Comparing Responsibilities: Managing Director vs Operations Director

Updated 7 November 2026

Managing Director vs Operations Director: how duties, decision-making authority, focus and skills differ, whether an OD sits on the board and when to hire each.

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Comparing Responsibilities: Managing Director vs Operations Director

The Managing Director and the Operations Director are two of the most important leadership roles in a UK business, and they are often confused. Both carry the word “director”, both sit close to the top of the organisation, and in a smaller company the same person may cover parts of both. Yet the roles answer different questions. The Managing Director (MD) is accountable for where the business is going and whether it gets there; the Operations Director (OD) is accountable for how the business delivers, day in and day out, against the plan the MD and board have set. If you are hiring in London, our Managing Director recruitment in London team can help. Smaller businesses often start with a part-time Managing Director working a few days a week.

This guide compares the two roles in practical terms: their duties, their decision-making authority, the balance between strategic and operational focus, the skills each needs, and how the two should work together. It also covers a question that comes up in almost every brief we take: whether an Operations Director is a statutory director at all. If you are weighing up which hire comes first, our Managing Director recruitment team can help you define the brief before you go to market, and for businesses that need senior finance input alongside either appointment, a fractional CFO can add financial visibility without a full-time cost. For ongoing operational leadership without a full-time hire, consider a part-time COO.

Overview of Roles

Before looking at the detail, it helps to set out the core purpose of each role in a sentence. The MD runs the company as a whole and answers to the board and shareholders for its performance. The OD runs the machinery of the business (production, service delivery, supply chain, facilities, quality and often IT and procurement) and answers to the MD, or in larger groups to a Chief Operating Officer. The overlap is real, but the centre of gravity is different. Where operations need senior leadership at short notice, an interim COO can step in.

Managing Director

Strategic Leadership

The Managing Director (MD) is primarily responsible for the overall strategic direction and leadership of the company. This role involves setting long-term goals, defining the company’s vision, and making sure the organisation is moving towards its strategic objectives. The MD works closely with the board of directors to develop and implement business strategies that align with the company’s purpose and values, and is usually the person who presents the strategy to the board for approval and then answers for its delivery.

Financial Oversight

The MD has a significant role in financial oversight, including budgeting, financial planning, and protecting the financial health of the organisation. This includes approving major expenditure, investments and financial policies within the limits the board has delegated. The MD often works with the Finance Director or Chief Financial Officer (CFO) to monitor financial performance and make adjustments needed to hit targets. Where the operational side needs strengthening at the same time, fractional COO recruitment can give the MD senior operational support a few days a week while the business grows into a full-time role.

Stakeholder Management

Managing relationships with key stakeholders, such as investors, lenders, major customers, suppliers and regulators, is a critical responsibility of the MD. This involves regular communication, negotiation, and making sure stakeholder interests are understood and balanced against the company’s goals. The MD often represents the company in high-level meetings, funding discussions and public settings.

Organisational Culture

The MD plays a crucial role in shaping and maintaining the organisational culture. This includes promoting core values, fostering a positive working environment, and making sure the culture supports the strategy rather than working against it. The MD is also responsible for leading by example and setting the tone for ethical behaviour and sound corporate governance.

Operations Director

Operational Efficiency

The Operations Director (OD) is focused on the day-to-day operations of the company, making sure business processes are efficient and effective. This role involves overseeing production or service delivery, supply chain management, logistics and quality control. The OD works to improve operational workflows, reduce costs and raise productivity. For a fuller picture of the remit, see our guide to what an Operations Director does.

Performance Management

The OD is responsible for monitoring and managing the performance of the operational departments. This includes setting performance targets, conducting regular reviews and putting improvement plans in place where results fall short. The OD makes sure that operational activity is aligned with the company’s strategic goals and the standards the business has committed to its customers.

Resource Allocation

Effective resource allocation is a core part of the OD’s job. This involves deploying people, equipment and materials so that operational needs are met, working closely with the HR Director on workforce planning and with department heads to move resources to where they are needed and clear operational bottlenecks.

