As CEOs, they maximise shareholder value and are expected to make a company successful. As CEOs, they have certain responsibities. Let us spell out some areas of their responsibilities.

Direction setting: They steer the ship of business in the direction of achieving the goals set. A CEO articulates the goals and vision of the company. The growth areas are identified. It may be necessary to diversify or to acquire some businesses. It should be followed strategically. Long term goals are broken down into short-term plans. All this is done strategically to make most of the resources available.

Alignment of organisation to Objectives and Strategies: As CEOs, they should find a fit between the organisation and its objectives. There could be impediments here which must be overcome. There are occasions where organisation’s culture does require change. At the same time, the organisation design is reset. Some new verticals may be created, whereas some old verticals are hived off. There are shocks to the entrenched structures and mindset. It may be necessary to hire fresh talent. The existing manpower must be reskilled.

Identification of Leaders: A CEO draws a plan but it is executed by the leaders in the organisation — the senior management and middle management. A CEO may have preference for people with certain backgrounds. However, to execute the new plan, there must be a mix of the new and old manpower. There has to be a balance between internal and external staff.

Board Engagement: As CEOs, they have to engage with the Board of Directors (BoD). The Board has members from diverse backgrounds. There are fixed number of Board meetings. The composition of the Board matters. The Board members have issues and questions. A CEO must respond to them. There could be conflict-like situations. These must be handled with maturity. Board meetings have discussions and deliberations. CEOs have to take the Board members along. They have their independent views.

Stakeholder Connection: There are various stakeholders — shareholders, clients or customers, employees, regulators, government, pressure groups. CEOs have to connect with these effectively. As CEOs they must not be obsessed with the day-to-day functioning of the company, but must spare time for the stakeholders. After formulating the strategy, the nitty-gritty of implementation is left to the leaders. CEOs have to deal with the Board and the stakeholders. CEOs must learn the art of delegation to become the true ambassadors of the company.