The commercial director is one of the first persons in any large organization. We can say that this is the first person after the chief manager, because he is responsible for both the internal and external environment. In addition to prestige, such a position also bears a huge responsibility. Sometimes it happens that this person in the organization becomes almost equal in relation to the CEO.
Who is the Commercial Director
Undoubtedly, each individual employee is invaluable to the enterprise. Nevertheless, the role of the commercial director in the successful functioning of the organization is difficult to overestimate. This is not just the manager’s right hand, but it’s also the face of any organization. He is responsible for almost all processes that are associated not only with supply and marketing, but also with some production issues.
Despite the fact that there is a generally accepted instruction of the commercial director that defines the scope of his duties, in fact, these boundaries are quite blurred and depend on the specifics and scope of the organization. So, if the enterprise is large, then the commercial director has a fairly wide range of responsibilities related to almost all divisions. In smaller organizations, this position allows you to concentrate on working with the external environment and expanding sales channels.
Also, do not forget about such a position as deputy commercial director. He has the same rights and obligations as his immediate superiors if he acts on his behalf and on his behalf. The commercial director delegates a number of his functions to his subordinate, who at the same time has a smaller area of responsibility.
The commercial director of LLC, CJSC, OJSC and other companies is also responsible for working with shareholders and shareholders. He is engaged in informing them, as well as searching for new participants.
Job description of a commercial director
Choosing a profession for yourself, you need to be clearly aware of what kind of work you will have to do. So, the job description of the commercial director contains the following responsibilities:
- drawing up strategic and operational plans for the economic and production activities of the organization;
- analysis of current work and quick response to deviations in the production process in order to normalize the situation;
- the study of financial indicators in order to make management decisions;
- monitoring compliance with the budget for the enterprise as a whole and for its units;
- monitoring the implementation of developed plans not only for the enterprise as a whole, but also for individual departments and divisions;
- development of measures to expand sales markets and increase sales.
What rights does the commercial director have
A person holding the position of commercial director has not only responsibilities, but also a number of rights in the organization:
- making independent decisions regarding the effective marketing of products within the competence;
- the opportunity to put forward proposals to the CEO to improve the work of the enterprise;
- the right to award subordinates for special merits (or to submit such applications to the manager);
- the opportunity to participate in the collective bodies of the enterprise when it comes to improving the production process, expanding sales channels, as well as marketing policy issues.
Commercial Director Functions
Instructions official commercial director allow us to highlight a number of mandatory functions, the implementation of which implies this position:
- definition and expansion of sales channels for goods and services;
- preparation of long-term strategic plans;
- negotiating with suppliers and customers;
- sales management;
- budget execution control;
- development and implementation of marketing policies;
- development of measures to reduce expenditure.
What should an applicant be able to do?
This is not an easy job. The commercial director must be able to fulfill a fairly wide range of responsibilities. In this regard, the applicant for this responsible position should have a number of knowledge and skills:
- be able to regulate the movement of finished products both within the enterprise and beyond;
- know the intricacies of budgeting;
- have the ability to search for distribution channels;
- have basic knowledge regarding personnel management of the enterprise;
- have negotiation skills;
- Be familiar with the development of advertising projects.
It is also worth noting some personal qualities that a sales director must possess:
- sociability;
- leadership skills;
- stress resistance.
Commercial Manager Specialist
The company’s commercial director must thoroughly familiarize himself with the following information about the organization’s work:
- the rules of law governing the activities of commercial enterprises;
- organizational structure of the company;
- comprehensive information on the range of products and the technology of its manufacture;
- methods of research and analysis of existing markets, as well as ways to search for new ones;
- existing, as well as promising or backup distribution channels;
- general information on the state of affairs in the industry in which the organization operates;
- rules and procedure for concluding contracts with suppliers and customers;
- theoretical aspects of marketing;
- foreign best practices in marketing and sales management;
- safety standards for workers.
