The need to navigate greater economic and political uncertainty, respond to heightened consumer demands, and address issues relating to social responsibility means the role of the CEO today is changing. As we see some of the most successful chief executives lead with a sophisticated understanding of our post-pandemic reality, we look at how the role is already transforming, and how CEOs need to adapt for the future.

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What is the traditional role of the CEO?

Traditionally, chief executive officers drive the strategic direction of a company within a hierarchical structure. Although historically, CEOs have served as the face of a company, they have carried out their duties with a relatively low-key public profile. The conventional CEO makes critical decisions for the future of a business, assesses risks, oversees operations, and ensures effective communication between all stakeholders to maximise profitability and performance. While this is also true of modern-day CEOs, the depth of the role has changed significantly in recent years.

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How is the CEO role changing?

The pandemic has brought change like we have never known, and in its aftermath, we face an age of expected uncertainty and a new level of technological advancement. For the CEO, these developments signal a move away from the traditional role, to one with more diverse responsibilities.

Social responsibility

Today, customers, prospective employees, and other businesses take time to research a company’s approach to societal issues. The environment, ethical practices, and diversity are important matters affecting a stakeholder’s level of engagement with a company today. The onus is therefore on the CEO to develop corporate social responsibility (CSR) strategies to glean trust and loyalty. Taking on the responsibility of supporting community and wider societal issues shows employees the kind of company they belong to. This further supports the CEO in attracting new talent, and engaging and retaining existing employees to improve productivity and, in turn, profitability.


Technological awareness

The rise in adoption of Industry 4.0 technologies such as cloud computing, AI, automation, and big data has led to significant benefits for businesses. From improved supply chain efficiency and enhanced market intelligence, to increased productivity and flexibility, companies now have the tech tools for high operational efficiency. For the CEO, this means there’s a new responsibility to stay aware of emerging technologies to improve operations and spot new technology trends. A new awareness allows CEOs to identify specific tech-related threats and delegate tasks and roles more wisely for better overall performance.


Social media

Reputation management is nothing new to C-suite executives, but the era of issuing a press statement to quell a crisis or promote a new service has gone. A company’s public perception is now more keenly managed with the addition of social media. Also, customers have come to expect swift responses to events, and the communication of opinions on relevant topics from CEOs. Company developments, good and bad, are communicated instantly and globally, serving both as an opportunity and a threat, and therefore a new responsibility to manage. CEOs today also know that their personal social media activity has become a powerful asset in upholding the reputation of their business.

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What does this mean for the future of the CEO role?

Moving forward, we are likely to see fundamental shifts in the role, including the following:

  • CEOs becoming more vocal on relevant people, planet and business issues and causes, and communicating what actions are being taken

  • Leaders working to bring about greater diversity in organisations to ensure inclusion and ultimately help improve profitability

  • CEOs becoming more adept at managing disruption, anticipating change and seizing new opportunities from within it

  • The adoption of an integrated strategic approach, encompassing not just their own organisations but other interconnected businesses within their ecosystems

  • A more ‘human’ and authentic communication style on social media and other communication channels

  • The remuneration of a CEO is likely to become more transparent to satisfy more discerning shareholders, but there will remain a big focus on the importance of attracting and rewarding talented CEOs

How can CEOs adapt to these new developments?

Whether you are an existing CEO or considering your first CEO role, it’s important to be continually aware of technological and societal developments. One way CEOs are already adapting is by surrounding themselves with an informed team, each with specific expertise. New roles we are seeing supporting CEOs include:

  • Chief Robotics Officer

  • Chief Automation Officer

  • Chief Data and Privacy Officer

  • Customer Relationship Officer

  • Chief Diversity Officer

  • Chief Growth Officer

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By changing their mindset to act more as an ambassador and represent their brand, CEOs can create a thriving and positive company culture. They must communicate authentically to gain trust, demonstrate what they are doing to achieve greater diversity, and show how they are embracing change. Although implementing new technology will be critical for the future of organisations, CEOs must also factor in the human element by continuing to develop talented employees responsible for executing their new strategies.

As we learned during the height of the pandemic, organisations are capable of effecting huge change. This has placed companies at the point of no return in terms of what we now expect from a CEO and how the world perceives the role. Coupled with this, political and economic volatility, along with unrelenting technological developments are set to continue meaning the CEO role must evolve to flourish, and indeed, survive.

If you or your business is looking for a new CEO role or would like to know more about the new skills required of CEOs today, please speak to Tom Granger or learn more about our Board capability. 

Where to next?

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