Friday, December 3rd, 2021

The Unique Role….. CEO of A Family Business

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We have grown a lot in our business- we have some good clients- some really great people… my role is changing but I am not sure how….

 If this or a similar thought has occurred- you are one of the many enlightened owners…Read this to learn how unique you are in your changing role as CEO!

 Many companies started with an idea and survival skills of the founder.  The founders value their clients; thrive on challenging themselves, recognizing and seizing opportunities.  They have good instincts, but as they grow their enterprise their role changes from tactical to strategic.  Some of these changes are understood and others not even recognized.  In order to help a founder of a successful growing organization recognize how their role or job has changed, I developed and refined over time (thirty plus years of working with business owners) The CEO Position Description of a privately owned business.  It is part of this article.

 I would suggest that you review it with an open mind and rate yourself (1-5) on each item. A (1) would be an item needing a lot of work and a (5) would be an area where you are very proficient and skilled.  There may be areas that you may find in appropriate at this time, but you will want to implement in the near future.  If the examination of this makes you uncomfortable, that is fine.  Pick an item or two needing improvement and seek some guidance to get it implemented.

 In a year from now, take this CEO Position Description out again and note your progress.  If you have a board of directors or an executive coach have them take you through a review process and make a commitment for implementation or improvement of mutually agreed upon high impact areas.

 There may be one area, the perpetuation or succession plan that you may not sense a need to think about until you need to retire.  I would suggest that the sooner you think about and develop a succession plan, the stronger your organization and the more value you create for your entity.  Ultimately, you will want to exit your business for a number of reasons: health, age, boredom or desire to take on a different challenge.  The way to create the most personal options is to think about succession as you build your organization.

 In closing:

  • View the CEO Position with an open mind,
  • Grade yourself as your personal performance review, set some goals on a couple of items needing improvement or implementation
  • Find someone you trust to share this document with to help hold you accountable for implementation.
  • Review your progress at least once a year with your advisor or coach

 

THE CEO POSITION DESCRIPTION

 Objective(s):    (Basic outcomes required of the position)

  • To ensure the survival, growth and perpetuation of the organization at a profit through a team of key Managers/Leaders and support staff.
  • Your area of personal production.
  • Build and maintain value of the business

 Functions:  (What has to be done to carry out their objectives?)

1.      Recruit and select your team of managers/leaders and key support staff.

2.      Train your managers/leaders in how to recruit, select, train, manage and motivate their team.

3.      Manage your key people by evaluating regular periodic feedback and results and measure against predetermined and agreed upon objectives and standards.

4.      Motivate key people via personal goals, achievements and career paths.

5.      Establish long term business plan

6.      Establish survival and growth plans in financial, people and market areas.

7.      Develop an organizational structure to achieve the organization’s goals.

8.      Establish and monitor basic quantitative indicators in the areas of people, production and profit.

9.      Manage the fiscal affairs of the organization i.e.…budgets, line of credit, investments, compensation programs, etc.

10.    Disseminate your management philosophy throughout the organization.

11.    Develop a mission and values statement.

12.   Select and develop your successor and formulate a business perpetuation plan.

13.   Formulate and implement a Management Development Program to meet your growth and perpetuation needs.

14.   Execute corporate social, civic and trade association responsibilities.

15.   Analyze market needs and oversee the development of products and services to fulfill these needs.

16.   Develop your area of personal production.

For more information on building your business request information on “What top performers expect from their leaders” by emailing bclinton@business-wise.com .

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