What is a Managing Director and What Do They Do?
The Managing Director (MD) is the most senior management role in a company or division. With ultimate responsibility for the organisation’s performance, the Managing Director reports to the Chair and shareholders and leads the management team.
Primarily, the Managing Director is responsible for implementing company policy and changes to it. As the aims of business are focused towards growth, profits and increasing shareholder return, the MD must ensure the company’s strategy is geared towards this. It is often the role of the Managing Director to convene a Board of Directors and manage any communication between the Board and the Chairperson/shareholders.
On a secondary level, the Managing Director is also responsible for representing the company in public, at events or with the press. They will lead, coach and mentor other board members and support their professional development and work with them to identify operational performance measures. They will require an understanding of finance related issues to analyse company performance.
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· development and implementation of the company’s strategy
· leading and motivating a successful organisation
· effectively managing change at any given time
· understanding the Managing Director’s position alongside and compared to the aims and objectives of the Board
· successfully implementing company policy
· building and maintaining an effective management team
· assuming full accountability for the Board for all company operations
· maintaining a dialogue between shareholders and the Board
· staying in control of the company’s finances
· understanding good corporate governance
· separating the roles of the Chair and the Managing Director
· understanding the challenges of managing the strategic and operational responsibilities