Chief executive officer

Chief executive officers hold the highest ranking in a pyramidal corporate structure. They are able to hold a complete idea of the functioning of the business, its departments, risks, and stakeholders. They analyse different kinds of information and create links among them for decision-making purposes. They serve as a  communication link with the board of directors for reporting and implementation of the overall strategy.

The following job titles also refer to chief executive officer:

managing director
senior executive officer
CEO
president
chairman

Bachelor’s degree is generally required to work as chief executive officer. However, this requirement may differ in some countries.

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

• the nature of the work performed in an occupation in relation to the characteristic tasks and duties
• the level of formal education required for competent performance of the tasks and duties involved and
• the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Chief executive officer is a Skill level 4 occupation.

These occupations, although different, require a lot of knowledge and skills similar to chief executive officer.

chief operating officer
branch manager
business manager
department manager
strategic planning manager

These occupations require some skills and knowledge of chief executive officer. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of chief executive officer with a significant experience and/or extensive training.

This knowledge should be acquired through learning to fulfill the role of chief executive officer.

Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Financial management: The field of finance that concerns the practical process analysis and tools for designating financial resources. It encompasses the structure of businesses, the investment sources, and the value increase of corporations due to managerial decision-making.
Marketing management: The academic discipline and function in an organisation which focuses on the market research, market development, and the creation of marketing campaigns to raise awareness on the company’s services and products.
Business process modelling: The tools, methods and notations such as Business Process Model and Notation (BPMN) and Business Process Execution Language (BPEL), used to describe and analyse the characteristics of a business process and model its further development.
Company policies: The set of rules that govern the activity of a company.

These skills are necessary for the role of chief executive officer.

Integrate strategic foundation in daily performance: Reflect on the strategic foundation of companies, meaning their mission, vision, and values in order to integrate this foundation in the performance of the job position.
Conclude business agreements: Negotiate, revise, and sign mercantile and business documents such as contracts, business agreements, deeds, purchases and wills, and bills of exchange.
Imprint visionary aspirations into the business management: Integrate ambition and visionary plans in both the planning and the day-to-day operations in order to set goals for the company to strive for.
Strive for company growth: Develop strategies and plans aiming at achieving a sustained company growth, be the company self-owned or somebody else’s. Strive with actions to increase revenues and positive cash flows.
Develop organisational policies: Develop and supervise the implementation of policies aimed at documenting and detailing the procedures for the operations of the organisation in the lights of its strategic planning.
Establish collaborative relations: Establish a connection between organisations or individuals which may benefit from communicating with one another in order to facilitate an enduring positive collaborative relationship between both parties.
Lead managers of company departments: Collaborate and guide the managers of the departments of a company in terms of the objectives of the company, the actions, and expectations required from their managerial scope.
Analyse business objectives: Study data according to business strategies and objectives and make both short-term and long-term strategic plans.
Show an exemplary leading role in an organisation: Perform, act, and behave in a manner that inspires collaborators to follow the example given by their managers.
Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
Negotiate with stakeholders: Negotiate compromises with stakeholders and strive to reach the most beneficial agreements for the company. May involve building relationships with suppliers and customers, as well as ensuring products are profitable.
Analyse financial performance of a company: Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.
Track key performance indicators: Identify the quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their operational and strategic goals, using preset performance indicators.
Liaise with shareholders: Communicate and serve as communication point with shareholders in order to provide an overview on their investments, returns, and long-term plans of the company to increase profitability.
Shape corporate culture: Observe and define the elements in the corporate culture of a company in order to reinforce, integrate and shape further the codes, values, beliefs and behaviours aligned with the company’s aims.
Develop revenue generation strategies: Elaborate methodologies through which a company markets and sells a product or service to generate income.
Integrate shareholders’ interests in business plans: Listen to the perspectives, interests, and vision of the owners of the company in order to translate those guidelines into pragmatic business actions and plans.
Delegate activities: Delegate activities and tasks to others according to the ability, level of preparation, competence and legal scope of practice. Make sure that people understand what they should do and when they should do it.
Develop company strategies: Envision, plan, and develop strategies for companies and organisations aimed at achieving different purposes such as establishing new markets, refurbishing the equipment and machinery of a company, implementing pricing strategies, etc.
Plan medium to long term objectives: Schedule long term objectives and immediate to short term objectives through effective medium-term planning and reconciliation processes.
Define organisational standards: Write, implement and foster the internal standards of the company as part of the business plans for the operations and levels of performance that the company intends to achieve.
Assume responsibility for the management of a business: Adopt and assume the responsibility that entails running a business, prioritising the interest of its owners, the societal expectation, and the welfare of employees.
Develop business plans: Plan, write and collaborate in the implement business plans. Include and foresee in the business plan the market strategy, the competitive analysis of the company, the design and the development of the plan, the operations and the management aspects and the financial forecast of the business plan.
Shape organisational teams based on competencies: Study the profiles of collaborators and decide the best place for directors and collaborators following an strategic mindset and serving to the goals of the company.
Make strategic business decisions: Analyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the options and alternatives to a challenge and make sound rational decisions based on analysis and experience.

This knowledge is sometimes, but not always, required for the role of chief executive officer. However, mastering this knowledge allows you to have more opportunities for career development.

