When my father hired a new managing partner for his advertising agency, the 13-year-old me was confused. And the confusion carried on for most of my teenage years till I joined his business and finally understood the very important managing partner definition – this person was a manager and a partner. Sounds crazy, right?
A managing partner manages the daily affairs of the business. They also maintain the position of a partner, an equivalent to an owner. If you notice, both the roles are pretty significant and require much expertise, which can only come from adequate experience! Let’s find out more about this role.
Who Is A Managing Partner?
Are you an ambitious person typing on Google often, ‘what is a managing partner’? You have arrived at the right place because we will tell you all about a managing partner’s role. Simply put, the managing partner of a company is the person who enjoys several ownership privileges and is also in charge of handling daily activities.
This coveted position does not exist within all company structures. Rather only companies with partnership opportunities or limited liability can have this role. However, a managing partner can have a more definite and active position within the company compared to other partners like the general, silent, or nominal ones.
If you are still typing stuff like ‘what does managing partner mean’ on Google, you must understand that the role of managing partners is diverse and can vary depending on the company they work with. For instance, while this role can be similar to that of a CEO but that does not mean both positions report to the same heads.
Both managing partners and CEOs are people responsible for the execution and management of plans meant for promoting the company’s goals, both short-term and long-term. However, while a Chief Executive Officer is responsible for dealing with the board of directors, managing partners report to a committee including all the partners of the company.
Why Are Managing Partners Important In Business Relationships?
When a group of people or two people start a company, they usually decide on forming a business partnership with each person investing a certain amount of money in the company. This investment buys them ownership rights. So naturally, business partners bear both positive and negative impacts on the business.
As discussed above, any managing partner plays a critical role in the daily functioning of any company. Consequently, they play a vital role in managing the relationship amongst all the other partners in the process. This is because, in the absence of managing partners, all the management work will fall on the shoulders of these partners.
Now when too many people get involved in management-related tasks, it can create a lot of confusion, leading to a significant decrease inefficiency. But, on the other hand, when one person is handling all of these tasks instead, it leaves the other partners plenty of time to solve high-level company issues. Thus, these managing partners play an essential role in implementing a holistic strategy for smoothly running operations.
What Is The Role Of A Managing Partner In Business?
As an ambitious person wanting to become a managing partner is completely fine. But have you ever wondered about the managing partner job description? If you have not, keep reading to find out the functions of this coveted position!
- The managing partner works and collaborates with an executive committee. Also including all the other partners, for setting the goals and upcoming plans of the company.
- The next job of managing partners in the execution of the determined goals and approved strategies.
- A large part of any managing partner’s role is to communicate directly with both employees, investors, and executives for collaborating with them.
- Managing partners track and monitor the daily functioning of company operations.
- Managing partners are also responsible for evaluating all financial tasks like reports, accounts, and bank statements.
- While handling all activities related to the daily functioning of the company, managing partners are also responsible for making sure that the company is adhering to all legal and government regulations.
- Managing partners are naturally the primary person responsible for making final decisions related to hiring employees and even firing them. Additionally, any sort of employee-related evaluation, including salary negotiations, is handled by them.
- Lastly, a managing partner also reviews the performance of both individual employees and teams. While doing so, the M.P. mentions the changes that need to be made as well.
If you are hoping to be successful in life and someday become a managing partner. Have you thought about the salary these people receive? The managing partner salary range lies between 3,662,513 to 5,351,263 in Indian rupees. However, it is also depending on the seniority principle and expertise of the candidates.
Frequently Asked Questions (FAQs)
As an ambitious person with high hopes for your career, deciding to become a managing partner is a pretty cool move. At least, I think so. However, it will take plenty of time to become one though. You can’t just graduate from university and apply for a managing partner’s position in a company.
It takes years to build that kind of experience. So start young and move along the ladder or find some investors willing to invest in you!