Job responsibilities commercial director- this is, first of all, the organization of sales of products, which means planning, negotiations, control of managers, etc. In our sample commercial director's job description, we also include a feature such as enterprise procurement management.
Job description of commercial director
APPROVED
General manager
Surname I.O. ________________
"________"_____________ ____ G.
1. General Provisions
1.1. The commercial director belongs to the category of managers.
1.2. The commercial director is appointed and dismissed by the order of the general director.
1.3. The commercial director reports directly to the general director.
1.4. During the absence of the commercial director, his rights and obligations are transferred to another official, which is announced in the order for the organization.
1.5. A person who meets the following requirements is appointed to the position of a commercial director: higher professional education and at least 3 years of managerial work experience in the relevant field.
1.6. The commercial director should know:
- commercial, civil, financial legislation;
- profile, specialization, features of the structure of the enterprise;
- prospects for the technical, financial and economic development of the enterprise;
- the procedure for developing business plans;
- basic principles of financial planning;
- the procedure for the conclusion and execution of business and financial contracts.
1.7. The commercial director is guided in his activities:
- legislative acts of the Russian Federation;
- the Charter of the organization, the Internal Labor Regulations, other regulations of the company;
- orders and orders of the management;
- this job description.
2. Job responsibilities of the commercial director
The commercial director performs the following job duties:
2.1. Organizes management of the material and technical supply of the enterprise, activities for storage, transportation and sale of products (sale of goods, provision of services).
2.2. Coordinates the development and preparation of long-term and current plans for material and technical support and sales of products (sale of goods, provision of services), financial plans.
2.3. Coordinates the development of norms and standards for material and technical support (stocks of material and technical resources), quality standards for products (goods, services), storage of finished products (goods), standards for stocks of finished products (goods).
2.4. Gives recommendations and consultations to managers and specialists in financial planning, sales, sales; controls their work.
2.5. Provides the timely preparation of estimates and financial and other documents, calculations, reports on the implementation of plans for material and technical supply, sales of finished products (sale of goods), financial activities.
2.6. Carries out control over the financial and economic indicators of the enterprise, the expenditure of financial resources.
2.7. Conducts negotiations on behalf of the enterprise with the counterparties of the enterprise on economic and financial transactions, concludes economic and financial agreements on behalf of the enterprise, ensures the fulfillment of contractual obligations.
2.8. Participates on behalf of the enterprise in fairs, auctions, stock exchanges, exhibitions for advertising and sales of products (goods, services).
3. Rights of the commercial director
The commercial director has the right:
3.1. To represent the interests of the enterprise in relations with government agencies, third-party organizations and institutions on commercial issues.
3.2. Establish job responsibilities for subordinate employees.
3.3. Request from the structural divisions of the enterprise information and documents necessary for the performance of his official duties.
3.4. Participate in the preparation of draft orders, instructions, instructions, as well as estimates, contracts and other documents related to the solution of commercial issues.
3.5. Submit proposals for improving the work related to the responsibilities provided for in this instruction for the management's consideration.
3.6. Require the management of the enterprise to ensure organizational and technical conditions and the execution of the established documents necessary for the performance of official duties.
4. Responsibility of the commercial director
The commercial director is responsible for:
4.1. For non-fulfillment and / or untimely, negligent fulfillment of their duties.
4.2. For non-compliance with the current instructions, orders and orders for the preservation of commercial secrets and confidential information.
4.3. For violation of the rules of internal labor regulations, labor discipline, safety regulations and fire safety.
- Director for the development of new projects at Yandex. Previously, he was engaged in regional expansion in Gett taxi and coupon service Vigoda.ru, worked as a commercial director at the Deliver freight company.
We talked with Artem about what a commercial director is responsible for and what skills he should have in order to form an effective sales department.
There is a stereotype that a commercial director is only concerned with sales.
In reality, there are many more responsibilities. The commercial director can be responsible for four areas at the same time - sales, purchasing, logistics and marketing. But this is the ideal situation.
In practice, it all depends on the scope and organizational structure of the company. For example, in many companies that provide services, in principle, there is no logistics department, and in some companies the production department is responsible for purchasing. But it is more efficient if these departments are managed by one person.
