Sharing powers between the business owner and the company’s CEO in a constructive and sensible way is of vital importance. It is essential for listed companies that operate internationally in multiple jurisdictions. Let’s try to dig deeper into the question and discover the differences between the 2 to determine whether it is the CEO or the business owner who should be in charge of the company’s management and/or business operations.
The article below examines essential aspects of corporate governance and the sharing of authority between the CEO and the business owner that can potentially boost business development and profit growth.
Business owners and their responsibilities to protect and grow the business
Although not a college student, business ownership remains a full-time career and lifelong calling. A business owner has established rights and has direct obligations and job responsibilities. Setting the company’s goals and shaping its common ideology is a paramount business owner’s duty.
A business is created to make money, which is natural and logical. Another aspect that is often ignored is that all major companies that undercut the competition and have become firmly established in the market boast individual goals let alone concepts.
Internationally recognized as MacDonald’s founder, Raymond Kroc dreamed of selling hamburgers for 15 cents so that every consumer could buy one. As a true lover of aesthetics and comfort, Apple’s founder longed to provide users with the most efficient computer software, equipment and technologies. The Netflix CEO and Chairman worked to make it possible for every movie fan to find and watch their favorite movies.
The above list of examples could go on, but the truth remains unchanged. A growing company has much deeper and more comprehensive goals than making a profit.
In order for a business to start and not perish in the near future, a business owner must be good at sharing responsibilities. Business development and staying ahead of the competition will be challenging, if not impossible otherwise.
The main goals a business owner must pursue are listed below:
- To shape innovative ideas, come up with completely new goals and keep them at the top of the hierarchy pyramid and at the same time promote the said ideas and goals among the company’s employees.
- Monitoring of marketing strategies used by the company. It is the business owner’s job to monitor that a product remains best selling and in demand.
- Improve existing unique trade offers and come up with new UTOs. With state-of-the-art technological advancements and market changes, it is of the utmost importance.
- Securing and monitoring the turnover of financial and material assets in a rational and efficient manner.
- Planning the company’s activities and managing them together with the company’s managing director as well as changing the company’s development goals to keep in line with the current market situation.
In order to increase the company’s profits and remain its full boss, the company or business owner must effectively exercise the above functions. It would be ideal if a business owner appointed himself the company’s CEO or closely monitored the latter’s activities along with the company’s operations. This is crucial so that the business does not disappear into nothing in the future.
Company CEO aka general manager and their responsibilities in the company
A general manager is typically treated as the sole management body of the company. The CEO is considered to hold the top executive and management position in the company. The CEO is a manager with direct responsibility for the company and its employees.
But how effective the CEO is depends on how clearly their responsibilities are defined by the business owner. In the UK, the appointment of a new CEO of the company is a special procedure that comes with its own terms and requirements. Difficulties can arise where the company or business owner is not very aware of this and fails to properly assign responsibilities within the company.
In a thriving company, the general manager or CEO has well-defined competencies:
- Execution of strategic decisions made by the business owner. The CEO must adjust or change them as necessary if said adjustments or changes are approved by the business owner.
- Coordination and monitoring of activities and operations in the company’s departments.
- Ongoing monitoring of the company’s operation and activities.
- Prevention and resolution of any commercial or business issues the company may face where department managers fail to do so.
- Monitoring the company’s profitability and preparing corresponding reports, developing and expanding the company and business activities to keep the company and its business high performing.
Business owners should remember that they are the ones responsible for setting the company’s rules and standards. The CEO acts within the established boundaries and monitors approved procedures and ensures that the desired results are achieved.