How to appoint a managing director
Bringing in an effective managing director (MD) to run your
business will give you more time for strategic direction. Without
being bogged down with the day-to-day running of the company, you
can concentrate on developing sales leads or planning future
expansion. There will also be implications for you, the company and
employees. This guide outlines some things to consider.
- Direction of the business
- Internal options, obvious candidates
- Looking outside the business
- Equity, salary, financial
Direction of the business
Looking to expand into new markets isn't easy with the
day-to-day minutiae of the business to attend to. Or maybe sales
potential isn't being realised because you're too busy on
time-consuming human resources issues. Bringing in an MD can help
free you up. It might be that new markets are starting to open and
you want to take advantage in the medium term.
- Are you busy getting nowhere?
- Are you missing opportunities?
- Are there new markets you should be looking into?
Internal options, obvious candidates
Promoting a trusted senior manager to MD could be a business
masterstroke, as well as freeing up your time. It could produce a
renewed motivation within the business, especially if the knock-on
effect is other people being promoted. Elevating the sales director
to MD might give you the chance to bring in a new sales director
with specific expertise in a sector or country.
- Feel-good factor
- Chance to bring in new staff
- Free up time
Looking outside the business
Executive search firms are one method of finding a new MD. They
will either have relevant potential clients on their books or will
advertise on your behalf for a specific person. Costs vary and some
can be pricey, but you get what you pay for - plus you don't have
to wade through applications and interviews. Alternatively it might
be worth flicking through your contacts books and sounding out
industry colleagues - it will save you money and might mean you get
someone you already know.
- Executive search firms
- Your contacts book
- Industry colleagues
Looking outside the business
Attracting top staff will cost you. Not just the search but also
in terms of salary or the sort of remuneration package they will be
looking for. Offering equity, or a share in the business, can be
attractive but will obviously cost you. See what the going rate in
your sector is. Ask around. Speak to an employment agency.
- Equity
- Going rate
- Contact an employment agency
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