The Deliver company is engaged in cargo transportation. In fact, logistics is the main product, so it is not separated into a separate area. Everything related to sales, purchases and marketing, the company was subordinate to the commercial director.
Initially, Deliver was responsible for sales of the company's founder, shareholder and CEO. But if a business needs significant growth in some area, they hire a specialist in this area. It was the same with us. When the transition to a new level was required, they decided to hire a commercial director.
At Deliver, he was responsible for sales, purchasing and marketing. We have transformed each of these directions.
#1. Changing the sales system
When I joined the company, the sales department was already working. Agreements were signed with the first clients, but:
the approach was unsystematic
requirements for managers were unreasonable
the structure of the department was complex
there was no clear tariff and credit policy
First of all, I restructured the department: I distributed tasks among employees and systematized work with clients.
We focused on direct selling, but started testing other channels in parallel. We launched agency sales through warehouse complexes, later - partner sales with tender sites and banks, including Sberbank, Otkrytie, and Tinkoff-Bank.
# 2. Regional expansion
In parallel with this, I was engaged in regional expansion. We have opened two offices - in St. Petersburg and Yekaterinburg. But in the regions there was a difficulty in finding reverse downloads for our machines. Moscow is a hub that accumulates cargo and distributes it to the regions, but cargo does not come from the regions in the same volume, there is mainly intracity and intraregional delivery.
To solve this problem, we decided to grow deeper into the regions. In the process of work, we tested different groups of clients - from individuals to giant FMCG companies, whose cargoes are transported by hundreds of cars every day.
# 3. Work with clients
Many suppliers of goods and services want giants to be their customers. We were no exception. But we faced difficulties in working with such companies:
long grace periods individual document flow specific product requirements
We focused on large local manufacturers and distributors of local goods - food, building materials. Medium-sized companies have fewer requirements and all processes are much easier to organize. The margin of business with them is higher.
The move to scaled-down customers has provided growth that has propelled Deliver into the market leader.
#4. Choice of sales channels
We started with direct sales. Then they tested marketing channels, spent huge sums on marketing and PR, participated in conferences and exhibitions, tried agency and affiliate referral programs and loyalty programs.
Having estimated the cost of attracting one customer and his life cycle, we realized that direct sales are more profitable than the rest. And so we focused on them.
Marketing serves as a supportive function - it is not an independent department, it helps direct sales. The challenge was to analyze these channels. We had several teams: one was engaged in marketing, the other was in PR-projects, the third was in BTL-activity, indirect influence on consumers. Together we analyzed the results and looked for the most effective customer acquisition channels.
Any commercial company aims to make a profit. In fact, the commercial director and his department are the structure that generates this profit. The commercial director communicates with clients, understands the internal processes of the organization and, naturally, affects the financial performance of the company.
I studied the experience of successful commercial directors and managers in global companies and compiled for myself a list of five key qualities and skills of a commercial director.
#1. Leadership
A commercial director is a leader who can make quick decisions in a rapidly changing situation and lead people to their goals.
# 2. Strategic thinking
The sales manager must be able to rise above the fluidity, above the situation, and decide in which direction to move. Be able to apply new techniques and generate innovative ideas.
# 3. Sales and communication skills
The work of a commercial director is closely related to communication - with customers, employees, suppliers and colleagues. He must be able to negotiate and understand the principles of sales.
#4. Organizational skills
One of the main competencies of a commercial director is the desire and ability to work in a team, to organize it. By motivating, encouraging, and controlling employees, the sales director succeeds in his department.
#5. Personal effectiveness
Like any other leader, a sales director must have a flexible mind. For this, it is important to constantly develop, improve yourself, take courses and trainings.
In general, the creation of a sales department consists of three steps.
Determine the portrait of the target client. It is important to prescribe in as much detail as possible who, why and how will use your product or service.
Select the main sales channels. Based on the client's portrait, you determine the main sales channels: direct, through dealers or distributors, with a focus on online marketing or agency sales.
Select and train employees. Once you decide to whom and how you will sell, assemble the right team.
