1. What is the difference between a CEO, COO, and MD?

Many people ask about the functional differences between these executive roles. CEOs are responsible for the overall strategic vision, COOs manage day-to-day operations, and MDs typically handle long-term direction and oversee business growth. Understanding their distinct responsibilities helps clarify the right hire for the organization's needs. However many companies use some of these titles interchangeably which it is always better to review role scope and responsibilities when assessing a position.

2. How do I know if my business is ready to hire a CEO?

Much will depend on the existing drivers of the business ability to deliver against their growth ambitions. Innovators who start up organisations do not necessarily have the right skills or experience to scale up the business and prepare the organisation for growth. Understand how willing the existing stakeholders are to relinquish some control to a CEO and finally assess the financial impact both in terms of affordability or in fact the cost of not hiring a competent CEO. Many organisations seek advice and guidance in order to make this critical decision.

3. What qualifications should a COO or President have?

The qualifications and experiences required for these roles are common searches. COOs need strong operational, management, and resource allocation skills, while Presidents and CEOs typically need strategic, financial, and leadership expertise. Experience specific to the industry and also relevant to the life stage of your organisation may also be considered.

4. How should I evaluate candidates for these senior roles?

Business owners often seek strategies for assessing executive candidates beyond resumes. This includes evaluating cultural fit, leadership style, and interpersonal chemistry with the existing leadership, particularly in founder-led businesses. You will also need to understand the candidates capabilities to deliver against your organisational ambition relevant to the life stage of your organisation. This is possibly one of the most important hiring decisions you will make so if you feel you are not qualified to source and interview look for help.

5. What is the expected salary for a CEO, COO, or MD?

Compensation is a frequent topic, as business owners need to ensure they offer competitive packages. Salary ranges can vary greatly depending on industry, company size, and geographic location, so people often research benchmarks. You will also need to understand benefits beyond salary that will help attract and retain the right senior business leader, these can include, variable performance pay such as bonuses, long term incentive schemes, share options. Offering a dynamic remuneration package often indicates the culture of the organisation.

6. How do the roles of GM and COO differ?

Some people seek clarification between roles like GM (General Manager) and COO, as they can sometimes overlap. GMs often manage specific business units or regions, while COOs handle operations across the entire organization.

7. What interview questions should I ask for a CEO or COO role?

Knowing what questions to ask during the hiring process for these high-stakes positions is crucial. Typical interview questions focus on leadership philosophy, problem solving and examples of where candidates have made the most difference to an organisation.

8. How do I know if an organisation is the right fit for me?

Research the company beyond the website, look for media content, review their competition, try to understand their reputation. Culture and fit are essential for sustained and effective tenure, use the interview as a two way process.

9. Should I only recruit CEO’s that have experience specific to my industry?

Specific industry experience can often be a benefit particularly if working in an industry or region that either has specific technical skill requirements or if it is heavily nuanced with an understanding of the industry. However many leadership skills are transferrable and in some cases recruiting across industry can bring a new approach that opens up new opportunities. Equally important to industry experience is cultural fit.

10. Should I promote my COO to CEO?

COO’s can often be excellent CEO’s and this route as part of a planned route of succession can be successful and also sets an example of progression within the organisation. However it is important not to default to this option simply because it is the easiest and most comfortable choice. Choosing your CEO is one of the most important hiring decisions that you will make.

𝗧𝗵𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗵𝗶𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗟𝗲𝗮𝗱𝗲𝗿: 𝗦𝗮𝗳𝗲𝗴𝘂𝗮𝗿𝗱 𝗬𝗼𝘂𝗿 𝗢𝗿𝗴𝗮𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻’𝘀 𝗚𝗿𝗼𝘄𝘁𝗵 | Senior Leadership Insights & Tips | CEOJobs.World

Blogs

𝗧𝗵𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗵𝗶𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗟𝗲𝗮𝗱𝗲𝗿: 𝗦𝗮𝗳𝗲𝗴𝘂𝗮𝗿𝗱 𝗬𝗼𝘂𝗿 𝗢𝗿𝗴𝗮𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻’𝘀 𝗚𝗿𝗼𝘄𝘁𝗵

Why Hiring the Right SBL Talent Matters

Your SBL will play a crucial role in delivering your company’s ambitions by creating strategies then leading and motivating your team to execute those strategies in the most cost-effective manner in keeping with your organisations values and culture. Just in that one sentence we have introduced 6 variables that require just the right level of capability and fit – it is a complex process and critical in determining the potential success of your organisation.

