How to become a CEO
Are you dreaming of one day becoming a CEO? Find out more about the typical duties and required skills and education of this coveted position in our handy guide.
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As a company's chief executive officer (CEO), you're in charge of the entire operation. Becoming a CEO requires years of hard work and dedication, which help you build the experience needed to succeed. If you're interested in becoming a CEO, discover several ways to achieve your goal.
What is a CEO? What does a CEO do?
A CEO is generally the highest-ranking position that you can hold in a company. As the CEO, you're accountable for everything the company does, which means you get to take credit for the successes but are also held accountable for any shortcomings.
A typical CEO's duties include making major company-wide decisions, reporting to the board of directors, answering to shareholders, approving budgets and new initiatives, conducting high-level meetings, and leading the rest of the C-suite of executives.
What education do you need as a CEO?
Generally, there is no formal education requirement to become a CEO. However, many CEOs hold at least a bachelor's degree, often in business. According to a Forbes study from 2019, 53% of CEOs with degrees leading Fortune 100 companies held either a bachelor of arts or a bachelor of business administration.
Additionally, at some companies, CEOs possess degrees in their company's specific field. For example, Bob Iger, the CEO of The Walt Disney Corporation, has a BS in television and radio.
One reason business degrees are popular among CEOs is that these programs tend to teach many of the skills needed to become a successful business leader.
What skills does a CEO need?
CEO is a position with many responsibilities in many different areas, requiring a unique mix of skills. Below are some of the most important skills for a CEO to possess.
Leadership skills
As a company leader, you must have the skills to spearhead your team. Leadership is learned in two ways — through leadership training and via experience. Many CEOs work for a decade or more to sharpen their leadership capabilities before joining the C-suite.
Business management skills
Regardless of industry, a CEO needs to have the business management skills needed to understand the company's operations. These skills include accounting, business strategy, human resources, and risk management. Generally, these skills can be learned through courses, certifications, or executive leadership programs.
Communication skills
Communication may be one of the most important skills a good CEO has. CEOs may be required to communicate with the board of directors, shareholders, other members of the C-suite, competitors, the media, customers, and employees. Mastering communication and messaging starts with a proper education on the topics, followed by experience gained in the workforce.
Analytical skills
CEOs make major decisions that can affect a company's success or failure. To make these decisions, CEOs need to be able to analyze situations, data, deals, and options quickly and effectively. Mastering this involves not only learning how to conduct your own analysis but also learning how to build teams and assets that can assist you in getting the right information and guidance to work with.
Negotiation skills
As a CEO, you may be involved in high-stakes negotiations regarding purchases, mergers, acquisitions, employee policies, and other internal policies. A good CEO needs to have strong negotiation skills to be effective. To be an effective negotiator, you must have strong communication skills and the confidence to defend your position. Workers typically develop these skills on the job as they rise through the ranks of their companies to take on more senior roles with decision-making power.
Get started with online programs on edX
The road to becoming a CEO starts with having the right skills in your toolkit. To get started today, select an online edX program.