Often, a sales, procurement or logistics manager is appointed to the position of a commercial director. These employees are more immersed in the production process and the process of making a profit, they directly influence it and know some of the tasks. It is easier for them to take on the rest of the tasks.
The commercial director also deals with marketing. But the set of tools that he needs to own directly depends on the industry and the products of the company.
In marketing, online tools are intensively used - it is important to understand them at least at a basic level. The CFO needs to understand the general operating principles and basic metrics that measure the effectiveness of campaigns. And you shouldn't separate marketing and PR - they are interconnected.
The main task of the commercial director is to determine the group of clients who will be targeted by marketing campaigns and test the tools, finding the cheapest and most capacious acquisition channels.
The commercial director interacts with stakeholders - stakeholders. Internal stakeholders are divided into three types:
founders investors staff
Investors and founders companies influence the definition of business strategy, budget alignment, products and company profits. From staff the speed and quality of work on the creation of a product, the provision of services and, in general, the speed of development of the company depend.
In interaction with managers - top management - in my opinion, the main thing is not to engage in political games. It is important to understand the objectives and goals of other departments and build communication based on the overall goals of the company. If there is the right reasoning and you are saying rational things, it is not difficult to convey to your colleagues the usefulness of your proposal. The main thing is an honest and open dialogue.
It is worth mentioning that in various companies, the duties of this leader involve leadership over such components of activities as sales, marketing, advertising, purchasing. Therefore, it is worth saying that the title of the position may sound differently, for example, a sales director or a marketing director.
Job responsibilities of the commercial director
The position of a commercial director has practically no boundaries, so the range of his tasks and functions can be quite wide. He can act in the following directions:- Development of plans for the activities of an enterprise or organization together with the management, that is, the general director and the society of shareholders.
- Searching for new ways and opportunities necessary for the company to successfully develop and occupy its niche in the market.
- Solving tasks in the field of personnel development, for example, salespeople and managers.
- Market analysis.
- Sales department management, selection and selection of sales channels.
- Development of a price policy and range of products or services provided by the company, programs that increase sales.
- In addition to developing and implementing these programs, such a leader must ensure that they function in a positive way and are implemented.
- Control over logistics.
- Drawing up plans and forecasts about the future needs and costs of the firm.
Job description
In each company and organization, the job description of the person holding this position is drawn up taking into account all the features of the activities that the company is engaged in. Therefore, the job description of, for example, a commercial director of a refinery and the job description of a person working in a similar position in a company that sells household appliances will be quite different.But, nevertheless, they will also have a general list of tasks and directions in which this leader should be able to understand and work.
It is important to understand that a person holding the position of a commercial director must necessarily have the appropriate level of knowledge and skills, as well as experience in leadership positions.
What is the role of a commercial director?
Since this leader has a wide range of responsibilities and tasks, it can be assumed that he plays one of the leading and significant roles in the company.Not a single important meeting of the company's shareholders can do without his participation, plans and prospects for the development of the organization are not discussed, a budget for the financial year is not formed, only with his approval contracts are concluded with suppliers and companies providing services.
Due to the fact that a commercial director is a person with certain powers, it is important to pay attention to his personal characteristics when hiring him so that you do not have to fight against his use of his official position for personal purposes.
Commercial director's rights and responsibilities
This employee has the following rights:- Represent the interests of the company on issues of its activities to government agencies, other organizations, enterprises and institutions.
- Make information requests from divisions and branches of the company, which are necessary for the implementation of its activities.
- Submit proposals for the development and improvement of the company for the consideration of shareholders and the CEO.
- Develop responsibilities for your subordinates.
- Participate in the preparation, development of documentation related to its activities.
- Put a signature and a visa on the documentation that is directly related to his activities.
- Require the management of a company or enterprise to comply with all organizational and technical conditions for employment.
- To interact on issues related to his activities with the heads of other structural divisions.
Any organization, if deemed necessary, has the right to add its own to the above list of these rights.
In most companies a responsibility this employee boils down to the following points:
- For offenses committed in the course of activities in accordance with the Criminal Code of the Russian Federation, the Civil Code of the Russian Federation.
