Here we will learn more about President Vs CEO.
Welcome to the corporate world, it’s competitive but where more people invest, there more money is. Well, like every field has its perks, corporations have the basis for growth, management, and excellence. Do you want an exciting job? A more work and more money job? Then the corporate world has various options for you. But before getting started with a job, learn about the corporate structure which can benefit you in many ways.
The working of the corporate world depends on a lot of positions; board of directors, officers, employees, and shareholders & owners. And the highest-ranking job positions are the CEO and the president, who hold the highest command of an organization. Sometimes, the owner of the company also may take either of the roles as per their vision to run the business. And somehow, the two titles overlap one another as they work closely with each other. But serve different roles and responsibilities.
To give you something to look up to, you can understand a CEO with a great and promising vision for the company. And on the other hand, the president is the one who takes over to manage the company to give results, making the CEO’s vision into reality. But can the roles switch? Does a role undermine the other? Or let’s distinguish each role and find out who holds a greater command?
The role of the president is to be the leader of the company’s executive group. The president works directly below the CEO, the functioning work is to keep an eye on the day-to-day operations in financial management. He/she takes the senior-most title to preside over the business. The responsibilities of a president can be many and vast, and well can be different according to the business size and type. Though, the main prospects of a president are related to logistics of the business operations and ensuring effective implementation of the company’s policies.
In the case, where there is no existing CEO then, the president holds the ultimate power and position in a company. To put it simply, if a president works with a CEO, then the CEO will be the head salesperson and the president serves as the head manager. The major responsibilities a president takes care of are:
- To Handle the budget and finances – The president structures the daily operations of the company within mind the business strategies and objectives set by the CEO. They work in harmony with all departments whether all maintain a budget or not, and try to resolve any financial issues if they exist.
- Setting a pathway for managers – A president is directly engaged in the structure of management a company works with. And work with department managers to lead their team hassle-free.
- Keeping a record of employee performance – With the use of the CEO’s vision and goals for the company they look out for the employee who works in that direction. They find efficient traits and skills in the performance of an employee.
- Carry out the CEO’s business ideas – One of the main objectives on a president’s plate is to execute the strategies of the CEO’s plan for the company. The vision of the CEO matters the most in the working of the company. They are responsible for organizing and reorganizing departments to enhance the board of director’s vision to achieve the CEO’s goal.
- To give suggestions to the board of directors – The president is closely related to the board of directors, and directly answers to them as well as the CEO. Thus, they have the authority to provide recommendations and opinions on logistics & operations, and how to impart the goal of the company.
The presidents are often designated as a chief operating officer (COO) i.e a partner of the CEO you can say. But with responsibilities to execute the CEO’s ideas and vision for the company. The measure of the president’s work can be dignified by the direct influence of the performance of the company.
The CEO: Chief Executive Officer
The highest position in a company is the CEO aka executive director. The CEO acquires a seat on the board of directors and in some instances the leadership. The CEO has big responsibilities which include managing everyday operations, resourcing the company, taking corporate decisions, being the medium between the board of directors and corporate operations. And they often represent the face of the company. And their work holds great importance for a company to grow sales, gain profits, and are successful. Because a great vision is a great start to live a dream.
CEOs are entitled to report to the board of directors or shareholders/ owners, and not any other positions. The roles of a CEO are many, the common responsibilities are:
- To set a vision for the company – The CEO sets promising long-term goals to achieve success. They direct the company towards the goal and frames the impact of the company. They set values for the company’s processing and products. Though the CEO alone sees a vision in the corporate world but takes the community all together to reach the goal.
- Seeking scope for business operations – CEOs are considered to affect the company’s daily functions regulated by making and delegating large-scale business strategies. Their unique relations with the board of directors and corporate officers are the key to this role.
- The public face – If this doesn’t give you a celeb feel, nothing can. Being a CEO is about the hardships of the responsibilities and represents the company what it stands for. They not only provide business strategies and visions but raise high-profile clients too. They are responsible to announce, share, and deal with products & clients of the companies.
- The interconnection between the board of directors and operation – The primary person who is responsible to give, seek, and enact in a company is the CEO. They got an insight into what is the way of working of the company, how the relation of the board and the expectation from the board.
If you overlook the duties expected by a CEO are the duty of care, the duty of loyalty, and the duty of disclosure. This reflects the CEO functions as the pillar of the company. And that provides the essential role in which the organization thrives. The legacy of a company is the direct effect to measure a CEO’s performance in the company.
In context to power, you must have figured out the CEO has more power as well as responsibilities than a president of a company. In the field of corporate, the structure changes as rapidly as the growth. And thus, the CEOs can take binding decisions on behalf of the company on their own, the board of directors may or may not be informed. Likewise, the CEO has the sole power to appoint or reject an applicant or dismiss an employee from a job title.
On the contrary, the president is often regarded as the highest-level manager but can’t make single-handed decisions for the company. They are forbidden to change any course of work and management in a company.
This is the general idea of power how the president and the CEO have. As seen the success of a company, is the organizational substantiality for a CEO, and is organizational growth for the president. Now, let’s see the key points which make the difference in the two roles.
- The CEO primarily focuses on the maximization of the wealth of the company, in comparison to the president’s aim for the company’s growth in profits.
- The CEO takes the responsibility to plan and process broad strategies to create a vision, and against the president’s responsibility is to implement the business strategy.
- The CEO aims to gain effectiveness in work & ethics and to the top chain of command whereas, the president focuses on the efficiency of work and business.
- The CEO makes the new strategies to be implemented, such as advanced tools. And the president further takes the responsibility to put those changes into action.
In a general sense, the president is concerned with the micro-tasks and manages to sync the departments to a single goal. On the other hand, the CEO is concerned with both macro and micro-tasks in a company where the CEO is obliged for the macro tasks i.e major decisions.
The position of president and CEO takes huge responsibility in a firm and drives through committing to business for a company for its growth and advancement. As discussed, both positions are intertwined yet work separately in the corporate world without which the company won’t stand. The main outlook for the CEO is to look after the planning and ideas. And the president is bound to look after the execution of those plans. The motto CEO has is ‘Doing right things’, and the president goes for the motto ‘Doing the things right.
1. Is the owner the same as a CEO or president?
A business owner can take either of any roles he pleases. Depending upon what things are in focus results for him to be called a CEO or president of the company. Running the business takes more than a single man, thus, establishing a board of directors, and what they are best suited for is to be entitled to a CEO. And, to implement in the workings of the company by exploring the depths of business operations is the job of a president.
2. How to become a CEO or president of a company?
The job title of CEO or president isn’t made for freshers, the job demands challenging aspects of the corporate world for which a person is ready when experienced. Don’t undermine your confidence, take the job title as your top-tier than your first step into the corporate world. Getting a bachelor’s degree in business admiration or management helps to learn the basic principles of the corporate world. Try to gain experience whenever possible; though the courses provided nowadays have made internships compulsory, to seek out full or part-time jobs to uplift your CV will work tremendously for you. And then, if you have the zeal for the concepts, techniques, and implementing business strategies go for a master’s in business administration, which can give more depth and opportunities in the corporate world.