Compliance and Risk Management

The OD makes sure operational activities comply with relevant laws, regulations and industry standards. This includes implementing and monitoring compliance programmes, conducting risk assessments and developing contingency plans. Health and safety is a good example: the Health and Safety Executive’s guidance Leading health and safety at work is written for directors and board members, and in practice the OD is usually the senior person who turns that board-level commitment into working systems on the shop floor, in the warehouse or on site.

Managing Director and Operations Director compared

Key Responsibilities of a Managing Director

The MD’s responsibilities span the whole business. In an owner-managed company the MD may also be a major shareholder; in a private equity-backed or group subsidiary, the MD is more often an employed executive working to an investment case or a group plan. Either way, the core responsibilities are broadly the same.

Strategic Leadership

A Managing Director is primarily responsible for setting the strategic direction of the company. This involves developing long-term goals, formulating business strategies, and making sure those strategies fit the company’s purpose. The MD must also stay close to industry trends and market conditions so that decisions are grounded in what is actually happening to customers and competitors, not last year’s assumptions.

Financial Oversight

The MD oversees the financial health of the organisation. This includes budgeting, financial planning, and making sure the company meets its financial targets. The MD must also review financial reports, manage investment decisions and make sure the company complies with its financial reporting and tax obligations, typically with a Finance Director doing the detailed work.

Operational Management

While the Operations Director focuses on day-to-day operations, the MD makes sure those operations serve the company’s strategic goals. The MD is responsible for overall operational effectiveness across all departments, not just operations: sales, finance, people and technology all report into the MD’s view of the business. This includes agreeing the performance measures the OD is held to, reviewing operational performance at leadership level and backing the improvements the OD proposes.

Stakeholder Engagement

The MD acts as the primary point of contact between the company and its stakeholders, including shareholders, customers, suppliers, lenders and the community. This involves maintaining strong relationships, communicating the company’s performance and direction, and dealing with any concerns stakeholders raise. When things go wrong, it is usually the MD who has the difficult conversation with the bank or the major customer.

Corporate Governance

Making sure the company meets its legal and ethical obligations is a central responsibility of the MD. Where the MD is a statutory director, the general duties in Part 10, Chapter 2 of the Companies Act 2006 apply directly, including the duty to promote the success of the company for the benefit of its members as a whole. This includes overseeing governance practices, making sure the business complies with the law, and promoting a culture of integrity and accountability. Our guide to the responsibilities of an interim director covers how these duties apply when a director is appointed for a fixed period.

Talent Management

The MD plays a crucial role in talent management, including the recruitment, development and retention of senior executives and key personnel. The MD must make sure the company has the right leadership team in place to deliver the strategy. This also involves succession planning, including for the MD’s own role, and building a culture that keeps good people.

Risk Management

Identifying, assessing and mitigating risk is another critical responsibility of the MD. This covers financial, operational, strategic and reputational risk. The MD must make sure the business has a sensible approach to risk that protects its assets and its long-term sustainability, and that the board sees the risks that matter.

Performance Monitoring

The MD is responsible for monitoring the overall performance of the company. This involves setting key performance indicators (KPIs), reviewing performance data and adjusting strategy and operations where needed. The MD must make sure the company is on track to meet its goals and must be honest with the board when it is not.

Innovation and Growth

Driving innovation and growth is a fundamental responsibility of the MD. This includes exploring new business opportunities, investing in product and service development, and encouraging new thinking across the organisation. The MD must also identify and pursue strategic partnerships, acquisitions and disposals that strengthen the company’s competitive position.

Public Representation

The MD often serves as the public face of the company. This involves representing the company at industry events, with trade bodies and in the media. The MD must communicate the company’s vision, values and achievements clearly to protect and build its reputation.

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Key responsibilities of a Managing Director and an Operations Director

Key Responsibilities of an Operations Director

The Operations Director’s remit varies more by sector than the MD’s does. In manufacturing it centres on production, engineering and supply chain; in logistics on network, fleet and warehousing; in professional or financial services on service delivery, systems and client operations. The responsibilities below are common to most versions of the role. Our Operations Director job description sets them out in a format you can adapt for your own brief.

