What is a Managing Director?
Briefly put, a Managing Director position is a role where the individual is in charge of the company’s operations as well as its strategy for the future. The hope is, that under the guidance of a competent management director, that the profits and productivity of a company are as good as they can be in the present, but that with the right strategy the future will also see an even more productive and profitable company.
Most business owners or shareholders like to see growth in a company as well as excellent return on investment. Managing directors’ performance is therefore closely aligned with profits and growth of those profits. A Managing Director’s role is very similar to the position of a CEO and often the use of the title is simply down to personal preference at a company.
What does a Managing Director do?
A competent Managing Director will guide a company through its day to day operations but also prepare a corporate plan or annual business plan for the company to stick to as well. Doing so means that the Managing Director can make improvements and enhancements to a firm to make them more cost effective and efficient. A good Managing Director will also often lead a management team that he or she can delegate their requests to.
They also will be responsible for the external communication of the company. In short, they may well often be the face of the company and be the one to make key announcements for the firm.
Advantages of a Managing Director
The advantages of having a competent and effective Managing Director is that ultimately that person knows how to guide the company through difficulties to be a far better business. It means that that business will create more value - be that profit or hitting other targets that a company may wish to achieve.
Having a Managing Director allows a company to hire a person who has the best skills to help a firm achieve its goals and become the strongest company out of its peers. A Managing Director is also important to a company as it allows others to concentrate on more specific areas of the business without having to worry about the wider commercial issues that are occuring at the time.
Contractbook and a Managing Director role
At Contractbook, we deal a lot in employment contracts. It is in those contracts that the responsibilities of a potential employee should be outlined. None more so than a Managing Director position. It will detail what the Managing Director salary will be for that particular company, but also what is expected of him or her. Importantly, for both sides, it will also explore clearly what will result in a breach of contract and what repercussions a breach of contract will trigger. I.e. a contract will stipulate how a Managing Director can get fired if his or her performance is not up to scratch.