What Kind of CEO are You?

A conductor may not know how to play every instrument in his orchestra, but he must know the parameters of each instrument and what can be expected of each performer.  So must the CEO of a company with his or her employees.  Lee Iacocca may not know everything there is to know about making cars but not many people know the ins and outs of the automotive industry the way he does.  A CEO must be proficient in many different aspects of business but at some point, most business owners come to the realization that their forte is in one of three categories:  sales, operations or finance.

This doesn’t mean if a CEO is an expert at one, he’s exempt from paying attention to the other areas of his business.  It also doesn’t mean that a CEO can’t become more proficient at a different facet of the business.  It may just mean that everyone has their strong suits that they naturally excel in and other functions might be better left in the hands of another executive.

Even though we all have our strengths and weaknesses, the CEO of a company is responsible for all that goes on within the confines of the company.  No one can be an expert at everything.  Therefore, the most appropriate thing is to do what you do best and have others around you with complimentary talents whose assets counterbalance your deficits. 

Sales CEO

If you are a sales-oriented CEO, then you are probably the extroverted type who could sell sand in a desert.  You have an excellent understanding of your company’s products or services and you know how to articulate to your clients why they need them.  You can probably do this better than anyone else at your company.  You recognize the importance of sales because without sales, your company won’t make money and without money you’re out of business.

Operations CEO

This type of business owner generally possesses a meticulous personality which allows him to identify the inner workings of his company that may need improvement.  Identifying operational deficiencies is not always the easiest thing to do.  Defining protocol and creating systems to make a company operate like a well-oiled machine is extremely difficult and if your brain isn’t wired in such a way as to develop such systems, this may not be your forte.

Finance CEO

If you’re not a numbers guy, then you’re not a finance CEO.  Sometimes, this type of executive is better suited for the CFO position.  Nevertheless, many CEOs who focus on sales or the operations of their business could find themselves somewhat intimidated by the flow of cash running in and out of their business.  It could be quite overwhelming for a person who doesn’t have a mind for finance.  However, a CEO who doesn’t know his company’s numbers is a bad CEO.  This type of business owner tends to rely heavily on his accountant, bookkeeper or controller.  If so, it’s always good to have a check and balance system in place to make sure one of them isn’t deceiving you or making costly mistakes.

If a CEO is more of an operations person, this doesn’t mean that sales and finances should be neglected or mindlessly passed along to someone else to deal with.  Of course, the other areas should be closely monitored by the CEO while he focuses on what he does best.  Every business owner should recognize what their Achilles heel is.  If you’re a visionary who has great ideas but you suck at executing them, then hire someone who can handle that component at your company so that you see your concepts come to fruition.