Roles of the executives

Executives are the top management of an organization, responsible for setting the overall direction of the company and making major decisions. They are responsible for overseeing the management of the business and ensuring that the organization is well positioned to achieve its goals. They are typically responsible for creating and implementing the organization’s strategic plans, developing the operational plans and budgets, and developing the overall organizational structure. They are also responsible for making sure that the organization is compliant with legal and regulatory requirements. In addition, they are responsible for setting corporate policies, providing leadership and direction to other managers, and for implementing the company’s vision.

Example of roles of the executives

• Chief Executive Officer (CEO): The CEO is the highest-ranking executive in an organization and is responsible for setting the overall direction of the company. They are responsible for developing and implementing the organization’s long-term strategies, setting and achieving financial and operational goals, and ensuring the organization is compliant with legal and regulatory requirements.
• Chief Financial Officer (CFO): The CFO is responsible for overseeing the financial operations of the organization, including budgeting, financial reporting, and financial planning. They are also responsible for ensuring the organization is compliant with financial regulations, identifying and mitigating financial risks, and developing strategies for improving the organization's financial performance.
• Chief Operating Officer (COO): The COO is responsible for overseeing the day-to-day operations of the organization. They are responsible for coordinating and managing the organization’s resources, developing and implementing operational plans, and ensuring the organization is meeting its operational goals.
• Chief Marketing Officer (CMO): The CMO is responsible for developing and executing the organization’s marketing strategies. They are responsible for creating and executing campaigns to promote the organization’s products and services, developing and executing digital marketing strategies, and overseeing the organization’s branding and public relations efforts.
• Chief Technology Officer (CTO): The CTO is responsible for overseeing the organization’s technology strategy and operations. They are responsible for developing and implementing the organization’s IT strategies, managing the organization’s IT infrastructure, and ensuring the organization is compliant with data security regulations.

Best practices of roles of the executives

1. Strategic Leadership: Executives are responsible for setting the overall direction of the company and making major decisions. They are responsible for developing the organization’s strategic plans, creating and implementing the operational plans and budgets, and developing the overall organizational structure.
2. Financial Management: Executives are responsible for managing the financial resources of the organization, including allocating resources, setting up financial systems, monitoring and controlling expenditures, and assessing financial performance.
3. Risk Management: Executives are responsible for identifying, evaluating, and managing risks associated with the organization’s operations. This includes developing and implementing risk management policies and procedures, monitoring and evaluating risks, and ensuring compliance with applicable laws and regulations.
4. Resource Allocation: Executives are responsible for allocating resources to ensure that the organization is adequately staffed, equipped, and supplied. This includes recruiting and hiring personnel, purchasing supplies and equipment, and managing the organization’s budget.
5. Change Management: Executives are responsible for leading and managing organizational change, including developing and implementing change initiatives, communicating and implementing change strategies, and assessing the effectiveness of change.
6. Communication: Executives are responsible for developing and implementing effective communication plans and strategies, ensuring that messages are communicated in a timely and clear manner, and overseeing the organization’s external communications.
7. People Management: Executives are responsible for developing and maintaining a positive and productive work environment by providing guidance and direction to other managers and employees, resolving conflicts, coaching and mentoring, and ensuring that the organization’s values and objectives are met.

When to use roles of the executives

Some of the key roles of executives include:

• Developing and implementing the organization's strategic plans: Executives are responsible for developing a strategic plan that outlines the organization’s goals and objectives, and for implementing it to ensure that the organization is on track to meet its goals.
• Developing operational plans and budgets: Executives are responsible for developing operational plans that outline the day-to-day operations of the organization, as well as budgets that ensure that the organization is operating within its financial constraints.
• Creating corporate policies and procedures: Executives are responsible for creating corporate policies and procedures that ensure the organization is run in a consistent and efficient manner.
• Providing leadership and direction to other managers: Executives are responsible for providing leadership and direction to other managers and employees, and for ensuring that the organization is on track to meet its goals.
• Ensuring compliance with legal and regulatory requirements: Executives are responsible for ensuring that the organization is compliant with all applicable legal and regulatory requirements.
• Implementing the company's vision: Executives are responsible for ensuring that the organization is on track to achieve its long-term goals, and for implementing the company’s vision.

Types of roles of the executives

Executives have a variety of roles and responsibilities that help ensure the overall success of an organization. These roles can include:

• Developing and implementing the organization’s long-term strategy and vision. This includes setting corporate policies, developing operational plans and budgets, and creating organizational structures.
• Making major decisions and overseeing the management of the business. This includes making sure that the organization is compliant with legal and regulatory requirements and that the organization is well positioned to achieve its goals.
• Providing leadership and direction to other managers. This includes setting expectations, providing feedback and guidance, and ensuring that the organization’s vision is achieved.
• Establishing relationships with customers, partners, and other stakeholders. This includes building trust and credibility with these groups and helping to ensure that the organization is meeting their needs.
• Developing and managing the organization’s financial resources. This includes managing cash flow, budgets, and investments.
• Representing the organization to the public. This includes attending events and speaking at conferences, as well as conducting media interviews and developing external relationships.

Limitations of roles of the executives

Executives play a critical role in the success of an organization, however, there are certain limitations to their roles. These limitations include:

• Limited Authority: Executives are often restricted in their decision-making abilities as they may need to seek approval from higher-level managers or shareholders before making major decisions, which can delay the implementation of plans.
• Lack of Knowledge: Executives may not have a detailed understanding of each area of the business, and as such, their decisions may be based on limited information or assumptions.
• Unclear Goals: Executives may not have a clear understanding of the organization’s goals and objectives, which can lead to confusion and delays in achieving results.
• Limited Resources: Executives may not have the resources or personnel to carry out their plans, which can lead to a failure to meet goals.
• Political Environment: Executives may be subject to politics within the organization, which can limit their ability to make the best decisions for the organization.
• Short-Term Focus: Executives may be more focused on short-term results rather than long-term goals, which can lead to a lack of focus on the overall success of the organization.

Roles of the executives — recommended articles

Top management — Small business management — Top-level management — Project management governance — Program management office — Corporate governance theory — Project management organization — Project steering committee — Stakeholders influence

References

• Javidan, M., & Dastmalchian, A. (1993). Assessing senior executives: The impact of context on their roles. The Journal of Applied Behavioral Science, 29(3), 328-342.