Have you ever wondered who was responsible for making all the Executive Healthcare Decisions in a healthcare organization? Like any other organization, a healthcare organization is usually run by top management executives. There are different types of executives and they perform different functions in an organization. Let’s discuss them below
The Chief Executive Officer makes Executive Healthcare Decisions
The chief executive officer commonly referred to as the CEO or the President is the top executive in a company. The CEO is the head and is in charge of the entire company. In small organizations of medium-sized ones, the CEO is usually the owner of the company. The CEO usually knows the most about running the organization and is also usually skilled at leadership and management techniques. The CEO is also the head of the executive team and delegates specific functions to them. The chief executive officer is the face of the organization and is responsible for representing the company in good light to the public. The chief executive officer is also responsible for setting the big-picture strategic objectives of the company and delegating. A chief executive officer should have good experience and education and should also have good management skills.
The Chief Operating Officer
The next in command after the chief executive officer is the chief operating officer also called the COO. The difference between the CEO and the COO is the chief operating officer is more involved in the day to day hands-on operating of the company. The COO approves and audits departmental budgets and operating plans, and makes suggestions on how best to run the day to day activities of the firm. Another difference between a CEO and a COO might have little or no product knowledge because his duties are to run the company, not increase market share or sales. Increasingarearket share and sales are the concern of the CEO.
The Chief Financial Officer
The chief financial officer or CFO as the name implies is responsible for the finances of an organization. They are in charge of the fiscal operations and they set budgets, approve expenses, analyze profit margins and the price of good or services the company offers etc. They also oversee issues like taxes, investment, bookkeeping, and accounting. The make annual or quarterly financial projections and put financial data in a format that other members of the company can understand. A CFO usually has to have a financial degree or financial accounting and investment or economics degrees. A Business degree also helps. Most CFOs also have financial and accounting certifications
There can be more than one vice president in a company. The vice presidents are usually also department heads or at least heads of major departments. So you can have vice president of accounting, vice president of operations, vice president advertising, vice president of customer affairs etc. Sometimes vice presidents are also called directors or chiefs. It’s all lingo and means the same thing so you could have a director of advertising or a chief marketing officer etc
An executive director usually is the head of the board of directors and in some cases, also the head of the company. Executive directors are more common in non-profit organizations or NGOs. They perform the same duties as a CEO or company president but they have to get approval from the board of directors. Not approval for every day running of the company but rather an approval for large projects or projects that require lots of financing. Basically, they make decisions but have to run some high-level or high-stakes activities through the board.
Roles and Responsibilities of the CEO
Other functions of the CEO include
- Developing short and long-term strategies, mission and vision of the company
- Communicating with shareholders, the press, the public, and government organizations on behalf of the company
- Assessing, monitoring and mitigating risks in the company
- Evaluating the work of other executive leaders within the company, including directors, CFO, CIO, COO vice presidents, and presidents
- Maintaining awareness of the competitive market landscape, expansion opportunities, industry developments, etc.
- Ensuring that the company maintains high social responsibility wherever it does business
- Assessing risks to the company and ensuring they are monitored and minimized
- Setting strategic goals and making sure they are measurable and describable
- Industry-specific tracking to make sure the company stays relevant
The Role of the CEO In Ensuring Liquidity
Though the chief financial officer manages the finances of a firm, it is the responsibility of the Chief Executive Officer to ensure that the company stays liquid. The CEO has to go out and seek capital either through investment by equity, depth financing, or a combination of both. The CEO has to ensure that the is enough operating capital in the company courses and that the profit margin is sustainable. The CEO must ensure there is money to purchase inventory and also that the inventory is not tied down. The CEO must manage investments and handle other liquidity-related decisions.