A management director, or managing director, in the United Kingdom may be the chief executive of the company. In the United States, a managing director is the senior executive in charge of a major division or department of the company who also is on the board of directors. In nonprofit organizations, the executive director and the managing or management director are the top two executives in the organization.
Nonprofit vs. For-Profit Boards
All boards, whether nonprofit or for-profit, are involved in overseeing the company's management. The chief executive and management directors of a for-profit company are members of the board, while the executive director and possibly even the management director of a nonprofit company are normally not members of the board. This is because a nonprofit board is a public trustee responsible for making sure the nonprofit organization is serving the public interest and not putting a priority on making a profit for those involved in day-to-day organization management. The for-profit board serves the stakeholders in the company and is responsible for setting the goals and strategies for making the most money possible, and the management directors are vital in this role.
Management Director as Chief Executive
The main duties of a chief executive officer of a company are to work with the board to set the goals, direction and strategy of the company, and then to collaborate with the management team, which includes other officers and senior managers, to carry out those set goals. The chief executive is expected to devote all her efforts to the company to spearhead the creation of new business opportunities, to act as the public face of the company and interact with government, business, public leaders and organizations of all kinds.
Management Director as Division Head
The head of a major corporate division or department is in charge of carrying out directives from the CEO and board, and creating department strategies and new business in keeping with those directives. The managing director contributes to the board by imparting information on business trends and issues that impact the profitability of his department, and using his expertise to assist in forming and evaluating corporate goals, direction and strategies.
Management Director for Nonprofit
The management director of a nonprofit functions as the chief operating officer. While the executive director is charged with being the face of the organization and being the chief fundraiser, the management director runs the day-to-day operations, supervising progress on the various initiatives of the organization as well as all departmental operations such as finance, sponsorships, memberships and events.
Experience and Educational Requirements
Minimum educational requirements are usually a college degree in business or a field related to the company's industry, with advanced degrees preferred. Outstanding experience and a history of excellent performance can usually overcome lack of educational credentials, particularly if the candidate is actively engaged in taking courses and attending seminars designed to enhance her job skills.