What is Chairman? Distinguishing Chairman, CEO and President

In business, leadership positions such as Chairman, CEO and President often cause confusion. So what is a Chairman? What makes the difference between important positions in the company? This article will 1C Vietnam clarify the roles and responsibilities of each of these positions in the organization as well as the necessary elements of an elite Chairman. Let's find out now!

1. What is Chairman?

Chairman is the head of the Board of Directors of an organization or corporation, representing shareholders and managing the activities of the Board of Directors. Chairman is also known as Chairman. This position is elected by the Board of Directors based on the organization's reputation, leadership capacity and experience in the industry. The role of the Chairman includes leadership, administration and management of the apparatus.

2. Duties of the Chairman in the organization

In the concept of what a Chairman is, it can be seen that this position plays important roles in directing and operating the organization to achieve strategic goals. Here are some common tasks a Chairman may undertake:

• Leadership and management: Chairman takes on a key role in the leadership team. This position will manage the organization's operations, propose strategic strategies and make key decisions, and monitor the progress of projects and business activities.
• Chairing meetings: Chairman often leads meetings of the board, board of directors and other agencies, ensuring meetings are held effectively and decisions are made with high persuasiveness.
• Representation and engagement: As the main representative of the organization, the Chairman builds and maintains important relationships with shareholders, members, employees as well as the community, promoting consensus and sustainable development. solid.
• Setting strategy and financial planning: Chairman participates in determining and implementing long-term strategy, and managing finances to ensure the stable development of the organization.
• Monitoring and evaluation: The Chairman ensures strict monitoring of the organization's activities, compliance with regulations and evaluation of the effectiveness of policies and strategies, thereby making appropriate and correct decisions. .

3. Necessary capabilities of an elite Chairman

So what makes an elite and powerful Chairman? Below are some necessary qualities of an organization leader:

• Leadership at strategic meetings: The Chairman needs to have good leadership ability in important meetings of the Board of Directors.
• Extensive understanding of the business: Chairman must clearly understand the culture, people and operating processes of the business.
• Ability to influence: A good chairman is someone who has the ability to engage and unite stakeholders.
• Strong and decisive personality: The leader needs to be decisive and strong to ensure the right decisions are made for the sustainable success of the organization.

4. Distinguish between Chairman, CEO and President positions

Chairman, CEO and President play important positions in the business. Each position has distinct roles and responsibilities within the organization, contributing to the development and implementation of the company's strategy. However, there are still some differences between these positions. Specifically:

5. Some frequently asked questions about the Chairman position

Below, 1C Vietnam will answer common questions surrounding the Chairman position, from strategic roles to authority and influence in the organization.

5.1 Is Chairman or CEO more powerful?

Chairman is the head of the Board of Directors and has greater strategic power than the CEO in the organization. The power of these two titles depends on the structure and scale of the business, as well as the agreements and regulations in legal documents.

• The Chairman often provides long-term strategy and direction while solving legal, financial and negotiation issues..
• The CEO is responsible for leading all daily operations of the business, including product/service decisions, business plans, marketing, recruitment and human resource management.

5.2 In what cases can the CEO replace the Chairman?

The CEO can replace the Chairman's title in the event the Chairman retires or decides to withdraw from his management role. However, this decision depends on the opinions of the Board of Directors and shareholders of the company. CEO replacing the Chairman position usually only happens in large-scale and complex businesses.

6. 1C:ERP solution supports the Chairman in overall business management

If a business is looking for a solution to support the President in overall corporate governance, they can refer to 1C:ERP - a resource planning solution for businesses. 1C:ERP is developed based on low-code technology, bringing convenience and flexibility, connecting departments/divisions together, thereby supporting Chairmen in comprehensive business management.

1C:ERP is a powerful tool to support business administrators thanks to its ability to improve management efficiency in operational areas such as commerce, services, and manufacturing, with the following important modules:

• Planning & budgeting
• CRM & Marketing
• Sales Manager
• Purchase manager
• Warehouse and delivery management
• Production manager
• Treasury Management
• Long-term asset management
• Business results and control

Flexibly applying the above modules in management, administrators and businesses can achieve the following benefits:

• Improve and optimize workflows, eliminating duplicate work and manual operations by connecting and managing operations across companies and departments.
• Supports making management reports on demand and in real time, without programming, helping to consolidate data between companies and departments.
• Improve product and service quality by synchronizing data across units, optimizing inventory, shipping policies and customer feedback.
• Protect commitment and enhance security through data encryption and strict decentralization, recording operation history to ensure transparency and information security.
• Optimize operating costs, control KPIs and employee performance, compatible with many IT software to support business digital transformation, increase investment efficiency.
• Plan and control business KPIs quickly to achieve financial goals and manage department performance within the business.

Understand clearly what the Chairman role is as well as the important role this position plays in helping businesses operate effectively and sustainably. With strategic responsibility and long-term vision, the Chairman not only ensures stability but also guides the development of the organization. 1C:ERP is proud to be the solution that accompanies Chairman in the process of shaping and developing a comprehensive business. Contact 1C Vietnam to learn more about this solution!