- For improper performance or non-performance of official duties prescribed in the job description in accordance with the labor legislation of the Russian Federation.
- For causing material damage to the company in accordance with the Criminal Code of the Russian Federation, the Civil Code of the Russian Federation.
Duties of the commercial director of LLC
The duties of a commercial director of an LLC, that is, a private company, are largely determined by the specifics of its activities. In most firms, no matter what form (LLC, OJSC or JSC), the commercial director performs the following tasks:- Determines the strategy and policy of the firm;
- makes up the characteristics of the products sold;
- carries out intracorporate and intercorporate communication on issues that directly relate to the sale of manufactured products;
- optimizes sales mechanisms and methods.
Duties of the commercial director of a trading and construction company
For greater clarity, the duties of a commercial director can be considered on the example of a trading and construction company. Responsibilities of the person holding this position in a major construction company, are, as a rule, as follows:- he searches for new customers in need of construction services;
- is engaged in the development of such areas of the company as construction, design;
- negotiates with suppliers and customers;
- analyzes competing organizations;
- prepares documentation, commercial proposals for the provision of construction services;
- prepares documents for participation in tenders;
- controls the quality and terms of construction services rendered by the company.
The main tasks of the commercial director in trading company somewhat different, since all his activities are aimed at selling and promoting the goods being sold on the market in order to increase sales and profits. This manager is engaged in the formation of plans for purchases and sales, carries out the selection and training of sales managers, develops the marketing policy of the organization, draws up systems for motivation and adaptation of personnel.
In whatever area a given leader works, it is very important that his personal characteristics correspond to the level of the position held. Successful in this position will be those people who are sociable, stress-resistant, mobile, able to think strategically, have the makings of a leader, are responsible and can analyze.
The Commercial Director is responsible for: - proper organization of work on the sale of products in accordance with the approved programs (plans) of the Company; - performing and labor discipline of employees of commercial services; - safety of information (documents) containing information constituting a commercial secret of the Company, other confidential information, including personal data of employees of the Company; - ensuring safe working conditions, maintaining order, compliance with fire safety rules in the premises of the sales service. 1.6. Persons with higher professional (economic or engineering and economic) education and at least 5 years of experience in economic work in managerial positions can be appointed to the position of commercial director. 1.7.
Commercial director's rights and obligations
Ensure the preparation of reports on the results of commercial activities, statistical reporting, as well as their submission in the prescribed manner to the relevant authorities. 2.15. Ensure reliable protection of information (documents) containing information constituting a commercial secret of the Company, other confidential information, including personal data of employees of the Company. 2.16. Supervise the training of subordinates, create conditions for them to improve their qualifications, professional growth, business career development and official promotion in accordance with personal merit and level of qualifications.
2.17. Exercise control over the observance by subordinates of the rules of labor protection and safety measures, industrial sanitation and fire protection. 2.18. Use in relation to subordinates the rights granted to encourage them (bring them to justice). 2.19.
Commercial director: responsibilities, requirements and personal qualities
The main business of this employee in this case is to promote the brand and products 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 policy;
- control over accounts receivable;
- formation of plans for purchases and sales, supervision over their implementation;
- selection and training of a trading team;
- creation of a motivation system and certification of managers;
- inspection of the sales process;
- monitoring customer requests.
The duties of the commercial director of a trading company additionally include planning and managing the assortment policy, knowledge of logistics and the basics of commodity circulation, interaction with key, important for the enterprise, customers, participation in negotiations responsible for the organization.
Commercial Director
The responsibilities of a person holding this position in a large construction company are, as a rule, the following:
- he searches for new customers in need of construction services;
- is engaged in the development of such areas of the company as construction, design;
- negotiates with suppliers and customers;
- analyzes competing organizations;
- prepares documentation, commercial proposals for the provision of construction services;
- prepares documents for participation in tenders;
- controls the quality and terms of construction services rendered by the company.
The main tasks of a commercial director in a trading company are somewhat different, since all his activities are aimed at selling and promoting the goods being sold on the market in order to increase sales and profits.