Strategic Planning and Execution

An Operations Director is responsible for developing and implementing operational strategies that support the company’s overall business objectives. This involves setting operational goals, identifying the KPIs that matter, and making sure all operational activity contributes to those goals. The OD must also keep evaluating and adjusting operational plans as market conditions and internal circumstances change. The OD writes the operational plan; the MD and board own the business plan it serves.

Process Optimisation

One of the primary responsibilities of an Operations Director is to streamline and improve business processes. This includes identifying inefficiencies, introducing good practice, and using technology to improve productivity and reduce costs. The OD must work closely with other departments to make sure processes are standardised where they should be, and that resources are used effectively.

Budget Management

The Operations Director oversees the operational budget, making sure spending is in line with financial plans. This involves forecasting operational costs, monitoring spending and adjusting as necessary to stay within budget. The OD works with the Finance Director to identify cost-saving opportunities and put measures in place to improve margins, and is often the person who knows best where cost can come out without damaging service.

Team Leadership and Development

Leading and developing the operations team is a critical responsibility. The Operations Director must recruit, train and mentor managers and staff to build a high-performing team. This includes setting performance expectations, giving regular feedback and creating a good working environment. The OD must also make sure team members have the skills and resources to do their jobs well. Operations teams are often the largest part of the workforce, so the OD’s people leadership has a disproportionate effect on culture.

Quality Control and Compliance

Making sure products and services meet quality standards is a key responsibility. The Operations Director must establish and enforce quality procedures, run regular audits and deal with issues as they arise. Compliance with industry regulation and company policy is also essential, which means the OD must keep up to date with the relevant rules and standards and make sure the organisation follows them.

Supply Chain Management

The Operations Director oversees the supply chain, from procurement to delivery. This involves managing supplier relationships, negotiating contracts, and making sure materials and products arrive on time and within budget. The OD must also deal with supply chain disruption and put plans in place to reduce exposure to single points of failure.

Performance Monitoring and Reporting

Regularly monitoring and reporting on operational performance is crucial. The Operations Director must track KPIs, analyse data and produce reports that show how efficiently and effectively the operation is running. This information is used to make decisions, identify areas for improvement and report progress to the MD, the board and other stakeholders.

Risk Management

Identifying and mitigating operational risk is a key responsibility. The Operations Director must carry out risk assessments, develop contingency and business continuity plans, and take steps to minimise potential disruption. This covers risks in the supply chain, quality, health and safety, systems and regulatory compliance.

Customer Satisfaction

High levels of customer satisfaction are essential to the success of the organisation. The Operations Director must understand customer needs and expectations, deal with issues and complaints that stem from delivery, and keep improving the quality of products and services. This involves working with sales and customer service so that what is promised is what gets delivered.

Innovation and Continuous Improvement

Building a culture of continuous improvement is vital. The Operations Director must encourage team members to spot opportunities for improvement, test new ideas and put changes in place that make the operation more efficient and effective. This involves keeping up with industry practice and applying what works to the organisation’s own operations.

Decision-Making Authority

Decision-making authority is where the two roles differ most clearly. In a well-run company, the board sets out a schedule of matters reserved for the board and a delegated authority framework that says who can approve what. The MD usually holds the widest delegated authority below the board; the OD holds authority within operations, up to agreed limits.

Managing Director

Strategic Decisions

The Managing Director holds the highest level of executive decision-making authority within the organisation. They are responsible for making the strategic decisions that shape the long-term direction of the company. This includes setting overall business goals, entering new markets and committing to significant investments. The MD’s decisions are subject to the board and, for certain matters, to shareholders, but within those limits the MD has the final say on how the strategy is executed.

