Managing Director Job Description & Profile

Job Description for Managing Director

Managing directors are the most senior corporate executives at a company. They are responsible for executing the company’s overall vision and strategic plan. Every company employee is eventually answerable to the managing director, and the managing director, in turn, is responsible to the board of directors and the shareholders.

The managing director oversees all daily activities of the company as well as the planning of strategic ventures, acquisitions, major capital expenditures, and top hiring decisions, ensuring governance and compliance, and is ultimately responsible for every major decision affecting the company. Please note that the terminology sometimes differs from one country to another, and the title of managing director might mean something different in a different country. For a brief explanation of the terminology, please follow the article on qualifications.

Managing Director Responsibilities

The primary responsibilities of managing directors are as follows:

First and foremost, the managing director is responsible for charting the company’s overall goals by defining the organisation’s vision, mission, and objectives. These goals have to be in line with the expectation of the board and shareholders.

The managing director must also advise the chairperson and other board members about significant events and statistics about the company. This is a legally mandatory requirement as the board has to be aware of what is happening in the company to protect shareholders’ interests and perform their governance duties.

Managing directors, in partnership with other management executives, prepare and implement business plans to achieve the specific aims of the organisation. This can involve introducing a new product, entering a new market, expanding into a new area, strategic acquisitions, opening a new production facility, purchasing critical corporate assets, etc.

Preparing company policies and legal guidelines is also the ultimate responsibility of the managing director. In addition to preparing these policies, the managing director is ultimately responsible for ensuring these guidelines are followed. Many other experienced executives assist the managing director, but the ultimate strategic responsibility falls to the managing director.

Investor/ key stakeholder management is another critical responsibility of the managing director. The managing director has to communicate with shareholders and their appointed directors and keep them informed of how the business is running. In addition to shareholders, other critical stakeholders like significant business partners, major creditors, bondholders, regulators, etc., also have a right to be informed about the business by the managing director.

The managing director is also ultimately responsible for the company’s cash position. The finance department and CFO assist with managing money and capital resources, but the buck finally stops with the managing director.

The managing director also takes the decisions about hiring key management personnel. The MD also determines the overall HR policies in consultation with other executives and the head of HR.

Lastly, the most critical job of a managing director is to provide leadership and vision to the company. The managing director has to ensure that the business is an excellent corporate citizen, that stakeholder interests are protected, that the employees are happy and well looked after and that the company is healthy, strong and prepared to face the future. These are the things that distinguish an average managing director from a great one.

The Daily Routine of a Managing Director

Managing directors spend most of their time interacting with other company employees or external stakeholders. This includes meetings to discuss business plans or day-to-day business operations, updating stakeholders about various issues regarding the business and providing guidance to other executives and departments.

The time executives spend communicating increases with seniority, and at the managing director level, communication takes up almost all of the time. Managing directors are usually assisted by a personal staff who helps them manage their busy schedules and plan their routines.

Learn more about what a Managing Director earns and how to become one by following the below links:

Salary & Pay, Qualifications, Skills & Requirements, CV Template & Examples, How to Become, etc.

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See also Operations Manager Job Description & Profile here