Responsibilities of the commercial director, his role in the organization and main tasks
The commercial director is one of the key and significant figures in the management system of each enterprise. At the same time, there is no single understanding of what he should be doing. It should be said that in some organizations, the responsibilities of a commercial director involve managing marketing, sales, purchasing, advertising, so the position may sometimes sound different, for example, a director of sales and marketing.
In other companies, the marketing division is not subordinate to it. If we talk about small organizations, then, as a rule, they do not have such a position. They simply recruit individual managers for different departments, while the commercial director can be taken over by the manager.
It is worth noting that the commercial director reports directly to the head of the company.
Job responsibilities of the commercial director
The main thing is not having a diploma, but possessing the necessary qualities, skills and competencies. In addition to professional knowledge of computer programs, an applicant for the position must have experience in promoting various goods, know the psychology of buyers, and understand the structure and specifics of the sales mechanism. Sometimes a specialist who came from the ranks of ordinary managers can bring more value to the company than an employee hired from outside.
The main thing is that the candidate possesses management skills and shows results in increasing profits. After all, a commercial director is not a performer, but an organizer and leader.
- 01.04.2016
Read also
- Commercial director: responsibilities and functions.
Responsibilities As noted above, the position of a commercial director is very multifaceted, so his responsibilities may include the following areas:
- Together with shareholders and the general director - development of a work plan (current and future) of the organization, ensuring the effective use of all resources.
- Development of strategies, search for new opportunities for the successful development of the company in the market.
- Determination of the company's trade policy based on market analysis and past sales performance, determination of the company's geographical areas of operation, implementation of the latest sales strategies.
- The commercial director, whose responsibilities are quite versatile, is also responsible for building and effectively training the sales team.
- Sales department management, selection of sales channels, dealer network management.
What are the commercial director of the LLC?
What is the role of a commercial director? Since this leader has a wide range of responsibilities and tasks, it can be assumed that he plays one of the leading and significant roles in the company. Not a single important meeting of the company's shareholders can do without his participation, plans and prospects for the development of the organization are not discussed, a budget for the financial year is not formed, only with his approval contracts are concluded with suppliers and companies providing services. Due to the fact that a commercial director is a person with certain powers, it is important to pay attention to his personal characteristics when hiring him so that you do not have to fight against his use of his official position for personal purposes.
Personal qualities A candidate for such a high position as a commercial director, whose duties involve constant contact with people, must have certain personal qualities. Namely:
- Ability to interact with people, sociability.
- The qualities of an organizer and a leader.
- Strategic thinking.
- High efficiency.
- Ability to work with numbers and other data, analytical skills.
- Mobility, ability to make decisions quickly.
- Responsibility, initiative, focus on results.
- High resistance to stressful situations.
- Striving for self-development and growth.
Who reports to the commercial director of the enterprise
To create optimal conditions for the timely and high-quality performance by the sales service of the day-to-day tasks assigned to it in strict accordance with the approved work procedure (regulations), marketing technologies, and product sales plans. 2.3. Lead the work on the formation of a sales policy and marketing strategy, the definition of its main directions in accordance with the development strategy of the Company and measures for its implementation. 2.4. Participate in the development of business plans for the organization of the Company in terms of meeting its current and future needs in the sale of products of a certain quality, quantity, assortment and range. 2.5. To ensure the necessary level of development of the sales infrastructure and its constant growth, the proper effectiveness of marketing decisions, and a steady increase in the efficiency of the sales service. 2.6.
Attention
A commercial director is a person who, by his actions, mobilizes, controls and directs company personnel to maximize profits. Depending on the direction of the production or trade organization, the requirements for the qualities and abilities of the candidate for this position and the functional responsibilities of the commercial director of the enterprise may differ slightly. The role and main tasks of the commercial director Despite the importance of this figure in the management system of the enterprise, his responsibilities and functions are not always clear.
Most often, people from the purchasing department apply for this position. Who, if not a sales manager, knows the specifics of communicating with clients, has experience in concluding contracts, understands the specifics of his organization.
- How the concept of "commercial director" evolved.
- Responsibilities and functions of the commercial director.