Mergers and acquisitions: The process of joining together separate companies and relatively equal in size, and the purchase of a smaller company by a bigger one. The financial deals, the legal implications, and the consolidation of financial records and statements at the end of the fiscal year.
International trade: The economic practise and study field that address the exchange of goods and services across geographic borders. The general theories and schools of thought around the implications of international trade in terms of exports, imports, competitivity, GDP, and role of multinational companies.
Airport planning: Know airport planning for different types of aircrafts; use that information to mobilise resources and people in order to handle the aircrafts while they are in the airport.
Airport environmental regulations: The official regulations for environmental standards in airports as dictated by national codes for planning airport facilities and related developments. These include regulatory aspects which govern noise and environmental aspects, sustainability measures, and impacts in relation to land use, emissions, and wildlife hazard mitigation.
Business law: The field of law concerned with the trade and commerce activities of businesses and private persons and their legal interactions. This relates to numerous legal disciplines, including tax and employment law.
Subsidiary operations: The coordination, processes, and operations revolving around the management of subsidiaries either nationally or internationally. The integration of strategic guidelines coming from the headquarters, consolidation of financial reporting, and abidance by the regulatory mandates of the jurisdiction where the subsidiary operates.
Joint ventures: The legal agreement between companies which get together to create a temporary legal entity where they can share knowledge, technology, and other assets aiming at developing new products or services appealing to the market. Also, to share the expenses and revenues of the venture.
Airport operating environment: Thoroughly understand the airport operating environment, the operational characteristics, services, activities, and procedures of a general aviation airport service area, as well as of those of the suppliers, partners, and other airport agencies.

These skills and competences are sometimes, but not always, required for the role of chief executive officer. However, mastering these skills and competences allows you to have more opportunities for career development.

Apply export strategies: Follow and implement strategies according to the size of the company and possible advantages towards the international market. Set goals to export products or commodities to the market, in order to minimize risks for potential buyers.
Implement airport emergency plans: Design and execute the plan to ensure full implementation of emergency procedures during any crisis or disaster situations. During development of the plan, envision the way crew members should work together during preventative, and actual emergency situations. Manage communications in the airport, prepare evacuation procedures and routes, and restrict access to zones during simulations or real emergency situations.
Implement improvement procedures in airport operations: Carry out improvement procedures in airport operations based on an understanding of the needs of an airport. Plan and develop improvement procedures using adequate resources.
Motivate employees: Communicate with employees in order to ensure that their personal ambitions are in line with the business goals, and that they work to meet them.
Interact with the board of directors: Present the results of the company, answer questions in regards to the organisation, and receive guidelines on the future perspectives and plans for the company.
Ensure lawful business operations: Comply with legislation in the daily operations of a company
Speak different languages: Master foreign languages to be able to communicate in one or more foreign languages.
Provide assistance to a variety of airport users: Satisfy needs of various types of airport customers; prepare and implement plans to address the request of stakeholders.
Describe the financial situation of a region: Consider a number of variables such as political, social, and economic in order to analyse and describe a region or country from a financial standpoint.
Disseminate general corporate information: Answer questions, resolve doubts, and solve inquiries in regard to general institutional and corporate information such as program rules, regulations and procedures. Assist with information to both, employees and public at large.
Evaluate performance of organisational collaborators: Evaluate the performance and results of managers and employees considering their efficiency and effectivity at work. Consider personal and professional elements.
Evaluate budgets: Read budget plans, analyse the expenditures and incomes planned during certain period, and provide judgement on their abidance to the general plans of the company or organism.
Implement operational business plans: Implement the strategic business and operational plan for an organisation by engaging and delegating to others, monitoring progress and making adjustments along the way. Evaluate the extent to which strategic objectives have been achieved, learn lessons, celebrate success and recognise people’s contributions.
Abide by business ethical code of conducts: Conform and follow the ethical code of conducts promoted by companies and businesses at large. Ensure that operations and activities do comply with the code of conduct and ethical operations the supply chain throughout.
Define the corporate structure: Study different company structures and define the one that best represents the interest and goals of the company. Decide among horizontal, functional, or product structures, and managerial independency in the case of multinationals.
Show intercultural awareness: Show sensibility towards cultural differences by taking actions which facilitate positive interaction between international organisations, between groups or individuals of different cultures, and to promote integration in a community.
Keep updated on the political landscape: Read, search, and analyse the political situation of a region as a source of information applicable for different purposes such as information, decision-making, and management, and investments.
Follow the statutory obligations: Understand, abide by, and apply the statutory obligations of the company in the daily performance of the job.
Apply import strategies: Follow and implement strategies for importing according to the size of the company, the nature of its products, the available expertise, and business conditions on the international markets. These strategies include procedural and strategic issues and involve the use of customs agencies or brokers.
Identify airport safety hazards: Spot threats related to security at the airport and apply procedures to counteract them in a quick, safe, and efficient way.
Manage publicly traded companies: Manage companies participating in the financial market with all the implications it brings such as valuation of the company based on the market, scrutiny by regulatory organisations, disclosure of financial statements, and duty to external investors.
Apply airport standards and regulations: Know and apply the accepted standards and regulations for European airports. Apply knowledge to enforce airport rules, regulations, and the Airport Safety Plan.
Impart business plans to collaborators: Diffuse, present, and communicate business plans and strategies to managers, employees making sure that objectives, actions, and important messages are properly conveyed.
Develop professional network: Reach out to and meet up with people in a professional context. Find common ground and use your contacts for mutual benefit. Keep track of the people in your personal professional network and stay up to date on their activities.
Get involved in the day-to-day operation of the company: Collaborate and perform hands-on work with other departments, managers, supervisors, and workers in different aspects of the business from preparing accounting reports, envisioning the marketing campaigns up to having contact with clients.
Build international relations: Build positive communication dynamics with organisations from different countries in order to build a cooperative relationship and optimise information exchange.
Prepare airport emergency plans: Prepare an airport emergency plan that ensures the safe and efficient handling of any emergency situation that may arise.
Implement strategic planning: Take action on the goals and procedures defined at a strategic level in order to mobilise resources and pursue the established strategies.

1120 – Managing directors and chief executives

 

 

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References

1. Chief executive officer – ESCO