Re: Business CEO Responsibilities Question
Hi PJC,<br /><br />I run a manufacturing business that is located on four different sites, all roughly 60km's apart. We have a distribution network that extends roughly up to mid Africa.<br /><br />What do I do.<br /><br />The primary thing is to steer my company in the direction that will benefit all stakeholders. This requires setting out strategies that are measured on a bi-monthly basis. I have to ensure that what we say we will do that we actually do it. Setting out a business strategy for a three year period is not as easy as it sounds.<br /><br />I have to constantly reinforce the vision of the business.<br /><br />Next I have to manage my Directors and ensure that they are not all heading in different directions. Remember these are all strong willed professionals.<br /><br />Then on a monthly basis we are required to submit a full set of accounts to Group in the U.K. The accounts pack is over 100 pages and every figure in there needs to be understood and defended if the questions arise. The accounts are a measure of how well you are running your business. These account reviews can take days.<br /><br />I have to liaise with people in similar positions to myself, both customers and suppliers.<br /><br />I also accompany sales people to customers both small and large as for some strange reason they like to see the "boss".<br /><br />I am responsible to ensure that good corporate governance is practiced at all times. This means digging around, uncovering and setting right.<br /><br />I am responsible for the overall discipline and morale in the company. This requires regular site visits.<br /><br />Large payments need to be vetted at the most senior levels. This means that I and the FD do all the cheque signing and internet banking.<br /><br />I write regular reports on the state of the business to keep my bosses in the U.K. appraised of the situation. A classic would be "Andrew, how are sales into customer X? Please e-mail me a couple of pages outlining where we are?" These requests come in hourly.<br /><br />An of course I need to think a lot. It is very difficult to explain the term "the buck stops here" until you have truly been in that position. Many people believe decisions are made in an arbtary manner. Let me assure you when you b@lls are on the line you think twice, then three times then you spend restless nights agonising. When you are truly the final decision life is very different.<br /><br />When most my staff are at home with their families biatching about the policies I have instituted I am at the office working. I get about 4 hours of broken sleep a night. Don't want sympathy, this is my choice.<br /><br />My health suffers from the stress and I have developed extremely high bloood pressure since getting the job. I suffer chest pains when under extreme stress.<br /><br />I am unable to take extended vacations as I need to be present at the businesses. I have to take vacation outside the normal vacation time making it difficult for the school going kids. In July vacation I cannot go as I need to submit the Sales Strategey plan. In the September break I have to complete the annual budget for submission in October. In December our traditional holidays I have to be on site as we need to close the year end accounts.<br /><br />Of course there are many other day to day issues that crop up.<br /><br />Recently we had an accidental death of a contractor on site. The fiducary duties of a Director is that it is my personal responsibility. If negligence of one of my staff can be proved I will be prosecuted in a criminal court. The buck stops with me, not my staff. This whole legal matter is taking a huge amount of time.<br /><br />You have to lead by example, be first in the office, last to leave. Act with integrity etc. You cannot let your hair down for a minute.<br /><br />You have to do many things alone because of the confidentiality. This means not being able to share many issues with people whos' opinion you respect. This robs one of the ever important sounding board we all need. It is often a very lonely place.<br /><br />I have to field all the calls from disgruntled customers who want to rant.<br /><br />Finally because of the position people think you know everything and that you have a ready response for everything. For some things you don't, we are just like everyone else. We have weaknesses, doubts and are still learning. We make mistakes, it's just that our mistakes are big and are opened for all to see, and, with the benefit of hindsight sit back and say "he should have done it that way the idiot".<br /><br />I also have need to entertain at lunches and dinners. Sounds great but do that for a couple of days and see how you feel.<br /> <br />I could go on but that will give you some insight into some of the things I do in the course of the day / night.<br /><br />If I were to measure my bonus (when and if I get one, have nor had one for three years) my salary with the hours worked my rate of pay is not that stupendous. For the last three years all my staff have had bonusses. I regularly work weekends, a normal employee gets overtime I get zip. Not all CEO's get the outrageous deals. We just get to see the ones that are reported. <br /><br /><br />Cheers<br />Andrew<br /><br />Oh and somewhere in this I have to find time for my wife, children and myself.<br /><br />PS: KEN - In South Africa and I am sure in the same in the U.S. the CEO's primary fiducary role is to do the right thing by the business NOT the shareholders. Thats where it's all coming unstuck, in trying to satisfy the shareholders bad business decisions are being made. By putting the business first the results will follow.<br /><br />Also I agree with you never reward someone in a manner that could cause a short terming of the business, like with stocks. It's like rewarding a salesman on turnover and not profit very soon he will give everything away at cost while he collects great incentives for his turnover and not contribution to the business.
). <br /><br />Sorry for the rant, I know there are some good corporate executives out there. But this is an issue I saw coming 8 or 9 years ago, and events over the intervening time have made me mostly more cynical.<br /><br />Look at some of the recent examples: Enron, Tyco, Worldcom, the NYSE, etc., etc. Seems like the system of checks & balances between corp boards and corp execs needs to be reengineered. Here's hoping Elliot Spitzer might have helped start a ripple that turns into a tide!<br /><br />Oh, and alot of the professonals I know may not be working 24/7, but they're sure as he** not working 9-5, either. Corporate downsizing, same amount of work with less peole to do it.