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Can someone who knows about how businesses are structured answer some very simple Qs please?

7 replies

BikeRunSki · 22/11/2019 06:50

I work for a very big government agency. My employer, field of expertise, geographical location of work and a particular project I am working on have been catapulted into the news recently. As a result of this, I have met with, or prepared briefing notes for a number of “big wigs”. They’ve all been lovely, and seem to be hugely respectful of my technical expertise, but I’m confused as to what all their different roles are.

Please can someone explain to me the roles/difference between:

Chief Executive Officer
Chairman
Chief of Staff
Director
Executive Director

Thank you, in managerial ignorance.

OP posts:
noodlezoodle · 22/11/2019 07:51

This varies from country to country and organisation to organisation, generally...

The CEO has a full time job as head of the company and is the person in overall charge. The buck stops there.

Chairman (or Chair) is usually chairman of the board - the board is made up of directors and executive directors who have a part time role advising the company. Some of them do real work and some of them are there for the compensation, kudos and good lunches. I think the difference between directors and executive directors is to do with whether they are legally liable for decisions made and actions carried out by the company but I can't remember which is which!

Chief of Staff is usually the person who 'staffs' the CEO or another senior executive - deputises for them, manages their communications, streamlines their diary, prioritises requests.

BikeRunSki · 22/11/2019 21:59

Thank you very much @noodlezoodtgibkbill stick to being a lowly Technical Specialist who brings their own lunch! I’m rather enjoying my 15 mins of fame though.

OP posts:
FanSpamTastic · 22/11/2019 22:11

This is to do with governance and separating certain powers.

You get what is called the "non executive" board and the "executive board".

The non executive comprises the Chairman and other Non executive directors (Aka NEDs). These people do not work in the business day to day. They usually have a wide range of experience in other businesses. They give guidance to the executive and ensure that the executive do not abuse their position in the business. They set remuneration for the executive, check the financials etc.

The executive comprises the CEO, CFO and sometimes other roles like Company Secretary, Chief Techonology/Information etc. These people do work in the business day to day.

Sometimes you also get an operational board. This will usually be the senior managers/ directors of the business.

FanSpamTastic · 22/11/2019 22:15

Similar governance also applies in education

Board of Governors = non executive

Head, deputy head = executive

Senior leadership team = operational board

DIKateFleming · 22/11/2019 22:20

Chief Executive Officer - runs the company

Chairman - in charge of the Board, but normally not a full time employee, role is to make sure the CEO is doing the right thing

Chief of Staff - can mean a few different things, often CEO's righthand person, makes sure things run smoothly

Director - member of the Board, executive directors are the ones who run the company, non-execs keep an eye on how the management team are doing and represent shareholders interests. In some big companies, the term director can be used to mean someone senior, but not necessarily a board member

BikeRunSki · 22/11/2019 22:27

Thank you! I love the comparison to schools @FanSpamTastic, I can understand that!

OP posts:
senua · 22/11/2019 22:33

Chief Executive Officer is just a poncey name for Managing Director. Ditto the Financial Director is now the Chief Financial Officer. etc etc
If they are feeling really poncey they call themselves C-suite.

FanSpam's post of 22:11 is good. The importance is the difference between the Executives (the do-ers) and the Non-Exec (the oversee-ers). Weak non-execs are a waste of luncheon vouchers. Strong non-execs can save a company from being ruined by greedy / power-mad Execs.

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