- Which companies do not need a commercial director.
- When is it advisable to rename a commercial director to a sales director.
- Where can a commercial director be responsible for purchasing?
Commercial Director deals with activities related to supply, economic and financial activities and sales of the company.
The term "commerce" has become fundamental for the people who were the first in Russia to start working as commercial directors. After all, many areas of the domestic economy in the 90s were based on resale. Therefore, the whole business was based on commerce - to buy on more favorable terms, in order to then sell at a higher price. These tasks were entrusted to ordinary shuttles, and to entire companies, which today managed to reach millions of turnovers.
At that time, many companies did not even have the positions of sales director, purchasing director, and the term "marketing" was known only to a few. The commercial director was assigned a second role after the CEO, who was usually the shareholder or owner of the business.
CEO says
Ilya Mazin, General Director of ZAO Office Premier, ErichKrause Group of Companies, Moscow
Often people in the position of commercial director grow into successful owners and managers of enterprises. This kind of career progression is much less common for CFOs or C&C directors. Commercial directors in 80% of cases are specialists with experience in sales departments, in the positions of managers or executives in charge of VIP areas. Professionals who have left the purchasing departments sometimes also become commercial directors.
The commercial director is assigned duties in several areas of activity at the same time. Consequently, he has sufficient skills to move to a higher position. Therefore, in the position of a commercial director, a person acquires quite valuable, important experience, mastering the necessary skills and forming useful connections for future work.
As the entire business and markets became more civilized, separate tasks began to emerge from commercial activities - including the functions of marketing, purchasing and sales. Therefore, the role of commercial directors in the work of companies has undergone certain changes.
KPI for a commercial director: calculation examples
The editorial board of our magazine, using examples, figured out for what indicators and in what amount it is worth remunerating a salesman.
Responsibilities and functions of the commercial director
The area of responsibility of any commercial directors includes a number of basic functions:
- Determines the distribution channels for goods and services.
- Strategic planning of the company.
- Work with providers.
- Regulation of the work of the sales department.
- Control of budgeting in all components of the company.
- Coordination of the marketing of the company.
- Reduced business costs.
For some companies, the interpretation of the position of a commercial director may differ. Let's consider this issue in more detail using practical examples.
Commercial Director = Head of Sales
In this case, on commercial director assigned a minimum set of functions. He will only be responsible for the sales of his company. A more appropriate job title in this situation would not be Commercial Director, and the sales director. To prevent a person from feeling demoted, you can rename the position during the change of the leader in this position.
Expert opinion
Andrey Milyaev, Commercial Director of the Hosser Group of Companies, St. Petersburg
In our company, the commercial director will manage two sales departments - complex telecommunications projects and engineering equipment. Now we are engaged in the reorganization and restructuring of the business processes of our company. The goal of such transformations is to increase the efficiency of our interaction with the market, and internal interaction within the company itself - between the departments that are responsible for the areas of logistics, sales and production. It is important that the management in the company is provided from one point - for a unified policy of working with the market. In the future, when business processes are formed, it is necessary to select employees from the existing employees of the sales department, who will become the heads of these departments.
Commercial Director = Sales Director + Marketing Director
This option corresponds to the position of Director of Marketing and Sales, which has become common in Western practice. The marketing director and the commercial director in one person need to be able to perfectly navigate the trends in the market, taking into account the peculiarities of the work of competing companies, the preferences and expectations of customers. But managing sales in the marketplace often requires maximum return, which is why marketing itself fades into the background. As a result Commercial Director may not have enough time for marketing. Consequently, there may be a lack of the necessary marketing tools, as well as the skills of their application in practice, a strategic view of the medium-term perspective of market development.
- Material motivation of staff. CEO Advice
Commercial Director = Sales Director + Marketing Director + Purchasing Manager
The combination of marketing, sales and purchases in the same hands provides a set of important advantages when choosing the most demanded product at the moment, also with an understanding of the consumer qualities of the product (it is quite important when choosing a product). This option becomes especially relevant, first of all, for intermediary and trading companies. But it should be used with sufficient caution if the company does not cooperate with regular suppliers, and therefore it is necessary to regularly analyze the competitive market to find the most suitable purchasing conditions. In such conditions, the likelihood increases that while striving to fulfill the sales plan, the manager will not be able to pay due attention to finding the best options for working with his supplier.
