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What Are The Duties Of The Chief Executive Officer (CEO)? POSDCoRB

Posted on June 4, 2025June 25, 2025 by Brian Colwell

In the complex world of corporate leadership, few positions carry as much weight—or as much mystery—as that of the Chief Executive Officer. While we often hear about CEOs making headlines for major acquisitions, product launches, or quarterly earnings, the day-to-day responsibilities of these top executives remain less understood. What exactly does a CEO do beyond the boardroom presentations and media appearances?

Nearly a century ago, management theorists Luther Gulick and Lyndall Urwick attempted to answer this very question by distilling executive leadership into its essential components. Their framework, captured in the memorable acronym POSDCoRB, has stood the test of time as a comprehensive guide to understanding the multifaceted nature of executive management. Despite the dramatic changes in business since the 1930s—from globalization to digital transformation—these seven core functions continue to define what it means to lead at the highest level of an organization.

In this post, we’ll explore each element of the POSDCoRB framework and examine how these timeless principles apply to modern CEO responsibilities. Whether you’re an aspiring executive, a business student, or simply curious about what occupies the corner office, understanding these fundamental duties provides invaluable insight into the engine that drives organizational success.

What Is “POSDCoRB”?

The role of a Chief Executive Officer (CEO) is to serve as the highest-ranking executive in a company, with responsibility for making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and corporate operations.

According to Gulick & Urwick in ‘Papers On The Science Of Administration’, the activities of the chief executive in an any organization can be summed as the acronym “POSDCoRB,” or: Planning, Organizing, Staffing, Directing, Co-ordinating, Reporting, Budgeting. This acronym has since been expanded to refer to the activities and duties of administrative management in its entirety.

P – Planning

  • Working out in broad outline the things that need to be done and the methods for doing them to accomplish the purpose set for the enterprise
  • Developing and implementing high-level strategies
  • Identifying and managing potential risks to the company

O – Organizing

  • Establishing the formal structure of authority through which work subdivisions are arranged, defined, and coordinated for the defined objective
  • Allocating resources efficiently to achieve company goals

S – Staffing

  • Bringing in and training personnel
  • Evaluating the performance of other executives
  • Maintaining favorable conditions of work and a positive company culture

D – Directing

  • Making decisions and embodying them in specific and general orders and instructions
  • Serving as the leader of the enterprise – setting the vision and direction for the company
  • Leading the executive team and providing to them guidance as needed

Co – Coordinating

  • Interrelating the various part of the work
  • Ensuring compliance with laws and regulations
  • Acting as the face of the company in public and media relations

R – Reporting

  • Keeping those to whom the executive is responsible informed as to what is going on, which thus includes keeping himself and his subordinates informed through records, research, and inspection
  • Communicating effectively with stakeholders, including the board, employees, and shareholders

B – Budgeting

  • Fiscal planning, accounting, and control
  • Overseeing the company’s financial performance
  • Overseeing major capital investments and expenditures
  • Ensuring the company meets its financial goals
According to Gulick & Urwick, the activities of the chief executive in any organization can be summed as the acronym “POSDCoRB,” or: Planning, Organizing, Staffing, Directing, Co-ordinating, Reporting, Budgeting. This acronym has since been expanded to refer to the activities and duties of administrative management in its entirety.

The point of the above is to “organize and institutionalize the executive function as such so that it may be more adequate in a complicated situation”, according to Gulick & Urwick, and we can use POSDCORB as the fundamental tasks of leaders in a corporate hierarchy – placing individuals in each specific role as the organization grows.

Final Thoughts

The POSDCoRB framework, despite being developed nearly a century ago, remains remarkably relevant for understanding the multifaceted nature of executive leadership. While modern CEOs face challenges Gulick and Urwick could never have imagined—from digital transformation to global supply chain disruptions—the fundamental responsibilities captured in this acronym endure.

What makes POSDCoRB particularly valuable is its comprehensiveness. It reminds us that effective leadership isn’t just about vision and strategy (though these are crucial), but also about the less glamorous yet equally vital tasks of coordination, cooperation, reporting, and budgeting. The framework serves as a practical checklist for executives to ensure they’re not neglecting any critical aspect of their role.

As organizations continue to evolve and grow more complex, the need to “organize and institutionalize the executive function” becomes even more pressing. Whether you’re a seasoned CEO, an aspiring executive, or simply someone interested in understanding organizational leadership, POSDCoRB provides a timeless foundation for thinking about what it truly means to lead at the highest level.

The beauty of this framework lies not just in its simplicity, but in its scalability—these same principles can guide a startup founder managing a team of five or a Fortune 500 CEO overseeing thousands. In an era of constant change, having such enduring principles to anchor executive practice proves invaluable.

Thanks for reading!

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