Why do companies need people in charge of the entire company? I get that certain parts of the company (i.e. production, shipping, marketing, etc) need a leader / someone who keeps an overview. But why do they need someone at the top of the company, who’s just there to.. be someone to represent the company? In most cases I’ve heard of, the CEO is in charge of pretty much everything, but barely knows anything about every individual thing the company does. So why not have no CEO, and instead just leaders of individual groups? Why does someone have to be on top of everyone?
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The CEO’s job is to see and communicate the big picture… to make sure the production, shipping, marketing, etc. are on the same page; set the course/strategy for the company (that will determine what they produce, how they ship/sell it, what market niche/marketing message they should focus on); communicate the company’s vision to employees, investors.
Let’s say you’re a car company. Sure, there are people who specialize in running design, there are people who specialize in production, there are people who specialize in sourcing parts, there are people who specialize in marketing. But who decides whether the company gets out of the sedan business to focus on SUVs? Who decides whether company has path forward focusing on hybrids vs. jumping into EV strategy? Who decides what market demographic to go after, whether it’s the same customer base as before or they want to pivot given shifts in auto market? And who communicates all that to Wall St.?
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