WHEN SHOULD I HIRE A PRESIDENT?
While it may sound like the President of a company and the CEO are interchangeable terms, they have very different focuses within the business.
It's important to know just what a President does and when is the best time to hire one.
WHAT IS A PRESIDENT?
The President of a company is often the most senior person who presides over the business.
While most business owners assume the role of CEO, they need to hire a President to oversee parts of the business beyond their reach. If a company already has a CEO, the PResident is usually second in command.
While the CEO focuses on the company's mission, vision, and strategy, the President is responsible for operations management. While the CEO prioritizes long-term goals, the President has a shorter-term perspective. They deal with day-to-day operations and logistics.
WHAT ARE THE PRESIDENT'S RESPONSIBILITIES?
The responsibilities of a President can vary depending on the size and makeup of the business. Presidents are usually responsible for logistics and operations. They also make sure the company's policies are being implemented correctly.
Other responsibilities include:
- Leading and guiding managers
- Implementing company strategy
- Providing recommendations and reporting feedback to the board of directors
- Handling budgeting and financing
WHEN IS IT TIME TO HIRE A PRESIDENT?
The best time to hire a President is when the company has grown large enough that the CEO can no longer handle every day-to-day, nitty-gritty problem that arises because there is already too much on their plate.
There may even be several people reporting to the President, such as several Vice Presidents, Directors, and General Managers.
HOW DOES A PRESIDENT BENEFIT THE COMPANY?
The best Presidents are highly motivated, excellent communicators and posses exceptional organizational skills. They provide strategic direction for both the short-term and the future of the business.
