What is a Vice President?

The Vice President (VP) is typically one of the highest-ranking leaders in an organization, often reporting directly to the President or CEO. In some companies, the President and CEO are the same person, which places the VP next in line. Vice Presidents help set strategic direction and oversee key departments to support organizational and team goals.

Vice President role hierarchy

Organizational hierarchy defines your company’s structure, creates levels of authority and defines the relationships between employees and leaders. Within this hierarchy, there are different types of Vice Presidents.

The number of VP positions depends on the size of your company and your industry. For example, banks and investment firms typically have multiple Vice Presidents, while small businesses might have one or two.

These are some examples of the VP levels within a larger organization:

• Associate VP: Colleges and universities often have Associate VPs for each division, such as Academic Affairs and Institutional Advancement. Associate VPs also exist in companies with multiple locations. For example, a retailer with 50 locations might have an Associate VP who manages the region’s long-range planning or staff development.

• Assistant VP: The Assistant VP role is similar to a Regional Director, focusing on overseeing a specific area of the business. For example, companies may have an Assistant VP of Human Resources, an Assistant VP of Operations and an Assistant VP of Marketing. 

• First VP: First VP is a common role in the finance industry. This title is often given to employees promoted to senior positions. Some companies use the title as a recognition tool. For example, if you don’t have any senior positions open, you might want to reward one of your employees with the First VP title to keep them motivated and productive.

• Executive VP: An Executive Vice President is a high-ranking officer who reports directly to the Chief Executive Officer of a company. The EVP is also a member of the executive leadership team, so they usually have substantial operational responsibilities.

Differences between a Senior Vice President and an Executive Vice President

Senior Vice President (SVP) and Executive Vice President (EVP) are two of the highest VP titles used in business. These are some of the key differences between the two roles:

• SVP: An SVP plays a strategic role within the organization, so the position usually involves leading full departments. It’s common to reward Vice Presidents with the SVP title after they’ve performed reliably for a certain number of years. For example, you might want to promote a VP to SVP after five years of service.
• EVP: The EVP reports directly to the President or other C-suite executives, so it’s a higher position within the corporate hierarchy. If the President leaves the company, the EVP might have to step in as interim President until the board can hire someone new.

The EVP and SVP positions are both above the standard Vice President role. They handle department budgets, track success metrics and are close to the top job. However, EVPs often have several employees reporting to them, so they have more management responsibilities.

Key skills, roles and responsibilities of a Vice President

A Vice President typically has these key responsibilities:

• Providing guidance to direct reports
• Building relationships with clients and vendors
• Managing budgets and monitoring financial performance
• Optimizing business processes to increase efficiency
• Ensuring alignment between departmental goals and the company’s mission and vision
• Overseeing company HR functions
• Developing and implementing strategies to give the company a competitive edge
• Collaborating with other executives
• Representing the company at leadership conferences and other business events

Key skills of a Vice President

The Vice President is a company leader, so they should be able to motivate team members and make employees feel valued. Consider hiring a VP with these skills:

• Communication: Vice Presidents communicate with vendors, customers, employees and other interested parties, so you may want to hire someone with advanced communication skills. Look for candidates with experience giving presentations, writing detailed reports and leading meetings.

• Listening: It’s helpful for a Vice President to use active listening when communicating on behalf of the business. Active listening involves focusing on and displaying cues to indicate you understand their message. When a VP engages in active listening, they ask open-ended questions, paraphrase the speaker and withhold comments until the end.

• Strategic thinking: A Vice President can think ahead, anticipating future challenges and developing plans to overcome them. This focus on long-range planning can help a business achieve and sustain a competitive advantage in the marketplace.

• Financial acumen: The Vice President manages budgets and monitors a company’s financial performance, so they can benefit from having a high level of financial acumen. Look for candidates capable of analyzing financial statements, understanding key financial ratios and making decisions based on financial data.

• Industry knowledge: If your company is in the healthcare, finance, technology or manufacturing industries, it might be helpful to hire a VP with in-depth industry knowledge. Each of these industries is heavily regulated, so hiring a VP with prior experience can help your company stay in compliance.

• Critical thinking: Critical thinking involves analyzing information and making objective judgments. This skill can help a VP make decisions related to financial management, strategic planning and talent acquisition. A VP can evaluate several potential solutions and choose whichever fits the organization’s needs and expected growth trajectory.

• Problem solving: Vice Presidents encounter various problems in their day-to-day activities, such as budget overages and software outages. This makes problem-solving a key skill for the VP role. Look for a VP who can break down complex problems, identify their root causes and develop appropriate solutions.

• Leadership: Vice Presidents motivate teams to produce quality work and reach company goals. Strong leadership skills can help a VP set an organizational vision, adapt to changing market conditions and manage change effectively. Hiring strong leaders might help your organization attract quality employees.

Roles of the Vice President

The role of a Vice President sometimes varies based on the company’s size. Here’s how each type of business can benefit from hiring a VP:

• Small business: In a small business, the VP often reports directly to a President or CEO. The VP collaborates with the other executives to make important decisions. If you hire a VP for your small business, you might also have them carry out tasks the President doesn’t have time to complete.
• Large corporation: Larger companies sometimes hire Vice Presidents to attend board meetings or represent the company’s interests in legal matters. A VP may also work directly with employees, giving them more control over engagement, turnover and morale, while the President or CEO handles strategic matters.
• Departmental Vice Presidents: Companies with many locations or departments may have different Vice Presidents representing each. In this capacity, the VP works directly with each department or location to ensure it performs according to the company’s goals. They also work closely with employees to encourage collaboration.

Responsibilities of the Vice President

Traditionally, a Vice President’s responsibilities include overseeing day-to-day activities. A VP may also perform these duties:

• Making important company decisions: A VP often makes important decisions that directly impact the company. They may also sign agreements or enter into partnerships with other companies. VPs often collaborate with senior executives during strategy discussions to ensure that decisions are aligned with overall company objectives.
• Assisting in strategic goal setting: The President, Vice President and other leaders typically set strategic goals for individual departments or the company as a whole. After setting these goals, the Vice President might guide each respective department to ensure employees know what’s expected.
• Identifying areas for improvement: Vice Presidents stay up to date on industry trends and competitor performance. This can help identify areas for improvement and find ways to address them. For example, if your company’s profit margin falls below the industry standard, your VP might assess how to reduce expenses or increase revenue.
• Making budget decisions: Vice Presidents often decide how much money to spend on equipment, software and other items. For example, the IT department may need specialized software to improve its cybersecurity efforts and better protect company data. A Vice President can decide how much to spend or which vendor to use.

Qualifications and professional background

While many Vice President roles may traditionally call for a bachelor’s degree in fields like business administration, finance or organizational leadership, some candidates may qualify based on their skills and experience alone. A degree can be helpful, but proven leadership ability, strategic thinking and operational expertise are often more important.

Most Vice Presidents have several years of senior leadership experience and a track record of leading teams, managing complex projects, and contributing to organizational growth.

The application process typically includes a résumé and cover letter, along with references and any other relevant credentials. Companies often use multiple interviews and assessments to evaluate each candidate’s fit, focusing on both qualifications and leadership capabilities.

The Vice President’s role in organizational growth

A Vice President plays a key role in supporting business growth by leading teams, tracking performance and ensuring departments operate efficiently. They help shape and execute business strategies that identify new opportunities and improve operations. Building relationships with customers, investors and partners is also part of the role, contributing to the company’s reputation and reach.

Vice Presidents are also responsible for developing talent within the organization. By supporting leadership growth and succession planning, they help ensure the company’s long-term stability and success.