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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Every division in a company will need a single top decision maker.
For example, the Chief Operating Officer (COO) will be the decision maker for things that are relevant to operations (like the need to open a new production facility). The Chief Financial Officer (CFO) will make decisions (or more likely advise other divisions) based on finances, such as where a new production facility will be most profitable. A Chief Strategy Officer (CSO) will advise where to open a facility based on risk factors.
A CEO will take in all this information from the different C-levels and be the ultimate authority to make a decision. The COO may want to open the facility locally to make higher quality products, the CFO may want to open it in China to save money, and the CSO may want to open it in Mexico because of risks with operating in China. The CEO will use all this information to make a decision on where to actually open the facility.
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