Team-building is the CEO's third duty. The CEO hires, fires and leads the senior management team. They in turn hire, fire and lead the rest of the organization.

The CEO must be able to hire and fire non-performers. They must resolve differences between senior team members and keep them working together in a common direction. They set direction by communicating the strategy and vision of where the company is going. Strategy sets a direction. With clear direction, the team can rally together and make it happen.