What is the CEO?
The chief executive officer (CEO) is the highest-ranking role and executive C-suite member of an organization. Also sometimes called an executive director, the CEO is responsible for the organization’s overall strategy, vision, goals and decisions. Long-term company expansion and profits are their primary objectives. Business owners sometimes also function as the CEO.
In larger businesses with multiple executives, the CEO’s immediate subordinates usually include other C-suite members, such as the chief financial officer (CFO) or chief operating officer (COO). The board of directors typically elects the CEO to their role and gives them a role on the board, usually as the chairperson. They often function as a connection between the board and company collaborators, tasked with balancing collaborator interest with risk management and board advice to develop long-term company strategies.
As the face of your organization, they are responsible for shaping its public image through announcements of new ventures or innovations and interactions with consumers, investors and clients.
Read more: C-Suite Executives: A Guide for Employers
What is the president?
The president is an interchangeable role that depends on the context of the company and the purpose of the role. Although their duties vary, they are typically a top-ranking executive of the company and may hold dual titles, such as CEO or COO, in relatively small companies.
Usually second-in-command to the CEO, they are responsible for implementing the CEO’s long-term company strategies into the company’s daily operations. They may sometimes lead a specific part of the company, such as a brand within a larger conglomerate organization.
The president works closely with division or department leaders to implement the CEO’s strategies. That includes building and managing organizational budget and resources, overseeing department structures and goals and analyzing measures of performance and productivity with respect to company strategies.
Key differences between the CEO vs. president
Although some functions and goals of the president and CEO overlap, their roles have several key differences.
Function
The CEO is tasked with macro-level functions, such as overseeing your organization’s overall strategy, mission, growth and financial success. Their primary goal is to increase the company’s value and improve shareholder value. In contrast, presidents are concerned with micro-level functions, including departmental strategies, operations management and financial management.
In other words, if the CEO’s strategy involves increasing company expansion and value, the president is concerned with implementing that strategy in conjunction with optimizing the company’s operations to maximize efficiency and profit margins.
Responsibilities
The CEO works closely with the board of directors and shareholders to develop company strategies and goals. Depending on the industry, CEOs make decisions about the company’s public image and culture, look for opportunities for growth, create company-wide budgets and lead the entire organization.
In comparison, the president often leads lower-level executives and employees to work toward company objectives. Their key responsibilities include overseeing sales, research and marketing strategies, optimizing company procedures and facilitating company culture and vision.
Corporate hierarchy and structure
The corporate hierarchy depends on the scale and structure of your business, but the CEO is usually the top-ranking executive who reports to the board of directors and sometimes is the chair of the board. In small businesses, they may also hold the title of president. In larger businesses, they may oversee several presidents and C-suite executives who are responsible for different company divisions.
In businesses with both a president and CEO, the president reports to the CEO and board of directors as the second-highest-ranking executive. They may lead the organization’s executives and department or divisional managers.
Outcomes
Since they have different functions and focuses, the measurements of a CEO’s and president’s success likewise differ. For CEOs, success translates to developing and maintaining a competitive presence within their market, maximizing revenue and growing company value. Presidents measure success in terms of profit margins, productivity and employee satisfaction.
What to look for when hiring a CEO
When hiring a CEO for your company, look for the following attributes.
Industry expertise
The needs and trajectories of each business are different, and your CEO should possess the industry expertise to stay ahead of market competition. Industry expertise comes with an understanding of market trends, a network of valuable industry connections and operational knowledge that lets your CEO grow a successful company.
Culture fit
Any new employee should be a valuable addition to your company culture, but it’s especially crucial for CEOs. As the leader and face of your business, they should embody and nurture its culture with authenticity.
Communication skills
Impeccable communication is a crucial skill for a CEO. They should be able to clearly and confidently share insights, company vision and other thoughts with key individuals, including executives, shareholders and partners. CEOs should also be able to harness their communication skills to foster connections with business relationships, communities, customers and other groups.
Related: 10 Effective Business Communication Strategies
Problem-solving
CEOs must possess an adaptable and problem-solving nature to handle rapidly changing markets, industries and technologies. Innovation is a crucial trait for businesses in today’s market, and CEOs must be able to make difficult decisions, provide solutions and anticipate the business’ long-term needs to stay ahead of competitors.
Read more: How to Hire a CEO (Chief Executive Officer)
What to look for when hiring a president
An effective president should possess the following traits and skills.
Leadership and upper management experience
To successfully lead your business operations, presidents should have a proven history of strong leadership and upper management experience. Good leaders are able to prioritize objectives and delegate to others, communicate effectively and develop strong teams while simultaneously handling the demands of their role.
Operational expertise
Demonstrated expertise not only enables presidents to lead your business’ internal operations smoothly but also gives them a strong foundation to develop innovative and creative strategies. With a strong understanding of market trends and processes, they can provide valuable insights and create new procedures that adapt to the needs of your business.
Motivation
A strong president and leader is committed to and invested in the collective interests of the company. They should be motivated to improve their performance with the sake of the company and career longevity in mind.
Presidents who possess strong motivation likewise influence motivation in executives, managers and employees through connections and interactions, creating a company culture of high morale and company investment.
Analytical and problem-solving
A president must have an open-minded and ongoing approach to analyzing and improving your business. They should possess the analytical and problem-solving abilities to create sustainable and profitable long-term strategies but should also have the learning agility and decisiveness to take short-term action.
