C-suite (Chief Suite), often referred to as C-level (Chief Level), is a term used to describe top executives in a company that are responsible for making the most important decisions. In simpler words, it refers to senior executives in companies that use “Chief” in their job titles. For example, CEO (Chief Executive Officer), CMO (Chief Marketing Officer), CFO (Chief Financial Officer), etc.
So, what is C-Suite? In this article, we will talk about the C-suite roles, discuss their responsibilities, and explain how hiring the C-suite can bring benefits to your business.
Table of Contents
Understanding the corporate hierarchy
While C-Suite meaning is quite clear, it can’t be said about an hierarchical structure to which C-Suite belongs. So, where does C-Suite fit in this hierarchy?
The corporate hierarchy unfurls the next way:
- C-Suite (Chiefs)
- V-Suite (Vice-Presidents)
- D-Suite (Directors)
As you can see, the C-suite is the highest level of executives in a company. While directors are responsible for ruling specific departments, Vice-Presidents lead specific areas (HR, marketing, and others), chief executives take responsibility for the whole suite.
C-Suite leaders. What are their responsibilities?
As we have already mentioned, C-suite are top managers who are responsible for making strategic decisions that have direct influence on the company’s success. Nowadays, most large companies have executives with “chief” in their job titles. In this part, we will explain the main responsibilities of C-Suite executives.
Setting direction. C-Suite leaders are responsible for defining the company’s path, goals, and long-term direction. The responsibility for the company’s vision in the future lies on their shoulders.
Making critical decisions. All decisions regarding partnership, investments and changes are made by C-suite executives.
Team management. C-Suite management is a tough task. Managers are not only responsible for leading the team, but also responsible for composing a high-performance team and for maintaining the right atmosphere in this team.
Interaction with stakeholders. C-Suite executives are responsible for maintaining relationships with people who are interested in the company’s or project’s success. These people can be partners, shareholders, and others. C-Suite leaders have to build and maintain relationships with these stakeholders.
Risk management. Any company faces risks, in one period or another. They can be caused by internal or external factors. C-Suite leaders are responsible for identifying, mitigating, or eliminating the risks that can cause damage to the company or its reputation.
It also should be noted that the responsibilities of each C-Suite leader can vary depending on the company, its size, and goals.
C-Suite challenges and how to deal with them
In this part, we will explore the top challenges that C-level executives have to face.
- Keeping balance
It’s hard to make strategic decisions, especially in a rapidly changing business environment. Keeping balance between the company’s goals and fluctuating marketing conditions can be a tough challenge. However, top managers with strategic thinking can ensure stable growth of the company regarding instabilities that can come from both external and internal influences.
- Keeping up with innovations
Nowadays, innovations have become something stable; they appear in almost every industry and keep affecting both small and large businesses. That is why it became critical for chief officers to be able to adapt to these innovations. However, investments in research give the possibility to predict future trends and innovations which makes it easier to adapt to them. It’s also important to encourage constant learning and self-development within the company.
- Planning and management
Everything that is related to planning and management is always difficult; C-Suite executives need to develop smooth plans that will ensure long-term success of the company, build leadership pipiles, manage workers, etc. Nevertheless, it should be noted that experienced leaders deal with management and planning very successfully.
- Dealing with risks
There are a lot of risk types: financial, reputational, legal, and many more. Identifying and managing them is a large challenge for C-executives. Establishing an effective and stable risk management process that typically involves a risk identification, assessment, and mitigation plan, is the best way to deal with the major part of risks.
- Globalization
Globalization is an unstoppable process and it requires some significant effort to adapt to it. It encompasses international relationships and geopolitical challenges. That is why it’s very important to stay aware of global trends and changing consumer preferences. In some cases, it is even worth investing in employees’ cultural intelligence training.
- Stakeholder management
Stakeholders are people who play a very important role in the company’s success. It’s vital for C-Suite executives to keep transparent communication with them and prioritize their expectations and their vision when setting goals.
Skills C-Suite leaders should have
For sure, each C-Suite leader has its own responsibilities and duties. However, it’s fair to say that all specialists at C-level should posses the same skills:
Leadership. This is the main skill that sets a C-Suite executive apart from other workers. This individual always leads a group of people, has to motivate them, set goals and direction, so having strong leadership qualities is a must.
Communication. A C-Suite leader always has to communicate with other people a lot (employees, stakeholders, investors, etc.), so this professional should have high-level communication skills.
Adaptability. There are a lot of changing situations that can influence the company’s success in both positive and negative ways (market trends, industry dynamics, appearance of new innovative technologies, etc.). C-level executive has to be able to adapt to them.
Flexibility. Leadership requires being flexible, open-minded, and being ready for changes. It’s important for effective problem-solving and collaboration with different teams and people.
Emotional intelligence. The ability to manage his/her own emotions and the emotions of others in difficult and ambiguous situations is the characteristic that sets a C-Suite leader apart from others.
Of course, such skills are gained with time and experience. They are extremely valuable and important for C-Suite managers.
C-Suite roles
As usual, when you think about C-Suite, only one abbreviation comes to mind: CEO. However, there are many important C-Suite roles that are an important part of a company’s governance. In this part, we will share more about the key C-Suite roles.
Chief Executive Officer (CEO)
Let’s start from the basics. Chief Executive Officer, or CEO, is not of the C-Suite piramid. This person is responsible for managing other C-Suite members and serves as the main company’s representative, that is – its face.
Chief Financial Officer (CFO)
Just as it can be easily guessed from the name, CFO, or Chief Financial Officer, is the main person responsible for managing a company’s finances. The main task of this person is to make decisions that will ensure financial stability and success of the company. This involves financial planning, risk management, etc.
Chief Marketing Officer (CMO)
The CMO takes a leading role in everything related to marketing. This C-level leader is responsible for creating comprehensive marketing strategies, managing promotional activities, etc.
Chief Operating Officer (COO)
In simple words, the COO (sometimes referred to as Chief Human Resources Officer (CHRO)) is a C-level HR-specialist who is responsible for managing human resources. Mainly, they focus on recruiting and training.
Chief Technology Officer (CTO)
The CTO (sometimes referred to as Chief Information Officer (CIO)) is an executive who is responsible for managing all the technology-related causes within the company. This individual defines the technology-related strategies and needs of the company.
Of course, there are many more C-Suite roles, and we have named only a few of them. This list also includes chief compliance officer, chief green officer, chief information security officer, chief experience officer, chief data officer, chief analytics officer, chief data officer, chief legal officer, chief risk officer, chief product officer, chief learning officer, chief knowledge officer, chief strategy officer, chief privacy officer, etc.
To sum up, it should be mentioned that all C-Suite executives that we mentioned above work closely together to ensure the company’s success and prosperity. For example, a CFO can’t make strategic financial decisions without communicating them to the CEO.
C-Suite leaders salaries
As per information, given by Salary.com, we can talk about such median annual salaries of C-level executives:
- Chief Executive Officer (CEO): $754,713
- Chief Operating Officer (COO): $457,468
- Chief Financial Officer (CFO): $363,559
As you can see, the highest paid position at C-level is taken by the CEO.
What is C-Suite in business? Summing up
Having a C-Suite means bringing a high-level expertise to your company who can set the right direction. There are
In general, C-suite are top managers of the company that work together to ensure that company stays true to its goals. There are a lot of risks and challenges associated with C-level positions. Each C-Suite executive is focused on his/her own goals and responsibilities. At the same time, they all work together as a team.