“CEO” may be the most misused title in business… especially small businesses.
I get it; it’s a status thing.
“CEO” sounds important, and there’s a tendency to use that title so that we seem bigger to the people we want to do business with. Or maybe to impress our friends.
But, by definition, you cannot be CEO of a company of 1. Or 2. Or even 20.
CEO stands for Chief Executive Officer… Let’s break it down.
An “officer” of a company is someone with authority to make decisions and run the day-to-day operations of the business.
Unlike workers whose jobs involve performing specific tasks (like “Mechanic” or “Copywriter”), an officer’s job is about an area of responsibility.
As an example, when I graduated from the military academy, I was commissioned as an Officer in the US Army and eventually assigned my own platoon.
The 30+ men and women in my platoon all had specific roles and jobs. But as the officer in charge, I was ultimately responsible for accomplishing the mission.
It’s the same in business- company officers are decision makers with areas of responsibility.
Then there’s “Executive”, as in “executive level responsibility”.
Large companies have different layers of employees, from the lowest level workers, to senior workers, to first-line supervisors, higher-level supervisors, then finally officers and management.
Working up the chain from junior management, middle management, and senior management, you eventually get to the executive level- the senior leadership of an organization.
Executives have specific areas of responsibility which vary between businesses and industries.
Tech companies have a Chief Technology Officer. Investment firms have a Chief Investment Officer. Marketing firms have a Chief Marketing Officer.
Most companies will have a Chief Financial Officer, typically a Chief Operating Officer, and perhaps several others.
All of these are executive positions.
Executives are big picture thinkers and high-level decision-makers. They build teams, set goals, establish policies, allocate resources, and monitor progress.
They are NOT task rabbits. They don’t stay up half the night tinkering with a website plug-in.
The Board of Directors sets the strategic vision for the company, and it’s the responsibility of the executive team to execute that vision and make it a reality.
Last there’s “Chief”, as in “chief among many”. Ergo, in order to be CEO there must be other executive officers, and the CEO is chief of them.
I’ve founded a lot of different companies, and my current responsibilities with each of them vary.
At the agriculture company I started in 2013, I’m the CEO, in the actual sense I’ve described. (I’m also the Chairman of the Board of Directors, but we’ll save that for another time.)
As I write this letter, we currently have around 400 employees.
Many are low-level laborers. Others are specialist workers.
Then there are the supervisors who ensure the workers are doing their jobs properly, and then the higher-level foremen who supervise the supervisors.
Above the foremen is the first layer of management: people who have responsibility to carry out the plans and policies established by senior leadership.
These managers are supervised by senior operations officers, as well as a cadre of PhD botanists and technical experts.
Those senior managers and experts report to the Chief Operating Officer, who has responsibility over all the company’s agricultural operations.
We have a similar structure in admin and finance, with payroll clerks and bookkeepers reporting to accounts payable and accounts receivable managers, who, along with controllers and internal audit report to the Chief Financial Officer.
We’re now building out a logistics-heavy distribution division that will be headed by another senior executive.
So at a minimum we have a CFO and COO.
My responsibility as CEO is to lead the executive team in building and executing the plan to achieve the company’s vision and objectives.
This involves LOTS of communication, culture-building, high-level decision making, and resource allocation.
And while I like to get my hands dirty and be in the fields with the workers, I’m not picking blueberries on a regular basis. My role is elsewhere.
Conversely, the bank I started earlier this year is still in startup mode.
So as the founder, I wear multiple hats- both strategic and tactical.
One day I’m on the phone with a vendor or dealing with a customer issue, the next I’m designing the long-term plan for the business.
Devoid of other executives or a role limited to high-level strategy, I can scarcely call myself the bank’s “CEO”.
Sovereign Man is a mature business with over 20 staff; but even there I wear multiple hats.
I write an email every morning, which basically makes me a staff writer.
But at the same time I approve ALL the content that goes out, which also makes me Editor-in-Chief.
I also direct the marketing efforts as well as write the copy.
So that’s four jobs in addition to being the boss.
That’s how you can be sure that CEO isn’t the right job title:
- You’ve taken on multiple roles in the business
- You’re not spending the vast majority of your time on big picture strategy
- Your company doesn’t have any other “E’s” and “O’s”
If any one of the above applies, you’re not the CEO. Simple.
Don’t try to act (or lead others to believe) that you or your business are bigger than they really are. Leave the ego and status anxiety behind.
Also, avoid deliberately cute titles like “Chief Ninja” or “Head of Badassary”.
Yes, you’re very funny. But this is business, not middle school.
Instead, use “General Manager”. Or if you’re structured as a corporation, “Managing Director” is an excellent choice.
Feel free to add “Founder” or “Co-Founder” if you started the business.
Those are impressive enough. And honest.