Strategic Business Unit Leader vs. Vice President

Attribute	Strategic Business Unit Leader	Vice President
Position in hierarchy	Reports to Vice President	Reports to CEO or Board of Directors
Scope of responsibility	Responsible for a specific business unit	Responsible for multiple business units or departments
Decision-making authority	May have limited decision-making authority	Has significant decision-making authority
Focus	Focuses on operational management of a specific unit	Focuses on overall strategic direction and performance of the organization
Experience	Typically has experience in a specific industry or function	Often has broad experience across multiple industries or functions

Responsibilities

Strategic Business Unit (SBU) Leaders are responsible for overseeing a specific division or unit within a company. They are tasked with developing and implementing strategies to achieve the unit's goals and objectives. This includes managing the unit's budget, resources, and personnel. SBUs are typically smaller than the overall company, so SBU Leaders have a more focused scope of responsibility.

Vice Presidents, on the other hand, are typically higher up in the organizational hierarchy and have broader responsibilities. They are often in charge of multiple departments or divisions within a company. Vice Presidents are responsible for setting overall strategic direction, making key decisions, and ensuring that the company meets its financial and operational goals.

Decision-Making Authority

SBU Leaders have decision-making authority within their specific unit. They have the autonomy to make decisions related to their unit's operations, budget, and strategy. However, major decisions that impact the entire company may still need to be approved by higher-level executives.

Vice Presidents, on the other hand, have more authority and decision-making power. They are often part of the executive team and play a key role in shaping the company's overall strategy. Vice Presidents have the authority to make decisions that impact the entire organization and are responsible for driving the company's success.

Reporting Structure

SBU Leaders typically report to a higher-level executive, such as a Vice President or Chief Operating Officer. They are responsible for keeping their superiors informed about the performance of their unit and seeking approval for major decisions. SBU Leaders may also have direct reports within their unit that they are responsible for managing.

Vice Presidents, on the other hand, often report directly to the CEO or President of the company. They are part of the executive leadership team and play a key role in shaping the company's overall strategy and direction. Vice Presidents may have SBU Leaders reporting to them, as well as other department heads and managers.

Skills and Qualifications

Successful SBU Leaders typically have strong leadership and strategic planning skills. They must be able to develop and execute strategies to achieve their unit's goals, as well as manage budgets and resources effectively. SBU Leaders also need strong communication and interpersonal skills to work effectively with their team and other stakeholders.

Vice Presidents, on the other hand, require a broader set of skills and qualifications. In addition to strong leadership and strategic planning skills, Vice Presidents must have a deep understanding of the company's industry, market trends, and competitive landscape. They also need excellent decision-making and problem-solving abilities, as well as the ability to lead and inspire a large team.

Salary and Compensation

The salary and compensation for SBU Leaders can vary depending on the size and industry of the company, as well as the level of responsibility of the specific unit. In general, SBU Leaders can expect to earn a competitive salary, along with bonuses or incentives based on the performance of their unit.

Vice Presidents, on the other hand, typically earn a higher salary and more lucrative compensation package than SBU Leaders. Vice Presidents are part of the executive leadership team and play a key role in driving the company's success, so they are often rewarded with higher salaries, bonuses, and other incentives.