Expert opinion
Julia Koroleva, Commercial Director of ZAO National Distribution Company, Moscow
The main principle of our organizational structure is the efficiency of decision-making, mobility. Therefore, the entire sales block (including purchasing, marketing and sales) is combined, these functions are assigned to the commercial department. The tasks of the commercial director include not only control, but also the very work with clients, concluding contracts for the supply of goods with large manufacturers, monitoring price trends in their market. This organization of work allows us to have reliable information without distortion. For example, it can be distorted within companies, in which these areas of activity are assigned to different divisions (inconsistency of actions is possible). Thanks to the organizational principle, our company provides operational management of its business processes with cost reduction.
Commercial Director = General Manager
A similar scenario is possible, when the General Director is formally not ready to transfer his functions of the head of the company, but in fact is not engaged in operational management. Consequently, his tasks are assigned to his "right hand" - the first deputy, the executive director, and in companies in which the priority is given to commercial activities, these functions are assigned to the commercial director. Personally, I am against such a combination of functions. The CEO needs to allocate resources across all areas of business. And when conflicts arise (for example, between the finance and commercial departments), the CEO should become an independent arbitration tribunal. When the managerial function is assigned to the commercial director, there is a danger that these processes will be transferred in favor of the commercial departments.
Expert opinion
Dmitry Grishin, Commercial Director of Aqua Star, Moscow
I work as a commercial director, but in fact I am entrusted with the functions of the general director. Since the owner of our company, with his ambitious plans in conquering new directions (not related to our main field of activity), seeks to achieve complete control of the company's activities, but at the same time save enough time to work on new projects. Consequently, some problems arise - it takes too long to make important decisions of the company.
Together, we managed to get away from total control (over any spent penny), certain issues were highlighted that could affect the work of the company - the functional characteristics of equipment, logistics, financial factors related to loans and their repayment. I solve these issues with our CEO together. At the same time, all issues remain under the control of the CEO.
Consequently, the company does remain under the control of the CEO, but at the same time he has more free time.
Dmitry Kurov, commercial director of ISG, Moscow
From personal experience, I can say that a commercial director can achieve efficiency if he is “balanced” by a CFO. Otherwise, the commercial director's job responsibilities may be mainly focused on commerce, which overlooks operational efficiency issues.
In most cases, the reason for misunderstanding between the general and commercial director is their solution to tasks of different levels. I had to work when the CEO set the vector of activities that hindered commercial development from the position of a commercial director. In reality, more important was the company's stock price, which was influenced by many factors.
Which companies don't need a commercial director
A commercial director is not needed by companies in which the sale of services or products is not particularly difficult. Basically, these are companies that occupy a position on the market that is close to a monopoly (taking into account their location, product specifics or other factors). The role of the commercial factor is low in companies that offer individual or exclusive developments. Such companies can work in any industry - from the development of highly specialized, professional software to complex engineering products. In this segment, more importance is given to representatives of the creative or production department, their role is reduced to showing and presenting the developed products. Often, salespeople are led by one of the top managers, so there is no particular relevance in the commercial director.
CEO says
Ilya Mazin, General Director of Office Premier Holding, ErichKrause Group of Companies, Moscow
The need for a commercial director arises when a company has to link two factors - obtaining favorable terms of supply and sale. In the absence or decentralization of one of these functions, then there is no need to appoint a commercial director.
Also, very large or too small companies do not need a commercial director. After all, small companies simply cannot afford the costs of managers. As a rule, the commercial director in this case is replaced directly by the owner of the company.
If the company has several founders, then they usually distribute the areas of management among themselves. One of them takes over the block of earning money, the second is responsible for the administrative and economic complex, etc.
In the case of large businesses, the tasks of the commercial director are often distributed among the line managers.
But in the work of medium-sized companies, the commercial director becomes a key figure - a top manager, on whom the profitable part of the business directly depends.