Delegation is absolutely necessary for any CEO to be successful, but there are a number of core responsibilities that shouldn’t be be passed on to another. Like a sea captain is fully in charge of the ship's most important functions, as CEO, you own these responsibilities.
1) Set the Course – “A ship in the harbor is safe…but that’s not what ships were made for.” – J. A. Shedd. One of the most important roles of any CEO is to set the direction for their organization, as well as drive the organization forward to achieve its mission. Developing the right strategies for the business sets the stage for everything else. While you should certainly involve your key leaders in the development and refinement of company strategy, you must be the one to set guidelines and objectives, formulate and drive the process, and separate out individual opinions from the elements of strategy that will make sense for the overall business. Setting the course and successfully implementing the plan is your most important job.
2) Hand-Select Your Officers – You know that having the right people on your executive team is critical to the success and wellbeing of both yourself and your company. Building a senior leadership team is your job and should not be delegated. The team must be structured correctly with appropriately designed roles and responsibilities, and the people in those roles must have the competencies and capabilities required. Individuals must align with company culture and, most importantly, be able to work effectively with other members of the team.
Your selection process must be rigorous not just based on personality and “good feelings.” Today, the most successful companies are using objective tools and interviewing techniques to dig beyond the surface persona and uncover more about a candidate, including leadership style, company culture requirements, reactions under pressure, and abilities to develop and mentor. As CEO, this probing approach is up to you. When you hire a team of people who are each excellent in their role, work together well, and have the ability to both be successful in their area of expertise, as well as step up and add value to the overall company success, you have done your job.
3) Manage Your Cargo Wisely - There is a line across the the hull a boat called the Plimsoll Line which “indicates the maximum depth a vessel can be safely immersed when loaded with cargo.” (National Ocean Service). The depth varies with dimensions, cargo, time of year, and the water densities. The success of the voyage depends on paying close attention to the Plimsoll Line and all of the external and internal factors that impact the ship...an excellent analogy for the tricky business of managing your company's finite resources.
You are operating an organization that has complexities, opportunities and limitations, and your surroundings are ever changing. As CEO, you must take all of this into account and allocate resources skillfully. Without your careful attention, your ship could go down or, reversely, miss out on maximizing its potential. You have the final say on critical decisions with respect to capital, people, and other assets in the business. And to stay on track, you need very focused objectives that come from your strategic plan. The key is to hammer the list of potential goals and objectives down to the most critically important, and make sure that the key resources are allocated to help you reach these goals. Given the many choices and tradeoffs that are a reality in all businesses (and all the various functions clamoring for more resources), it is your job to make sure the resources are allocated correctly.
4) Steer the Boat through Shifting Winds – “The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” – William Arthur Ward. It is rare that everything goes to plan and it is your job to make adjustments when needed to stay on course. External occurrences, as well as unforeseen internal changes, impact business plans. Course corrections must be made and that is the job of the CEO. As we learn that certain objectives are just not going to pan out, or the obstacles are higher than we planned for, it is far better to face up to these issues as soon as possible, and modify (or even abandon) objectives to adjust to the new realities. The same holds true for external influences – a result of market, competitive, economic, disruptive or other short- or long-term changes. As CEO, only you can “adjust the sails.” It’s imperative that you remain alert and take action quickly!
5) Be the Best Captain You Can, for the Sake of Your Ship... and Yourself – No one said being CEO would be easy, because it’s not. Sometimes it’s hard to keep the right perspective of what the end game really is. As Yogi Bera once said “If you don't know where you are going, you will wind up somewhere else.”
There are two things to keep in mind when thinking about the longer-term outcomes: First, you will probably never be able to achieve all the goals you set for your business or personal life, but if you seek to do your personal best along the way, you will have greater success as you move towards achieving those goals.
Second, as a CEO you are responsible for thinking of your long-term personal objectives, including what comes after your current position. With the average lifespan of a CEO being between three to seven years with one company, it’s important you think about what you would like to do next, and start to set the stage. That includes preparing the organization (discretely, of course) by developing good succession plans and setting an excellent long-term course, as well as making sure that you also are personally prepared, both financially and mentally, in terms of what you may want to do next. While you may be overwhelmed with the day-to-day whirlwind of your role of CEO, now is the time to start thinking and planning for your future – as it will be here before you know it!
Serving as CEO is both complex and rewarding. Success is not guaranteed, but it is far more likely if you are clear on what must be done by you, and not by others, to keep the ship asail and to reach as satisfactory completion of your journey as the Captain of this ship.