The Role of Context in SBL Hiring

Although the role of the SBL may appear generic, the context of the organisation will have a potential impact on the candidate you hire and ultimately their success. Contextual consideration may include location, revenue size, scope, industry, stage of development and business type being the main criteria.

· Location – a demonstrated knowledge and application of specific local cultural, workplace context and government regulations may impact their ability to succeed.

· Revenue Size – having been successful in a start up with a revenue of $1M does not equate to having the ability to lead a publicly traded company with a $1B revenue.

· Scope – Scope covers complexity – a local enterprise with one business vertical is less complex than a regional or global enterprise with multiple business verticals

· Industry – a much-discussed subject, can a CEO move between industries, clearly the answer is yes, however, a demonstrated successful leadership in multiple roles in the same industry can accelerate the business through knowledge and learnings.

· Stage of Development – start-up versus established growing organisation, simply said some SBL’s are better and more motivated by the start-up context versus continuing the incremental growth of an organisation in a mature stage of its development cycle.

· Business Type – different SBL’s thrive in differing business organisation types, many SBL’s do not enjoy family-owned businesses preferring the structure of established publicly traded companies. Equally some SBL’s prefer to be employed by government, non-profile or social organisations.

What are you looking for in your SBL?

At www.CEOJobs.world we’ve created a model covering 16 accountabilities to help you identify which are most important to your organisational context. We categorise SBL responsibilities into four key areas to guide organisations in hiring talent that can drive business outcomes effectively:

1. Strategic Vision and Leadership - Refers to achieving the desired outcomes or objectives with precision and success. It emphasizes achieving goals and delivering results that meet expectations.

2. People, Efficiency and Operational Management - Focuses on achieving outcomes with minimal waste of resources such as time, money, or effort. Efficiency aims to maximize productivity and optimize processes.

3. Financial Performance & Sustainability - Involves utilising resources in a prudent and cost-effective manner. It emphasises managing costs and expenses efficiently while maintaining quality and achieving objectives.

4. Governance, Risk & Compliance (GRC) - Involves utilising resources in a prudent and cost-effective manner. It emphasises managing costs and expenses efficiently while maintaining quality and achieving objectives.

SBL Accountabilities in Detail

Below is a more detailed overview of the 16 SBL accountabilities that we believe constitute the full role of a SBL, being applied as appropriate.

Within the four key areas of responsibility of the Senior Business Leader Accountability Framework there are a total of sixteen Sub-Accountabilities, four per area which based on context would vary in terms of weighting.

1. Strategic Vision and Leadership - Refers to achieving the desired outcomes or objectives with precision and success. It emphasizes achieving goals and delivering results that meet expectations. [1] The Importance of Strategic Leadership in Directing Your Organisation – 2024 Maastricht School of Management.

· Leading Strategic Direction: Leading strategic direction involves visionary thinking, effective planning, decisive action, clear communication, resource management, risk mitigation, and a commitment to organizational growth and sustainability. By providing strong leadership in setting and executing strategic direction, leaders can guide their organizations to achieve long-term success and competitive advantage in a dynamic and competitive business environment.

· Leading Strategic Growth: Strategic growth leadership requires visionary thinking, decisive action, innovation, collaboration, and a commitment to excellence. By providing strategic direction and guiding the execution of growth initiatives, leaders can position their organizations for long-term success, sustainability, and competitive advantage in dynamic and evolving markets

· Leading Strategic Organisational Development: Strategic organizational development involves guiding and overseeing the systematic and planned efforts within an organization to enhance its overall effectiveness, performance, and adaptability. It focuses on aligning organizational structure, culture, processes, and capabilities with strategic goals and objectives. It involves driving change, fostering growth, and building organizational capabilities to achieve long-term success and sustainability.

· Leading Strategic Execution: Strategic execution requires vision, planning, agility, effective communication, and strong leadership to drive successful implementation of strategic plans and initiatives. By focusing on alignment, accountability, flexibility, and continuous improvement, leaders can enhance organizational performance, achieve strategic objectives, and position the organization for long-term growth and success.

2. People, Efficiency and Operational Management - Focuses on achieving outcomes with minimal waste of resources such as time, money, or effort. Efficiency aims to maximize productivity and optimize processes. [2] Achieving Operational Excellence as a CEO and Fostering Organisational Culture – Imarticus Learning.

· Leading Operations Management: Operations management refers to the role of ensuring that the day-to-day operations of an organization run smoothly and effectively, delivering high-quality products or services on time and within budget. This involves overseeing processes, managing resources, and leading teams to achieve operational excellence.

