Executive Titles (or Roles) – Does it really matter?

15 Sep Executive Titles (or Roles) – Does it really matter?

When your company is a small start-up organization it may not matter if you are called the “owner” or “president” or “CEO” or even “Chief bottle washer” (I jest). However, with time and company growth the company title does make a difference. According to The Founder’s Dilemmas (Chapter 5) many founders insist “I don’t care about my official title” however they should. “Titles are imbued with a symbolic significance and can translate into real authority. Which co-founder receives which title- especially the CEO title – is usually one of the toughest early negotiations between co-founders, and rightly so because it is a very important one.”

The most pronounced example of this is highlighted in Apple Computer’s history.   Steve Jobs co-founded Apple with Steve Wozniak in the early 1970’s. In 1983, as Apple grew, they decided to hire John Sculley away from Pepsi in hopes that he could use his substantial marketing skills that helped Pepsi grow and apply them to the personal computer industry. By 1985 there was a battle of power between Sculley and Jobs. The Board of Directors ultimately sided with Sculley and Jobs was stripped of all duties. Jobs, while taking the position of Chairman of the firm had no influence over Apple’s direction and subsequently resigned [Steve Jobs by Walter Isaacson].

As you can see from this example, the job title was not only important, it also charted the fate of one of the largest success stories turned failure turned resurrected success story in US corporate history. So take heed, when determining your company’s structure. Be mindful about job titles of your key employees as they are being given proportionate power.