What is Executive Management Team Structure? To know more about these, just keep on reading the article until the end.
What is Executive Management Team Structure?
The Executive Management Team plays a significant role in the success of a company. Usually, the senior-most level executives of the organization constitute its executive management team.
The responsibilities and duties of the executive management team members differ from one organization to another. But, in general, it can be said that the executive management team is responsible for achieving the following objectives:
- Set goals and objectives for the company
- Provide strategic direction to the company
- Set up an effective structure to operate the company
- Identify long-term and short-term business strategies
- Make suitable decisions to achieve business goals
The primary job of the CEO is to ensure that necessary steps are taken by his/her respective teams. The CEO builds the organizational structure and determines the responsibilities of its departments. The CEO is responsible for the overall performance of the company. He/she is also responsible for the company’s profit and loss statement.
How to Structure an Executive Management Team?
The organizational structure of an executive management team should be designed to enable it to achieve its objectives. The following factors should be considered while designing the structure:
Size of the Team
The executive management team of a company should have less than ten members. This is because if it has more than ten members, it will get unwieldy to operate and take important decisions. Also, the time available with each team member will be reduced, which can affect the functioning of the team.
The Function of Each Team Member
The function of each member of the executive management team is vital for the smooth functioning of the team. Each member of the team should have a specific role in achieving its objectives. He/she should know his responsibility and should focus on it.
Skill Set of Each Team Member
Having a good mix of skills in an executive management team is important for achieving its objectives. People with various skillsets are required to achieve different objectives. For example, people with accounting skills are needed to maintain financial records, while people with marketing skills are required to promote products or services.
Level of Authority
While designing an executive management team structure, it is important to consider each individual’s level of authority. The members at different levels have different levels of authority to make decisions and take actions accordingly. The CEO has the highest level of authority and he/she can take any decision without consulting others while other team members at lower levels have less authority compared to that of CEO and they need to take approvals from higher authorities before taking any decision or making changes in company policies and procedures.
The above factors should be considered while designing the structure of an executive management team. An appropriate and efficient structure should be designed to achieve the objectives of the team and also to promote the efficiency of the team. A well-structured executive management team can help a company to achieve its business goals successfully.