bank.
I read the above quote in an email earlier today. Fred Wilson is a New York Venture Capitalist. Early in his career, Wilson was working on a CEO selection project for a company. He asked an unnamed senior Venture Capitalist what a CEO actually does and was given the above three points.
The theory behind these points was that everything outside of these areas should be delegated to the team. Wilson goes further to say that whilst many CEO’s do more than these three things, if a CEO cannot do these things well, they will not be a good CEO.
In my recent article, Lotto, no thanks, 10 Business Strategies to Grow Wealth, I told the story of two business owners that ran into business and financial difficulties because they were working ‘in the business’ and not ‘on the business’. The focus on Strategy, Recruiting and Cash Management had been lost.
To me, these three areas succinctly sum-up the key skills of a CEO.
What do you think?