A managing director holds a senior management position in a corporation.
A managing director is a top-level or executive position in a corporation. People in this position often work closely with or as the director of operations, who is responsible for overseeing the organization’s day-to-day operations. Responsibilities can be broad for this role, including oversight of finance, marketing or sales, human resources, technology and other management roles. Since this position is at the executive management level, the organizational structure often has several direct reports under the position.
The managing director is responsible for informing the CEO and CFO of the company’s marketing objectives.
Most executive-level positions create policies and work to improve an organization’s corporate governance. Tasks and activities often involve classified or company-specific information that other people – both inside and outside the company – do not have access to. The managing director is responsible for reporting to the CEO and financial offerings on the company’s progress. With these other people, the managing director will direct the company’s operations by selecting the operating sectors, creating new divisions or product mixes, creating marketing campaigns and taking corrective actions for internal and external problems.
Three common and overarching tasks for the managing director are planning, directing, and controlling a company’s resources. Planning activities are those that look at future changes in the business environment and how those changes will affect the company. The managing director will work closely with the finance department to ensure the company has the necessary funding for major operational changes, such as debt or equity-aligned financing or available capital available for these changes.
Directing activities include the specific tasks for moving resources across the organization to achieve predetermined goals and objectives. The managing director often breaks big goals down into smaller, more manageable projects. This creates an environment where it is easier to direct resources, and it also creates a staged environment where the company will direct more resources to one project at a time. This avoids overextending company resources and losing revenue on individual projects.
Control includes the tasks or activities in which a managing director measures the performance of the company’s projects and operations. Performance measurements are financial or operational, such as measuring return on equity or employee output. These control activities—when conducted frequently and early in a project’s lifecycle—help the managing director make changes to the company’s operations before things get out of hand and severely affect the company’s bottom line.