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The effective CEO

The effective CEO

Although there is no absolute agreed textbook definition of what a Chief Executive Officer's role should include, there is clear agreement that the role is critical in developing and maintaining the sustainability and effectiveness of the organisation.

The saying "a fish rots from the head down", is a phrase often used by organisation management experts as a sort of shorthand diagnosis to explain why an organisation is ailing. It is a very powerful reminder that no matter how talented, experienced and hard-working the rest of the staff and volunteers might be, if the CEO is a poor performer, then the organisation will eventually succumb.

When people are asked to describe their ideal CEO, they will usually talk about people with attributes and skills that are spread evenly across two main headings:

  • The CEO as Leader/Visionary
  • The CEO as Effective/Efficient Manager

The CEO as leader/visionary

CEO's need to be actively involved in creating or shaping a compelling vision for their organisations. They must be skilled at expressing it with great passion and conviction and continually finding new ways for people to relate to it at all levels. On the alert for signs that the vision may be flagging, they are prepared to recreate it, to re- energise the organisation's work and acceptance within the community.

The CEO and the board
The board or management committee has ultimate power and usually has legal responsibility for the organisation's actions. The CEO's power is more immediate, having more day-to-day influence on organisational affairs. In practice both the CEO and the board share responsibility for organisational leadership.

A close and trusting partnership between the board and the chief executive is essential for good governance. It is up to the CEO to help set the agenda, assemble the information and make recommendations that shape the board's discussions.

Board members need to build sufficient confidence in the leadership of the CEO to trust that the operational micro-issues are being looked after. This frees them to concentrate on their ultimate role of fulfilling their responsibilities to the organisation's stakeholders.

The board/CEO relationship is particularly important when planning for the future. Having more relevant information than the board, the CEO must be involved in setting future directions and strategies. Being directly responsible for implementation of the plan, he/she needs to guide the board towards a vision and long-range goals that are both sensible and achievable.

The CEO and the external environment
The CEO needs to consistently present the organisation and its mission, programs, products and services in strong, positive images to relevant stakeholders and the general public.
Good public relations staff or consultants are important to get the message across and build reputation, but unless the reputation is based on concrete leadership in the field, it will be seen by an increasingly cynical public, as empty 'spin'.
It is up to the CEO to set the organisation's direction through building the vision and strategies that will win respect and following. Donors and other investors need to feel that the organisation has clarity of vision and purpose. CEO's must set the ethical standard. They need to practice what they preach and if mistakes are uncovered, be prepared to face up to the challenge of addressing the fault and correcting what is wrong, even if it is a long and painful road.
This is a function that cannot be delegated because the CEO's leadership style eventually sets the tone and style of the rest of the organisation. It becomes the benchmark for how well or how poorly the organisation is judged by the public - even those organisations that have long traditions and previously well-established cultures.

The CEO and staff
The CEO is responsible for creating the right internal climate for the organisation. An effective CEO is able to articulate the vision to paid and unpaid staff so that they know exactly why they do what do and feel great doing it. They are able to translate excited enthusiasm, especially in volunteers, into productive work. Some lead by example, others are powerful speakers and or persuasive writers. All of them know that they are directly responsible for maintaining staff morale.

This involves creating an atmosphere of respect and support for their work. Effective CEO's know that they can't control everything that happens in an organisation. They learn that they need to sublimate their own egos and focus on recognising strengths and abilities elsewhere in the organisation. By encouraging all staff to spend as much time as possible using these strengths, they motivate and engage them to work purposefully. At the same time, mature CEOs recognise their own strengths and are unafraid to delegate their areas of weakness to others who have strengths in these areas.

Generally, effective leaders know that to attract and retain talented and enthusiastic paid staff and volunteers, they genuinely have to care about them and tangibly demonstrate that they do in meaningful ways.

The CEO as effective efficient manager

Technically, the CEO is ultimately responsible for overseeing the total operations of the organisation. This does not mean that the CEO should have intimate knowledge of the detail of every aspect of the work. Rather, effective CEOs set in place systems that keep them in touch with what else is happening away from the organisation, without losing contact with what is happening at all levels within the organisation. They appropriately delegate responsibility and authority within the organisation so that mutually agreed goals and objectives are met and progress is regularly reported on in all of the following areas:

Planning
This involves identifying aims, objectives, strategies, responsibilities, timelines and resources required to achieve the organisation's mission.

The CEO oversees design, marketing, promotion, delivery and quality of programs, products and services. Responsibility also includes developing evaluation strategies and adjustment of systems, processes and structures in response to evaluation findings.

Human Resource Management
This involves managing the paid and volunteer staff according to approved personnel policies and procedures that fully conform to current laws and regulations.

Financial and physical resources management
It is the Ceo's responsibility to present the yearly budget for Board approval and to manage the organisation's resources within those budget guidelines according to current laws and regulations. This includes undertaking regular risk management analyses and implementing strategies to prevent and deal with perceived risks.

Fundraising
The CEO of a not for profit or community organisation also overersees fundraising planning and implementation, including identifying resource requirements, researching funding sources, establishing strategies to approach funders, submitting proposals and administrating fundraising records and documentation.

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Communities in Control Conference 2013

I'M ALRIGHT JACK: Reclaiming community in a selfish world

26, 27 & 28 May - Melbourne

It's back by popular demand. See Tony Jones, Ita Buttrose, Professor Richard Wilkinson and more great speakers and get inspired.

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