Friday, May 07, 2010

CEO - not entirely an insider

My recent experience made me think through the role of a CEO in context of representative of inside of organization and outside. While CEO is an entirely internal role paid for by the organization to promote its private objectives, to that extent, its perfectly fine if this role always remain sided with internal interests; I have a feeling that a CEOs role has also to do with some commitments towards the outsiders. Lets dwell deeper in this.

Typically, if as a customer, you feel upset about the service of organization, you want to write to the CEO of the organization. As a vendor, if your payments get delayed, you connect with the CEO or as an ex-employee, if your final dues aren't coming in time, you do the same. SO in all these cases, if our first assumption about a CEO being a total insider was true, all these outsider actually would not hold any hope for favorable response from CEO's office, isn't it. Fact is that, most of the time, outsiders do get attended to their concerns by writing to CEOs. This also suggests that not just the outsiders consider a CEO as someone who'll hear them as a neutral party but even CEOs see themselves responsible for even outside interests in outsiders dealings with their organizations. Call it corporate governance, or fair play, or organization culture, whatever; role of CEO does seem to have an accountability towards outsiders in safeguarding their interests along with driving business interests of their payee organizations.

Do outsiders also expect some assurance from the CEO of the organization that they interact with? Are there some assumptions here, let me try to lists down a few, my own guess;

1. Outsiders expect CEOs to be people with high integrity to society at large, sure about value of their own product/ service and sincere towards their organizations dealings with outsiders.
2. They also expect CEOs to be by and large fair. Along with that , they also feel that CEO is capable of taking the risk of siding with outsiders if fairness demands as long as its not entirely against organization's interest.
3. They also believe that a CEO is fully capable of going extra mile, put extra authority, spend extra time in helping outsiders, if she thinks its fair to do so.

Now some of this might not be true or consistent across the fraternity, but by and large, whether written or not, CEOs do seem to have the responsibility of guarding outside interests of people who deal with their organizations.

I once met a senior lawyer, who told me that if he is working for me, he'll write documents that are fully one sided in my favor; I am sure people see CEOs differently.

Its a complex subject and I have just shared my opinion. More comments are welcome.