· Leading Talent Management: Refers to the role of guiding and overseeing the processes involved in attracting, developing, retaining, and optimizing an organization's workforce to ensure that it has the talent needed to achieve its strategic objectives. It involves strategic thinking, effective implementation, and a focus on creating a positive and productive work environment.

· Team Leadership: Team Leadership is a leadership approach that focuses on setting a clear direction and goals for a team, aligning team members with a common vision, and guiding them towards achieving that vision. This involves strategic planning, effective communication, and motivational techniques to ensure that all team members are working towards the same objectives.

· Leading Communication Management: The strategic planning, execution, and oversight of communication within an organization to ensure clear, effective, and consistent messaging with an ability to define and align key messages. Strong communication leaders play a proactive role in shaping how information is disseminated, received, and understood by various stakeholders. It requires strong leadership skills, strategic thinking, effective stakeholder engagement, and a commitment to promoting clear, transparent, and impactful communication within and outside the organization.

2. Financial Performance & Sustainability - Involves utilising resources in a prudent and cost-effective manner. It emphasises managing costs and expenses efficiently while maintaining quality and achieving objectives. [3] The triple play: Growth, profit, and sustainability – McKinsey & Company.

· Leading Financial Management: Financial Management Leadership involves overseeing the strategic financial operations of an organization to ensure fiscal health, stability, and growth. It requires an understanding of all the factors that impact Balance Sheet, P+L and Cashflow.

· Financial Stewardship: A financial stewardship leader plays a critical role in safeguarding financial resources, promoting transparency, and driving financial performance in alignment with the organization's mission and values.It involves ensuring that financial resources are used wisely, ethically, and in accordance with applicable laws, regulations, and organizational policies.

· Leading Resource Management: Resource management leadership refers to the role of guiding and overseeing the strategic planning, allocation, and optimization of resources within an organization to achieve its objectives effectively and efficiently. Resource management leadership involves strategic planning, effective decision-making, optimization of resources, risk management, team leadership, and continuous improvement to achieve organizational objectives and enhance operational efficiency. Resources can include financial capital, human capital, physical assets, and time.

· Leading Organisational Capability: Organization Capability Management Leadership refers to the leadership role responsible for guiding and overseeing the strategic development, optimization, and utilization of organizational capabilities, resources, skills and competencies to achieve strategic objectives and enhance organizational effectiveness and gain competitive advantage in a changing environment.

4. Governance, Risk & Compliance (GRC) - Involves utilising resources in a prudent and cost-effective manner. It emphasises managing costs and expenses efficiently while maintaining quality and achieving objectives. [4] Why compliance must remain a priority for the CEO – Oxial.

· Governance Leadership: Refers to the processes, practices, and structures put in place to ensure effective oversight, accountability, transparency, and decision-making within an organization. It encompasses a set of principles, policies, and procedures designed to guide and regulate the activities of individuals, teams, and departments to align with organizational goals and values. Governance management is essential for organizations to establish effective leadership, maintain compliance with regulations, manage risks, make informed decisions, uphold ethical standards, engage stakeholders, monitor performance, ensure transparency, and drive continuous improvement.

· Risk Management: Risk management refers to the systematic process of identifying, assessing, prioritizing, and mitigating risks within an organization. It involves analyzing potential events or circumstances that may have adverse effects on the organization's objectives, projects, operations, or stakeholders. The primary goals of risk management are to reduce uncertainty, minimize potential losses, and maximize opportunities for achieving organizational goals.

· Legal Compliance Leadership: Legal compliance leadership involves the strategic oversight and direction of strategies, policies and procedures within an organization to ensure adherence to legal requirements, regulations, and ethical standards and mitigate risks.

· Stakeholder Relations: Stakeholder relations management leadership involves the strategic oversight and direction of activities aimed at effectively managing relationships with stakeholders who have a vested interest in an organization in order to build trust, foster collaboration, manage conflicts, advocate for stakeholder interests, and promote transparency within an organization.

Conclusion: The Strategic Importance of Hiring the Right SBL Talent

As companies navigate a competitive business landscape, there is a need for a high performing Senior Business Leader who has the capability to lead an organisation, balancing the day-to-day challenges with the need for dynamic strategic focus, long term capability development, operational excellence, financial sustainability and a key eye for compliance applied to your organisational context.

