Businesses operate in a hierarchy that is ranked according to position and responsibility. It is not a structure of power but rather of competence, and each position is responsible for doing its job effectively while serving and managing those below.
You have probably heard of different titles like CEO, CFO, HR and other initialisms. They can be confusing unless you are in upper-level management and work with these folks. For the rest of us that want to upgrade our corporate knowledge, let’s learn about the different executives in the business world.
Here are the ten types of business executives and their responsibilities:
Type #1: President
For small to medium-sized businesses, this is the top-level position. The company’s president will oversee the operations and have leadership, communication and delegation skills. In larger companies, this role will be second to the CEO.
Presidents require remarkable leadership skills to make decisions and motivate their teams. Many executives take development programs from TEC Canada or other institutions to develop their skills. The knowledge will help them succeed in the business industry.
Type #2: Vice President
This executive position ranks second or third, depending on if there is a CEO, and their role is usually specific. The answer to the president but will oversee an area within the operation rather than a general management role. These types of business executives come with experience in a defined role like finance and have great team-working skills, effective communication, and delegation strengths.
Type #3: Board Chair (COB)
This is the role of the board chair, and it is an individual elected by the board to sit at the top. They make the big-picture decisions for the business and lead the other executives while establishing the company’s corporate culture. Often, the CEO sits in this role.
Type #4: Chief Executive Officer (CEO)
A chief executive officer ranks at the top and maybe the owner or founder of the company. They are at the top of the C suite, and all other executives report to them. A. CEO’s role is to oversee the entire operation and they, implement strategies and make all the most significant decisions for the business. They are strategic thinkers, excellent communicators and understand that collaboration is the key to success.
Type #5: Chief Operating Officer (COO)
This is the Chief Operating Officer, and they are in second place in the hierarchy. Their role is operations, and they take direction from the CEO and implement their plans and strategies among the workforce. They closely work with the HR department and recruit and manage staff below them to ensure smooth operation by working with their department heads and managers. They have a business operations skill set and an understanding of recruitment and HR policies.
Type #6: Chief Financial Officer (CFO)
Next is the chief financial officer. Their position puts them in charge of the company’s finances, and some of their tasks involve:
- Financial Reporting
- Preparing budgets
- Financial forecasting
- Debt repayment
- Investing of earnings
- Financial planning
They are also responsible for finding strategic ways of overcoming financial struggles and looking for methods to reduce costs. A CFO understands the market, along with acquisitions and mergers, and will have a background in finance.
Type #7: Chief Technology Officer (CTO)
The Chief Technology Officer implements the technology used by the company and is responsible for its operation and security. The need to stay up to date with the latest advances and set up new systems as needed to be the most effective for the operation. They understand cutting-edge tech and can also build and design custom systems within the operation.
Type #8: Chief Information Officer (CIO)
This role is sometimes combined with the CTO, and they are responsible for the business’s information technology. This includes the computer systems and the tech that runs alongside them and implementing the best hardware and software for relevant employees.
The executive plans and implements IT strategies, including website operations and new software integration. A CIO understands analytics and knows how to collect data and disseminate information.
Type #9: Creative Director
A creative director is in charge of advertising and marketing for the business. They usually have a team that strategizes advertising campaigns and create the vision for the company’s presence to the public. They are creative people with a great understanding of design and marketing. They also value teamwork and understand the collaborative benefits of a company.
Type #10: Chief HR Officer (CHRO)
The HR department has a leader called the chief HR officer. Their duties are to head the department and balance the company’s requirements with the needs of the staff. They create new strategies and implement new policies to keep things running smoothly for employees and management. They understand compliance and legal issues and are aware of the needs of those within the workforce.
Other executive roles vary within companies but can also include:
- General counsel
- Sales manager
- Regional manager
- Division manager
- Chief content officer
- Department heads
These are the types of executives you will find in a company structure. They professionally perform their roles for the company’s benefit and help the workforce and business thrive harmoniously.