what are the functions of the Chief Executive Office

In the world of business and corporate management, becoming the CEO of a company is the dream of the most capable leaders. Being CEO represents having reached the pinnacle of career success. I explain what it is to be Chief Executive Officer and the keys to becoming one of them.

It may interest you: the training of CEOs MBA in Digital Business


What is a CEO in a company?

As I mentioned, people with the soul of a leader inevitably aspire to be CEO within a company. But not all that glitters is gold, and if it is true that being the Chief Executive Officer of a company carries great power, it is also true that it carries great responsibility and great stress. And it is that, in a simplified way, we can say that the great role of the CEO consists in simultaneously satisfying the needs of shareholders, employees, clients, collaborators and legal and social entities. Not an easy subject.

The role of digital leaders – Discussion table #DigitalLeaders

The functions and responsibilities of a CEO vary according to the characteristics of the company he represents depending on elements such as the organizational structure and the size of the company . In smaller companies, the CEO takes on practical roles in certain departments of the company based on his experience and more technical skills.

In contrast, in larger companies, the CEO generally only deals with the high-level corporate strategy and the most relevant decisions of the company, delegating and controlling the rest of the tasks to the C-Suite level managers as CFO , CMO, COO and CIO.

If you do not know the meaning of these acronyms, do not worry, consult our article CFO, CIO, COO and other acronyms of high positions .

Roles of a CEO: the keys to becoming an Executive Director

These are the main functions that every CEO should have and that I will further develop in depth:

  1. Great business and innovative vision
  2. Analysis capacity for decision making
  3. Leadership and management of large teams
  4. Talent recruitment
  5. Bargaining power
  6. Motivational ability


Setting the long-term orientation of the company is one of the most important tasks of a CEO. We refer to establishing the vision , the purpose of the company, that is, its reason for being, and the values that will delimit the red lines that should never be overstepped.

As part of the company’s orientation, it is the direct responsibility of the CEO to build a healthy and appropriate business culture, establishing insurmountable values , and in turn assumed naturally by practically the entire organization.

In addition to setting the orientation, it is also the direct responsibility of the CEO to design and define the strategy at its two main levels, that is, the corporate strategy that answers the question of “Where will the company compete?”, And the competitive strategy that answers the “How will you compete?” question.

A good CEO is able to balance and keep the company focused, dedicating 70% of its resources in its Core Business, and being able to encourage and promote its directors to take the remaining 30% to areas of innovation.


On the one hand, we have that a company must not grow faster than its ability to find the right people for the right jobs. And on the other hand we have the pressure exerted by the shareholders towards the CEO for growth. With these two elements we come to the conclusion that it is indisputable that a main function of the CEO is to build the best of the management teams at the C-Suite level .

It is therefore the function of the CEO to choose his managers, as well as their training and sufficient freedom of action so that they can carry out the necessary tasks in order to achieve the vision. The CEO has an obligation to delegate, but must do so before the best management team.


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The resources of an organization such as capital, people or tools are limited , however, they are essential for the proper functioning of the different departments. A balance of resources towards one or the other department clearly marks the priorities of the organization.

It is the direct function and responsibility of the CEO of an organization to balance resources between departments to achieve the desired purpose. It is also their function to request more financing from the shareholders, if necessary, through the board of directors to increase the available resources.


The CEO of any organization is elected by the board of directors of a company, who are the representation of the shareholders, that is, the owners of the company. The CEO is also usually part of said board of directors and, on numerous occasions, holds the presidency of it .

These facts make it the responsibility of the CEO to create value for shareholders, but it is also his responsibility to create value for workers and for the society in general that surrounds the organization. This makes the CEO a true tightrope walker in creating value .

This is not easy at all, because in many cases there are opposing forces in terms of objectives between shareholders, staff and society. Shareholders want growth to increase their profits. In many cases, this growth implies greater pressure on workers for productivity and efficiency. And furthermore, growth implies a higher production that in many cases translates into an increase in pollution.

To these four main functions of the CEO we can add others such as the ability to motivate the staff with a focus on objectives, the development of activities at the level of public relations with markets or public administrations, the management of higher level human resources, the control of financial and fiscal management, as well as the detection of trends that may pose an opportunity or threat to the organization.

What to study to be an Executive Director?

As we have mentioned, there are people who are born with the soul of a leader and who stand out in all areas of their lives due to their strategic planning and management nature.

To become CEO of a company you need proven experience in leadership and management of people, resources or even markets. The business world is a very competitive sector where added value and the competitive difference between people is very decisive.

That is why training is essential to highlight and validate knowledge that not all profiles acquire. Having an MBA opens many doors, due to the reputation of this degree, the associated networking and the quality of the training.

This training in Business Management and Administration is essential to start working in lower positions of team and organization management. Without a doubt, if your goal is to become CEO, this is the training that will take you professionally to the top of any organization.

The success of our students endorses the MBA that we offer from the school and in which each call we work so that obtaining it takes you to the labor market not only because of its reputation but also because of the content and work that you are going to do.

Who said they wanted to be the CEO of an organization? Those of you who, despite everything we have seen here about the functions and tasks of a CEO, remain convinced, deserve all my admiration and respect, and I sincerely wish you the best of luck. I encourage you to share with your community and thus be able to count on the leaders that as workers and society we need.


by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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