5 functions of a company director

Darryl Bachmeier
Apr 12, 2019

As companies have grown, the figure of the CEO has gained prominence because in their hands rest different vital processes for the organization to succeed. The responsibilities and functions of a director are many and give shape to the organizational culture marking the course of the company and enhancing the joint work between the different areas of activity. The responsibilities and functions of the General Director in an organization are:

  1. Encourage a good work environment

One of the functions of the General Director is to promote a work environment that facilitates the achievement of the company’s objectives. The response of managers to problems and opportunities, as well as performance expectations that they establish in the organization, will determine to a large extent the work environment that is breathed. If a director sets high standards, department heads will do the same, and a culture of quality will be fostered, where each worker strives to give their best.

  1. Develop a strategic vision

The General Director is in a privileged position to achieve a global vision of the organization so that among its functions is to develop a strategic vision that promotes growth. The director must be able to understand the potential of the company and glimpse the opportunities that the future holds, designing an action plan and a business plan that allows going from the current state to the desired state. Of course, you must also be able to transmit that vision to your team, so that everyone shares the same values and gets involved in achieving organizational goals.

  1. Distribute resources

One of the main functions of a director is to manage the material and human resources available to the organization, distributing them intelligently in different areas to use them more efficiently. A good General Manager concentrates more resources in situations that represent interesting opportunities to achieve an important competitive advantage in the medium or long term.

In the late 1970s, for example, the new CEO of Frito-Lay completely changed the business strategy of building new plants each year to gain market share in a business that was producing a low performance. Instead, it invested part of the resources in process improvements and productivity, which increased the profit margin of each production plant.

  1. Supervise and reorganize processes

Among the functions of the Director-General is the supervision of the strategic processes of the organization. That means maintaining a regular control to detect problems and business opportunities to respond quickly. The best managers use information intelligently and do not compromise their organization with tasks that they can not manage, but they also make sure that they work at maximum capacity. Thanks to this systematic control, they can know if the planned processes are optimal or if it is necessary to reorganize them to make them more efficient.

An example of deep restructuring occurred within British Airlines in 1981, when its new director, Lord King, noticed that the company was operating very inefficiently and wasting valuable resources. So he decided to eliminate unprofitable routes, modernized the fleet and repaired the image of the airline by hiring a marketing expert. In a decade, British Airlines not only recovered but also managed to earn more than competitors’ airlines.

  1. Lead the team

One of the functions of the Director-General is to lead his team. A director must convey passion for the company and commitment to work. You should also be aware of the importance of recruiting and retaining talent and be responsible for promoting the most capable and efficient people to positions of greatest responsibility. A good director establishes a culture of continuous training, assigns challenging tasks to the heads of departments to eliminate possible blockages and performs job rotation to break the functional empires that are created over time and hinder the growth of the company.

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