A CEO needs to be a strategic master who makes sure that the daily operations of an organisation align well with their objectives. The decision-making process can get very complicated at times and it is the CEO who needs to make the ultimate decision. Every organisation has a set of strategies that work in their favour and they stick by it. But there are times when an organisation needs to come up with something innovative to tackle a critical situation at hand.
A CEO needs to be strategically sound to make prompt decisions in times of crisis. With an effective CEO course, one can learn the art of being a master of strategic management. A CEO holds a top-tier position in a company and is considered to be the epitome of making strategic decisions, while facing new challenges, regularly.
In this blog, we have explained some of the key functions that a CEO has to perform while making strategic decisions.
Functions of a CEO as a Strategic Decision-Maker
A CEO has to perform a variety of functions within an organisation out of which, strategic decision-making is one of the key aspects. One can learn the art of mastering strategic decision-making with the help of an insightful certificate course in management.
One of the major functions of a CEO as a strategic decision-maker is stated as follows:
Build a strong organisational culture
The first task of a CEO as a strategic decision maker is to clearly define their goals concerning the type of business they are associated with. It is the job of the CEO to build an organisational culture that suits their objectives so that adopting strategy decisions becomes much simpler and more efficient at a later stage.
However, there is not any particular way of achieving the goals of an organisation. A CEO can decide on various dynamic approaches and involve innovative ideas in order to establish a strong company culture. Individuals aiming to become successful CEOs in future can sign up for effective CEO training programs to achieve the skill of a strategic decision-maker.
Establishing organisational culture starts right from this hiring process as a motivated and effective group of personnel takes the company to greater heights. The CEO may determine which competencies to prioritise and set an appropriate atmosphere for the organisation heading ahead with a diversified staff.
An effective CEO must know how to delegate responsibilities and authority throughout the organisation. It is one of the key aspects of influencing strategic decisions in a company. It is impossible for one person to do everything on their own as organisational success is a result of a combined effort.
knowing whom to delegate and how much to delegate are two major facets of delegation. It is the duty of the CEO to ensure that every member of the company has an appropriate amount of authority. In light of this, it is also essential for a CEO to be mindful of their own shortcomings so as to cultivate a more powerful and solid workforce.
Implement of forward looking perspective
The CEO must be conscious of the balance between risk and reward while implementing a particular strategy. A CEO must have a forward-looking perspective that allows other employees to remain motivated and help the company achieve its potential. It includes eliminating reckless decisions and prioritising the right tasks at the right time.
CEOs must take risks in moderation as following the same safe strategies may not work all the time. With the aim of developing a sound long-term business plan, prudence in taking chances is required.
The degree of risk-taking depends upon the size of the company. In the case of a small business, stakeholders tend to refrain from indulging in highly risky strategies. However, in the case of huge MNCs, investors may accept a risky but rewarding strategy.
Capitalise on experience
Generally, the position of a CEO is achieved after a lot of experience in the industry. So then no what situations may arrive and what is the course of action that can be taken at such times. Hence, it is important that while making strategic decisions, CEOs trust their business instincts along with studying the relevant data.
In times of crisis, there may not be quantitative data to analyse numbers. It becomes extremely difficult for managers to choose the course of action. That is the time when CEOs should utilise their experience and rely on it. However, CEOs must refrain from making visible decisions and act according to their knowledge and experience.
Stay versatile and adaptable
When it comes to making strategic decisions as a CEO, adaptability is one of the most unappreciated resources. The business world is dynamic and erratic in nature and flexibility must be maintained in every organisation. It helps to simplify the workflow and is a powerful tool which assists in making changes to the standard plans as and when required.
Adopting versatile and flexible strategies can help companies prepare for the future. It can be done by implementing an effective and durable review procedure that makes it possible for companies to grow by learning from their mistakes.
Companies generally have regular board meetings and the CEO can closely examine the review projects. They can suggest strategic ways in which the projects can be carried on for better results.
Streamline communication process
An organisation can be strategically sound if it has a good communication system. The CEO must communicate with team members and share their ideas on adopting future plans. The CEO is the leader and has the responsibility to ensure that the stars are dedicating their energy in the right direction. A CEO makes sure that everyone is working in collaboration with each other to achieve the collective target.
In this technologically advanced world, companies can communicate through their own company portal and pass on important information in a more quick and effective manner. Elevating and streamlining the communication process is one of the key aspects of regulating strategic decisions within the organisation.
Being a strategic decision-maker for an entire company as the CEO is not an easy job. One needs to keep a lot of things in mind and analyse multiple parameters before finalising a decision. Becoming a CEO in the future is every management professional. One may sign up for a chief executive officer course to learn how to master the art of strategic decision-making.
The Executive Certificate Programme For Strategic Chief Executive Officers, IIM Raipur by Imarticus can help you gain the relevant knowledge and skills of a strategic decision maker. Consider registering for this course and start your journey towards becoming a successful CEO soon.