The Position & Role of the CEO in a Company

The Position & Role of the CEO in a Company

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You must have heard the term “CEO” before, right?

Especially if you are quite active in socializing on professional social media such as LinkedIn, you will often come across several profiles of individuals who have CEO positions in the companies where they work.

Whether it’s for companies whose names are already quite large in Indonesia, as well as new companies that have sprung up recently.

The CEO position is often synonymous with the highest position in the company.

So, what exactly is the function of the CEO position?

Is it different from the position of director and other high positions?

Come on, let’s look at the following brief review.

What is a CEO?

CEO stands for Chief Executive Officer .

This position is the highest position in the company’s organizational structure, and is usually found in almost all startup companies .

Usually, a startup company founder also holds the role of CEO in the company.

However, if a company has a group of shareholders, often the position of CEO is determined by the results of the agreement of the shareholders.

The Chief Executive Officer of a company is tasked with leading & directing the company, so that it is in line with the vision & mission that has been determined by the company owners/shareholders.

The CEO has full control over the company’s business activities, including determining the top-level strategies that need to be carried out to develop the company.

From his duties, the position of CEO actually has similarities to the position of the President Director and the position of the President Director.

Qualified CEO Character

Then, can everyone become a CEO?

Well , because the CEO’s role is very crucial in a company, the company owners/shareholders must be really observant in choosing the CEO that fits their vision and mission.

Here are some of the characteristics of a CEO who is usually quite reliable in managing a company:

Able to work together ( teamwork )

A good CEO is certainly a good team player too.

The reason is, in leading a company, the CEO must be able to build solid teams , proficient in their fields, and able to communicate with each other.

A CEO must also be able to be a good listener, and also know who people need to talk to if a problem occurs.

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Quick to adapt ( adaptability )

The mindset of a good CEO should not be rigid, and be able to quickly change according to circumstances.

Not only that, the CEO must also be able to learn from past events, and make policies that can mitigate the occurrence of undesirable things.

Always reliable ( reliability )

A good leader is a leader who can always be relied on.

For example, if there is a problem with the company, a CEO must be able to show calm and maturity; not easy to panic & not easy to lose control of his emotions.

A CEO must be able to estimate the location of the source of the problem, what things can be prepared to overcome it, and who needs to be contacted to immediately resolve the problem.

That way, the CEO will always get the full trust of the employees, and they will always be ready to accept & carry out all the directions given properly.

Able to see far ahead ( foresight )

Just as a business owner is able to see future business trends , a CEO should also be able to predict the business situation in the future.

At least for the next 1-2 years.

For example, when the company plans to open a new branch outside the city or abroad, will this have a good impact on the company?

Or even have a bad impact?

A CEO needs to have the ability to understand, and read insights about the business situation in the future.

This is useful so that companies can take advantage of opportunities and also mitigate business risks.

Have a good character ( decency )

In addition to the characters above, a CEO should also have a good character.

For example, by not taking actions that have the potential to violate the law, or issuing policies that complicate the conditions and welfare of employees.

A good CEO will always prioritize the human factor first, before making decisions related to the development of the company.

CEO Can Be Changed?

Then, can a CEO, whose role is very important in a company, be replaced?

The answer is yes.

A CEO is someone who is chosen by the owners/shareholders of the company to run the company according to their vision & mission.

If the owners feel that there are other prospective individuals who are more experienced, or whose leadership style is more in line with the business concept, then they may appoint a new CEO to replace the role of the previous CEO.

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Usually, if a company’s growth slows down, shareholders will appoint a new CEO to improve conditions in the company.

However, the change could also occur because the old CEO decided to resign for other reasons.

For example, recently PT Esteh Indonesia Makmur also changed its CEO.

Artist and young entrepreneur Nagita Slavina was appointed CEO of Esteh Indonesia last July, replacing Haidhar Wurjanto. Haidhar himself is the founder of Esteh Indonesia.

The two CEO figures are both quite successful entrepreneurs at a young age.

Haidhar has other food & beverage businesses such as Momo Milk, Raindear Coffee & Kitchen, Cakekekinian, Forestthree Coffee, and Esteh Indonesia.

Meanwhile, Nagita Slavina is also experienced in managing the various businesses she owns.

Examples include RANS Entertainment, Frame Ritz and RA Picture production houses, RANS Living, Nagita Slavina Cosmetics, and many others.

The ability to manage various businesses and companies, as well as their business experience so far, make these two individuals who are suitable for holding the CEO position.

Conclusion

Like a captain who leads a ship, a CEO has an important role in a company.

Many things and high-level strategic decisions a CEO needs to make. Therefore, it must be someone who is truly experienced who is able to carry out these tasks.

The CEO must also be able to be a bridge between the daily operational activities of the company and the owners/shareholders of the company.

CEO turnover is not always due to improve the company’s unstable condition. However, it could be because there are other changes that need to be made within the company.

Whoever is chosen, whether from the business community or celebrities, as long as that person has the skills & knowledge needed, and is in accordance with the vision & mission of the shareholders, then that person is suitable to be a CEO.


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Economics Student of Universitas Gadjah Mada, Indonesia.