Leadership role of the business owner

The CEO's role will vary from company to company, but the larger the company the more disengaged they should become from a hands on role with day to day responsibilities.

This will be made easier once managers have been recruited to occupy key appointments (sales / finance / operational / technical)  The gathering and building of a team who will enable them to achieve their business goals is an essential part of effective leadership. 

The managers / key team players will answer directly to the CEO so their credentials must be given  careful consideration before recruitment and will need to be aligned closely to the vision of the Company, its business goals, values and beliefs.

The managers in addition to being technically competent must be able to create the appropriate behaviour to enable the 'other' staff to perform to the level expected of them and as laid down in their contract.  They must be able to communicate accurately the vision of the company and its day to day objectives while managing performance against output. 

Communication is essential.  It is the process by which we successfully transfer information from one person to another.  What seems like a simple activity is made very complicated by the consequence of the human condition to hear what we want, not what was said.  Poor communication and non-existent communication contributes to confusion, frustration, misconception and misalignment of intention at every level more than any other activity within a company.  CEO's and their managers must be able to communicate their vision with the same meaning and must be able to conduct effective meetings, team briefings and monthly progress reviews and annual appraisals. 

When employees don't get enough information or are not listened to, they form sub-groups, which generally leads to them manufacturing their own information.  We recognise these as the grapevine, cliques, or "the word on the shop floor" etc..  They all help to create disinformation, which leads to division amongst staff, a reduction in performance and commitment and at worst can erode the values and beliefs of the Company.

Effective and successful leaders plan for the future, they do not simply react to what is happening.  To avoid being controlled by circumstances, the environment and the inconsistent performance of staff, they need to develop the habit of planning and forecasting while monitoring what is happening around them, so they can make informed choices and apply sound reasoning to make decisions which ultimately lead to desired outcomes.