Commercial Director - This is a person who, through his actions, mobilizes, controls and directs the company's staff to maximize profits. Depending on the direction of activity of a production or trade organization, the requirements for the qualities and abilities of a candidate for this position and the functional duties of the commercial director of the enterprise may differ slightly.
The role and main tasks of the commercial director
Despite the significance of this figure in the enterprise management system, its responsibilities and functions are not always clear. Most often people from the procurement department apply for this position. Who, if not a sales manager, knows the specifics of communicating with customers, has experience in concluding contracts, understands the features of his organization.
In general terms, the duties of the commercial director of an LLC are as follows:
- long-term and short-term profit planning;
- effective management and control over the implementation of current tasks by the sales department;
- providing information;
- setting goals for all departments of the enterprise;
- control of directors of divisions;
- determination of the marketing policy of the organization;
- communication with key customers;
- interaction with shareholders and partners;
- control over the fulfillment of obligations and agreements of their enterprise related to entrepreneurial activity;
- coordination of the work of units.
Depending on the direction of activity of a particular enterprise, the above list may be supplemented or reduced. In any case, the applicant for this position must have a certain set of qualities.
Characteristic qualities of the candidate
Responsibilities and the peculiarity of the place occupied in the organization require from a specialist not only the ability to focus on the result. The ability to make decisions in a difficult situation, the ability to manage conflicts, stress tolerance and loyalty, responsibility and honesty, creativity and the ability to defend one’s own opinion must be possessed by a professional division head. Especially these skills are needed by top managers of trading companies.
One of the important qualities is the presence of charisma, leadership abilities. The commercial director, whose duties are specifically specified in the contract of employment, must be able to captivate the team of employees, stimulate people to work actively. Experienced personnel officers recommend taking a professionally mature person, over the age of 30 years, for this position. Such a specialist, making informed decisions, will be able to guide and train his subordinates and employees of related departments, to lead them in the direction necessary for the company.
A candidate for this vacancy must have and understand his own goals and objectives of the enterprise, among which the main one is regular profit making. A person must have a high level of responsibility and breadth of thinking, because his position is connected with the coordination of the work of all leading departments, with the control of the movement of cash receipts.
And, of course, this specialist simply cannot be not proactive, not sociable, irresponsible and not single-minded.
Responsibility for finance and economics of a trading company
In many organizations, the duties of the commercial director of the enterprise overlap with the functions of the financial director. Both of these specialists plan, direct and inspect the procurement, marketing and financial activities of the company. Any decisions and actions of the commercial director should have economic feasibility, be aimed at making a profit both at the moment and in the future.
Being in fact the first deputy chief executive of the organization literally with his “right hand, eyes and ears”, the head of the procurement department must work closely with the management. The sales director, whose responsibilities may vary slightly from company to company, is directly subordinate to the business owner or general manager. The position of this top manager is relevant for companies that produce and sell large quantities of goods.
At large-scale enterprises, the commercial director is entrusted with resolving global issues related to the constant increase and improvement of financial indicators, and the development of activities aimed at this.
Commercial Director: duties and responsibilities in a trading company
The main business of this employee in this case is the promotion of the brand and goods of the enterprise on the market in order to make a profit. To achieve these goals, work is organized in several directions:
- definition and construction of marketing policies;
- control over receivables;
- formation of procurement and sales plans, supervision of their implementation;
- selection and training of a trading team;
- creation of a motivation system and certification of managers;
- sales process inspection;
- monitoring customer requests.
The duties of the commercial director of a trading company additionally include planning and managing an assortment policy, knowledge of logistics and the basics of product distribution, interacting with key customers important to the enterprise, and participating in negotiations responsible for organizing the company.
Analysis of sales across the entire product line, profit and turnover for each position, seasonality and stability of income, functions of a leading merchandiser - all this is controlled by the commercial director. Job responsibilities may vary slightly, depending on the specific profile of the company, but the main activity is aimed at consolidating the company's position in the market and increasing revenue.
Who is subordinate?
Realizing the general strategy of his enterprise, the commercial director, whose responsibilities are stipulated in the contract for employment, coordinates and directs the work of several departments. Among them:
- in fact, the commercial department;
- marketers
- sales managers;
- purchase department;
- logisticians.
The commercial director, whose job responsibilities prescribe to control and direct the activities of these units, provides them with relevant information for productive work. And also this top manager is a kind of mentor for new employees.
Commercial Director Rights
The advantage of the deputy chief executive is his right to represent the interests of the company at meetings with customers, to negotiate. The top manager of this position has the right to demand and receive from ordinary employees, heads of related departments information and documents related to the commercial activities of the company. The commercial director has the privilege to participate in the preparation and preparation of instructions and orders, contracts and estimates aimed at generating income for the enterprise. By issuing orders, the commercial director is competent to endorse and sign company documents related to trade issues.
By checking the activities of his own department, he, as the head, has the opportunity to stimulate and punish his subordinates in order to increase the efficiency of their activities, developing and applying various motivation systems.
A person in this position has the right to make proposals to the Director General on bringing to disciplinary and material liability managers and employees of related departments (based on the results of inspections).
Tasks of paramount importance
A necessary part of the work of a commercial director is to improve the staff through the training of employees. He organizes and sometimes conducts lectures, training events, explains the strategy and mission of the enterprise.
In a company specializing in trade, he is negotiating with partners who supply products.
Since without advertising “only the mint can make money”, the commercial director needs to organize the right marketing policy, devoting enough time to this direction.
One of the primary tasks of the commercial director is to take measures to reduce the costs of the enterprise. This need appears after the company has achieved a high level of profit indicators.
Which companies do not need a position of commercial director?
Large enterprises, which are practically monopolists in their field, may well do without this personnel position. Their services or products do not need advertising or promotion due to their specificity. A commercial director whose duties are to globally promote a company’s brand in a competitive market is completely superfluous in this case.
A small enterprise may well have enough ordinary sales managers. This applies to both industries and companies engaged exclusively in trading operations.
Where to find an effective and efficient employee?
Unfortunately, commercial block managers are not trained in educational institutions. Moreover, education is not the main factor and indicator of high professionalism. The main thing is not having a diploma, but having the necessary qualities, skills and competencies. In addition to professional knowledge of computer programs, a candidate for the position must have experience in promoting various products, know the psychology of customers, understand the device and the specifics of the sales mechanism.
Sometimes a specialist who leaves the ranks of simple managers can do more good for a company than an employee hired from outside. The main thing is that the candidate possesses managerial skills and shows results on increasing profits. After all, the commercial director is not an executor, but an organizer and manager.
