A managing partner is a salaried position given to a senior partner or shareholder, most typically in a law, consulting, financial or accounting firms. His or her duties are similar to a chief executive officer (CEO) of a corporation, except the position is typically associated with general and limited partnerships.
Some businesses may opt to hire a managing partner in addition to a CEO in order to take care of day-to-day operations as well as other duties, often giving them a financial stake in the company.
Preparing a Business Plan
When taking on a managing partner, you’ll want to make sure to have a solid business plan that will give the managing partner a clear idea of what his or her duties will be. This will provide a blueprint of what they are expected to implement.
A good business plan will address expectations of where your business will be in the future, and it’ll also outline the strategy and benchmarks that need to be met in order to get there.
Be sure to clearly designate which part of your business you are interested in growing. This will help anticipate where your resources will be going and will project how the allocation of resources to different areas will affect your business.
Duties of a Managing Partner
A managing partner is responsible for the operations of your business. Since this is a broad designation, a managing partner will most likely delegate many of his or her duties to people at other positions.
Suppose you’re an established business looking to hire a managing partner and already have employees performing some of the duties normally reserved for the new role. In that case, you should consider letting those employees continue with those tasks, allowing your managing partner to concentrate on other higher-level aspects of the business.
Here are the most important duties you’ll want your managing partner to perform:
- Executing your business plan: The managing partner monitors your progress to ensure that you are achieving the goals you set out to accomplish. He or she will also continue to develop the plan.
- Overseeing and coordinating: The managing partner makes sure that each department is working together and accomplishing their collective goals in a timely, professional and fiscally responsible manner.
- Developing culture: The managing partner meets regularly with employees to discuss workplace developments, changes in policies or to address concerns in order to ensure that the business meets ethical standards.
- Monitoring financial performance: The managing partner is responsible for ensuring the financial soundness of the business. He or she also addresses any issues that arise with revenue, bills or expenses.
- Hiring and developing personnel: The managing partner is responsible for the recruiting, interviewing, hiring, orientation and training of new personnel. They will also determine the salary for new team members.
- Governing the business: The managing partner is responsible for convening the partners, providing regular reports and mediating any disputes that may arise among leadership.
- Representing the business: The managing partner represents your business at events and will be responsible for your relationship with the media.
- Reporting on the business: The managing partner is responsible for preparing presentations that provide budgets, projected income and expenses to the partners in addition to management reports.
- Reporting on personnel: The managing partner is responsible for reviewing the performance of personnel and recommending those that should be considered for raises, promotions or partnership.
- Approving expenditures: The managing partner is responsible for approving any expenditure by any employee or partner.
Hiring a Managing Partner
There are a number of factors you will want to consider when hiring a managing partner:
- Hire someone that addresses areas of your business where you are lacking. As the duties of a managing partner are very broad, you will want to hire someone that can address concerns you have in the management of your business. Hiring a candidate that has similar management skills as someone already employed at your business will only create problems, as you will have multiple people attempting to do the same job. Once you take this into consideration, create a job description for the position.
- Your managing partner should be the leading representative of your firm’s culture, so pick someone who embodies your business’s culture.
- A qualified candidate should be willing to consider radical changes to the operation of your business. Of course, you should always be judicious when making changes to your business plan, but you will want someone that is willing to do so when the appropriate time comes.
- Ask your prospective managing partner how he or she can increase your client or customer base. This will give you a good idea of how your managing partner views your business and may help you distribute assets appropriately.
- Decide on compensation. A managing partner typically takes a salary in addition to profits made from having equity in the company.
The duties of a managing partner are far-reaching and at first glance, overwhelming, as a managing partner is responsible for the operation of your business in almost all aspects. An experienced business manager will know how to take on this responsibility and will understand how to delegate the many duties he or she is required to fulfill.