Commercial Director Powers
Of course, the main person who manages all the processes in the organization is the CEO. The commercial director, however, has under his control and subordination the following business units:
- advertising and marketing departments that create the image of the organization in the external environment;
- public relations department, which ensures the recognition of the enterprise;
- the sales department, which determines the sales channels, as well as the logistics department, which determines the most profitable ways of delivering goods from producer to consumer;
- Warehouse service, where raw materials and supplies, as well as non-shipped products.
Working conditions
The work of a commercial director has a number of characteristics and features:
- the work regime and the work schedule are determined by the internal work schedule (however, due to the high responsibility, it is sometimes necessary to delay overtime);
- one of the duties of a commercial director is to go on business trips related to the need business negotiations with suppliers or buyers of products;
- in some cases, the commercial director is provided with official transport, or is the cost of fuel consumed during business trips covered?
- The commercial director has the right to sign a number of documents that fall within the area of his responsibility and job responsibilities.
Director's area of responsibility
The commercial director bears quite a serious responsibility for the activities of the organization. It implies the following points:
- organization of processes for the sale of products and its delivery to an intermediate or final consumer;
- compliance with not only their own labor discipline, but also the control of these processes regarding subordinates;
- ensuring complete confidentiality of all information regarding the organization of production, technological features, financial operations, marketing methods and so on;
- ensuring proper working conditions for their subordinates;
- responsibility for safety, including fire, in the premises where the units controlled by the business director are located.
Failure to comply with the rules and obligations
Sanctions and penalties may be applied to the commercial director in the following cases:
- improper performance of their duties or evasion of them;
- failure to comply with orders and instructions of a higher management;
- abuse of authority or use of official position to achieve material or other personal goals;
- the provision of false information and reporting to management or government agencies;
- neglect of fire safety and other circumstances that pose a threat to the life and health of employees;
- personal non-observance of labor discipline, as well as failure to take measures to ensure it among workers;
- criminal, administrative or civil offenses;
- causing material damage to the organization, which arose as a result of unlawful actions, and as a result of negligent inaction.
Who evaluates the quality of work of a commercial director
In order to determine the quality of work of the commercial director and the good faith performance of duties, inspections are periodically conducted. The following persons or bodies may be involved in this:
- daily control is directly carried out by the general director of the organization, who interacts quite closely with the commercial director on almost all issues related to management;
- at least once every two years, a special certification commission checks all the documentation, as well as the results of the business director.
In both the first and second cases, the work of this specialist is evaluated according to certain indicators: the quality of the tasks, as well as the completeness and accuracy of reporting.
How to find a job
Of course, for many applicants, a position such as a commercial director is quite desirable. Jobs in this area are constantly available, as firms strive to find the most professional and valuable employees. But not everyone will be accepted for such a position.
A prerequisite for employment will be the availability of higher education in the field of economics or marketing. In addition, the total length of service in managerial positions should be at least 5 years. Thus, if you just graduated from a university or had no previous management experience, then you are unlikely to be able to immediately become a commercial director.
If you want to get into a prestigious organization that provides decent pay and working conditions, then you should not look for vacancies on the Internet or in newspapers. The best option is to directly send your resume to those companies where you would like to work.
In 80% of cases, large organizations prefer to appoint their own employees who have sufficient work experience and are familiar with the structure and specifics of the enterprise to the position of commercial director. Therefore, if you do not immediately manage to get a high post, this is not a reason to give up. By conscientiously fulfilling your duties and taking the initiative, you have every chance in a few years from an ordinary specialist to become a highly paid commercial director.
An interesting fact is that a number of enterprises do not see the need for a commercial director. We are talking mainly about monopolistic organizations for which the sale of products is not a particular problem. Also, this position is not necessary in the event that the responsibilities for organizing supplies and sales are already distributed between individuals or units. This is also possible in the case when the company has several founders who can distribute among themselves these areas of responsibility.