Practical Takeaway:

Finding a SBL that can drive the organisations ambition will be the most important hire an organisation will make. Investment in getting it right is not a nice to have and demands that the time is taken to fully evaluate candidates against the contextual requirements of the role. There is no silver bullet to hiring the perfect SBL, a one size fits all approach relies on luck rather than judgement. Visit www.ceojobs.world for more insights and best practices on finding the right SBL talent or contact marek.sheriden@ceojobs.world or Richard.cowley@ceojobs.world for a free consultation.

By understanding the importance of hiring SBL professionals with the right experience and contextual understanding, your business can thrive in today's complex environment.

Notes

[1] https://www.msm.nl/news-events-and-blogs/blog/the-importance-of-strategic-leadership

[2] https://imarticus.org/blog/achieving-operational-excellence-as-a-ceo-and-fostering-organisational-culture/

[3] https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-triple-play-growth-profit-and-sustainability

[4] https://www.oxial.com/grc-blog/why-compliance-must-remain-a-priority-for-the-ceo

Frequently Asked Questions

Q: 1. What is the difference between a CEO, COO, and MD?
A: Many people ask about the functional differences between these executive roles. CEOs are responsible for the overall strategic vision, COOs manage day-to-day operations, and MDs typically handle long-term direction and oversee business growth. Understanding their distinct responsibilities helps clarify the right hire for the organization's needs. However many companies use some of these titles interchangeably which it is always better to review role scope and responsibilities when assessing a position.
Q: 2. How do I know if my business is ready to hire a CEO?
A: Much will depend on the existing drivers of the business ability to deliver against their growth ambitions. Innovators who start up organisations do not necessarily have the right skills or experience to scale up the business and prepare the organisation for growth. Understand how willing the existing stakeholders are to relinquish some control to a CEO and finally assess the financial impact both in terms of affordability or in fact the cost of not hiring a competent CEO. Many organisations seek advice and guidance in order to make this critical decision.
Q: 3. What qualifications should a COO or President have?
A: The qualifications and experiences required for these roles are common searches. COOs need strong operational, management, and resource allocation skills, while Presidents and CEOs typically need strategic, financial, and leadership expertise. Experience specific to the industry and also relevant to the life stage of your organisation may also be considered.
Q: 4. How should I evaluate candidates for these senior roles?
A: Business owners often seek strategies for assessing executive candidates beyond resumes. This includes evaluating cultural fit, leadership style, and interpersonal chemistry with the existing leadership, particularly in founder-led businesses. You will also need to understand the candidates capabilities to deliver against your organisational ambition relevant to the life stage of your organisation. This is possibly one of the most important hiring decisions you will make so if you feel you are not qualified to source and interview look for help.
Q: 5. What is the expected salary for a CEO, COO, or MD?
A: Compensation is a frequent topic, as business owners need to ensure they offer competitive packages. Salary ranges can vary greatly depending on industry, company size, and geographic location, so people often research benchmarks. You will also need to understand benefits beyond salary that will help attract and retain the right senior business leader, these can include, variable performance pay such as bonuses, long term incentive schemes, share options. Offering a dynamic remuneration package often indicates the culture of the organisation.
Q: 6. How do the roles of GM and COO differ?
A: Some people seek clarification between roles like GM (General Manager) and COO, as they can sometimes overlap. GMs often manage specific business units or regions, while COOs handle operations across the entire organization.
Q: 7. What interview questions should I ask for a CEO or COO role?
A: Knowing what questions to ask during the hiring process for these high-stakes positions is crucial. Typical interview questions focus on leadership philosophy, problem solving and examples of where candidates have made the most difference to an organisation.
Q: 8. How do I know if an organisation is the right fit for me?
A: Research the company beyond the website, look for media content, review their competition, try to understand their reputation. Culture and fit are essential for sustained and effective tenure, use the interview as a two way process.
Q: 9. Should I only recruit CEO’s that have experience specific to my industry?
A: Specific industry experience can often be a benefit particularly if working in an industry or region that either has specific technical skill requirements or if it is heavily nuanced with an understanding of the industry. However many leadership skills are transferrable and in some cases recruiting across industry can bring a new approach that opens up new opportunities. Equally important to industry experience is cultural fit.
Q: 10. Should I promote my COO to CEO?
A: COO’s can often be excellent CEO’s and this route as part of a planned route of succession can be successful and also sets an example of progression within the organisation. However it is important not to default to this option simply because it is the easiest and most comfortable choice. Choosing your CEO is one of the most important hiring decisions that you will make.

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