Fred Wilson [Archive.org URL]

I asked [an experienced board member] “what exactly does a CEO do?” He answered without thinking:

“A CEO does only three things. Sets the overall vision and strategy of the company and communicates it to all stakeholders. Recruits, hires, and retains the very best talent for the company. Makes sure there is always enough cash in the bank.”

I asked, “Is that it?” He replied that the CEO should delegate all other tasks to his or her team.

I’ve thought about that advice so often over the years. I evaluate CEOs on these three metrics all the time. I’ve learned that great CEOs can and often will do a lot more than these three things. And that is OK. But I have also learned that if you cannot do these three things well, you will not be a great CEO.

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