So you feel you need a C-level for your business. But (a) do you? and (b) what difference will they make?

Everyone knows that corporations and even large in-country companies have a C-level suite. Most will have a CEO, or perhaps refer to them as an MD; larger corporations will have a full C-level suite – CTO, CFO, COO and so on. In some smaller companies those roles may overlap, at least to a degree.

Then there are niche, start-up or family businesses. In many, if not most, cases, C-levels will be absent here. This begs the immediate question: if the overall construct of any 2 businesses is the same – to procure a product or service, manufacture or deliver that to the client, and count the revenue and costs, ensuring the profit is delivered – why do larger businesses have C-levels and smaller ones (generally) don’t? In itself this raises the question: if the desired end results are the same, what exactly does a C-level do?

C-levels’ aims, and the expected outcome from their management, are really quite straightforward:

• create value and understand they must do so in often very fluid and rapidly-changing markets
• meet the operational, revenue and profit demands of the organisation
• understand not only their own business’s market position but also that of their competitors and, crucially, anticipated customer trends or requirements. This can be every one of us individually – say with a fizzy drink –  or a global body of us, say with minerals or oil
• serve the board and the business’s employees. This last is vital. We often think of C-levels as “running the business”. It is also vital to bear in mind they would have no business to run if there weren’t staff and clients

There is however another aspect to the role of the C-level, one that many staff and middle managers find amorphous and vague and, hence, annoying. It is the often informal, behind-closed-doors collaborations, deals and agreements struck. To many of the workforce who never see this played out, the mention of it can elicit a “what does he (she) need to do that for?”…”why can’t they just make a decision?”…”must be nice to have an expenses-paid lunch”.

This response is wholly understandable but also largely unfair and based on assumption. It may be considered by many to be wrong or inappropriate that much business is done that way but the bottom line – pardon the pun! – is that it is. Many may find it distasteful but much of business at the highest level not only is, but often requires to be, carried out this way. So what is the C-level’s worth or importance here? Well, unpalatable it may be but they oil the wheels; they use long-developed networks and key contacts, usually global players, to develop strategy and direct the business by communicating with people at their corporate level: and this last is important to grasp. The employee who drives the cherry picker in the depot probably would have little if any understanding of the company’s global brand management; but the C-level would have absolutely no idea how to work the cherry picker. There are lots of C-level executives that will be willing to give the team an education but those worth their salt – or bonuses – need to have a basic fundamental understanding of how business works – and to know they need that.

So, the C-level is vital at the top and in the wider market but are they important to the shop floor (a most unfortunate term – it suggests a seniority <> inferiority setup, which it never should)? If they work correctly, yes. Why? Because they set the tone and shape of the business and build awareness of it amongst consumers – for better or worse. Take, for example, recent very negative public and media attention given to Amazon, Google and Starbucks about their tax affairs. How they were perceived when tax news was leaked was in the lap of the gods. But how that negative attention panned out over the coming weeks and months was driven by the C-levels: their comments, press statements, meetings with stakeholders – both the content of these but also the timing.

The C-level needs to understand the machinations not only of the business itself but also the business’s place within the economy. If they don’t, there is a distinct possibility the business could ultimately fail – think Northern Rock and, nearly, RBS. Life or death was in the hands of the C-levels and how – and how quickly – they responded to markets and consumers. At that point it becomes about the executives’ ability to build rapport. He or she doesn’t have the luxury of time to fish around for ideas that might indicate some dissatisfaction. They need to be on the ball with, at the very forefront of that in-the-immediate decision-making process, “if we (the suite) don’t get this right, not only will we fail but 5,000 people will lose their jobs”. They should understand not only are there complex decisions to be made but that the buck stops with them.

So do we need them? Are they expensive but vital, or simply expensive? Both. The bottom line here is: they need to have a vision for the business before they arrive, for how all senior and middle management tiers will direct the business, by understanding broadly how marketing, sales, product delivery, HR and so on, work. If they get that vision right and thereafter also prove themselves both flexible and highly adaptable – think John Lewis, the bellwether – and, when required, ruthless – think Tesco’s 2014 – 2016 cull – they will steer the business and ultimately improve ROI.

Do you need one for a start-up? Probably not – but think of someone running that start-up – as someone must. In effect they are the microcosm of the corporate C-level. They are the director and the glue and, if their business succeeds, tomorrow’s C-level

C-levels: your position is secure. Just remember never to abuse it by remembering who you ultimately work for.