Essay on Chief Executive Officer

Chip’s Widget Inc. has been under the excellent management of its operation and resources for a long time and has attained a considerably high success level. The Chief Executive Officer has consistently decided that has brought positive impacts and significant growth to the company. Sadly the current CEO will be resigning in the next 12 to18 months, creating a demand to look for a new talent either from within the company or external personnel to succeed in the position. Considering the following functions of the CEO, it is vital to conduction a succession plan that will enable the Human Resource Department and the whole company to select the most effective, appropriate, and productive Chief Executive Officer (Aulia & Siregar, (2018). First, the CEO is the carrier of the company’s image, which portrays the business’s publicity in terms of quality and safety in its products. Also, the CEO is the mediator between the company’s stakeholders and the board of directors through being a point of communication. Above all, the CEO is the core and final decision-maker of the company’s managerial, corporate, and operational and resources issues (Aulia & Siregar, (2018).

Therefore, it is essential to prioritize the succession plan by assessing internal talents to identify relevant traits among the companies stakeholders to develop appropriate candidates with abilities to serve the company. Since the operational officer has the second rank after the CEO, it is relevant to nominate him as a potential candidate. Also, keeping in mind his functions in the organization, it is no doubt that his capability can be of the company’s successful running and decision-making (Tohatan, 2020). The operational manager has leadership skills necessary for formulation, improvement, and implementation of stipulated practices, policies, and processes in the company. He is also responsible for planning the inventories, purchasing materials and efficiency, and examining the financial information to enhance profitability in the organization. Other abilities such as recruiting, training, supervising, managing forecast and data that helps the company monitor and perform high-quality products are also important. These traits give the operational manager the ability to perform the roles of the CEO (Tohatan, 2020).

However, there is a need to develop other skills for the operational manager to be a competitive and efficient Chief Executive Officer. First, the active manager will have to have the ability to establish and build a relevant relationship with coworkers, clients, and other companies that may be necessary for the company’s success. This strength will enable the home to form a positive image of the organization and for the CEO, which will promote the maintenance of clients and the company’s longevity (Tohatan, 2020). Another critical strength the operational manager should develop is the ability to responsible and accountable for the decisions he will be made concerning the business. He should understand his influence on other stakeholders and hold full accountability and responsibility for every action and determination within the corporation. He should never be looking for blames but instead be a result-driven individual by making it clear on their expectation in any case of their interactions with board members, clients, and employees (Tohatan, 2020). Lastly, the operational manager should ensure he has the strength to strategizing towards the business operations. He should have suitable planning tactics to ensure maximum ability to compete in the stiff corporate market. Thus, the operational manager should develop the ability to build the relationship, be accountable and strategic (Tohatan, 2020).

Additionally, there are weaknesses in the operational manager that may hinder him from being a robust Chief Executive Officer. First, the functional manager has to lack trust in other stakeholders in the company. This weakness makes him take too many tasks than he can handle because he feels other employees cannot perform well enough. Second, instead of focusing on the employee’s business operation outcomes, the operational manager, the manager, follow up every tiny detail in the organization on what has to be done (Aulia & Siregar, (2018). Third, he sometimes fails to share relevant materials and information because the valuable company information is not safe with the employees. Another weakness is the inability to get overcome stagnation in compromising circumstances. As a result, the operational manager cannot sometimes make suitable decisions in dilemmas (Aulia & Siregar, (2018). Lastly, the active manager sometimes becomes hypocritical, especially when he creates a culture, environment, and rules that he finds hard to comply. This causes him to hold other employees accountable for fault and failure in the organization, yet he had done nothing to ensure such occurrences happen (Aulia & Siregar, (2018).

The company will need to take an action plan towards assisting the operational manager in developing his strengths and addressing his weaknesses. First, the company should allow the functional manager to do Inter-departmental collaboration, whereby he can rotate into various jobs within the business. It will help him understand every aspect of the organization and develop deeper insights that will enable him to establish strategies for problem-solving and the successful running of the business. He will spend two weeks in every department in the industry to have enough exposure necessary for learning the detailed aspects (Berns & Klarner, 2017). Also, the company can provide professional training to the manager by offering the required resources and tools and critical information about the job’s performance and enlightening him on the trends in the CEO position.

Additionally, the organization can allow the operational manager to have personal development to be holistic professional development to stabilize the manager’s intellectual, physical, and emotional experience. Physical health, emotional balance, and academic growth are necessary to help him build relationships and trust and the required skills in critical decision-making. This training and lessons should take about two months (Berns & Klarner, 2017).

Conclusion

After the operational manager has wholly learned the new skills necessary to become the CEO, Chip’s Widget Inc should take the following steps. First, the board of directors has to interview the operational manager to determine whether he is ready to function as an effective Chief Executive Chief (Kaehr Serra & Thiel, 2019). Next, the company must allot a Certain duration of time to allow the new structure of the employees, such as the new CEO and the new operational managers, to redirect their focus in their new positions in the business. The organization then takes job description redrafting, where each stakeholder reviews their accountability and responsibility for what they are doing. Then stakeholders are then sit down all the activities they are expected to do in a specific period as priorities (Kaehr Serra & Thiel, 2019). Also, not only to the CEO position, every department must share and transfer knowledge and skills to the newly recruited employees to seek support, answers, and recourse whenever they needed them. Also, the existing stakeholders must ensure that collect and remove all of their personal belongings so that the seat and places for the newcomers are prepared. After these steps, the operational manager can now succeed the there retired CEO (Kaehr Serra & Thiel, 2019).

Reference

Berns, K. V., & Klarner, P. (2017). A review of the CEO succession literature and a future research program. Academy of Management Perspectives, 31(2), 83-108.

Kaehr Serra, C., & Thiel, J. (2019). Professionalizing entrepreneurial firms: Managing the challenges and outcomes of founder‐CEO succession. Strategic Entrepreneurship Journal, 13(3), 379-409.

Aulia, D., & Siregar, S. V. (2018). Financial reporting quality, debt maturity, and chief executive officer career concerns on investment efficiency. BAR-Brazilian Administration Review, 15(2).

Tohatan, A. (2020). Strategy Manager — as a Position in the Top Management of Organizations. Ovidius University Annals, Economic Sciences Series, 20(2), 783-787.