Financial Decisions

The MD has significant authority over financial decisions, including budget approvals, financial planning and resource allocation. They oversee the financial health of the organisation and lead decisions on acquisitions, capital expenditure and financial risk, bringing the largest of these to the board. The MD makes sure the company’s financial approach fits its long-term objectives.

Organisational Structure

The MD has the authority to decide the organisational structure of the company. This includes creating new departments, merging existing ones and appointing senior executives, often including the Operations Director. They play a crucial role in shaping the leadership team and making sure the structure supports the strategy.

Operations Director

Operational Decisions

The Operations Director focuses on the day-to-day operational decisions that keep the company running smoothly. They are responsible for implementing the strategies set by the MD and making sure operational processes are efficient and effective. This includes decisions on production schedules, supply chain management and quality control.

Resource Management

The OD has authority over the allocation and management of resources within operations. This includes decisions on staffing levels, equipment purchases within delegated limits, and inventory management. They make sure resources are used well to meet operational targets and maintain productivity.

Process Improvement

The OD is responsible for decisions on process improvement and operational efficiency. They identify where processes can be simplified or strengthened and put changes in place to improve performance. This includes adopting new technology, refining workflows and getting more from existing resources.

Decision-making authority of a Managing Director and an Operations Director

Comparison of Decision-Making Authority

Scope and Impact

The decision-making authority of the MD is broader and has a greater impact on the overall direction and success of the company. Their decisions are strategic and long-term, affecting the whole organisation. The OD’s authority is more focused on operational efficiency and effectiveness, with a direct impact on the day-to-day functioning of the company and, very often, on customers’ experience of it.

Hierarchical Influence

The MD operates at the top of the executive structure, with authority over all departments and functions. Their decisions affect the entire company, including the operations the OD manages. The OD, while holding substantial authority within their own area, works inside the strategic framework set by the MD and makes sure operational activity supports the company’s wider goals.

Decision-Making Process

The MD’s decision-making often involves consultation with the board, senior executives and external stakeholders such as investors and lenders. Their decisions are usually based on wider analysis and longer-term considerations. The OD’s decision-making is more focused on immediate operational needs and typically involves working with operational managers and frontline teams so that decisions can actually be implemented.

Strategic vs. Operational Focus

The simplest way to describe the difference is time horizon. The MD spends most of their time on the next one to five years; the OD spends most of theirs on the next day, week and quarter. Both need to understand the other’s horizon, and the best pairings are the ones where each respects the other’s focus rather than trying to do both jobs.

Strategic Focus of a Managing Director

Vision and Long-term Goals

A Managing Director is primarily responsible for setting the long-term vision and strategic direction of the company. This involves defining the goals the organisation aims to achieve over several years and making sure the company’s purpose and direction are clearly communicated at every level.

Market Positioning and Competitive Strategy

The MD plays a crucial role in analysing market trends, understanding competitors and positioning the company to take advantage of opportunities. This includes decisions on market entry, product range and strategic partnerships. The MD must anticipate changes that could affect the company’s market position and act before they do.

Resource Allocation and Investment Decisions

Strategic focus also involves deciding where resources go. The MD oversees the distribution of financial, human and technological resources across departments and projects. This includes proposing major capital investments, acquisitions and other initiatives that require significant financial commitment.

Stakeholder Management

Managing relationships with key stakeholders, including shareholders, board members and major clients, is another strategic responsibility of the MD. This involves regular communication, reporting on company performance and making sure stakeholder interests are understood when strategic choices are made.

Operational Focus of an Operations Director

Day-to-Day Management

An Operations Director is primarily focused on the day-to-day management of the company’s operations. This includes overseeing production or service delivery, supply chain management and making sure operational activity runs smoothly and efficiently. The OD is responsible for turning the strategies set by the MD into operational reality.

Process Optimisation and Efficiency

The OD is tasked with continually improving operational processes to raise efficiency and reduce cost. This involves analysing current workflows, identifying bottlenecks and implementing process improvements. Many ODs use established methods such as Lean, Six Sigma and Total Quality Management to structure this work.

Performance Metrics and KPIs

Monitoring and managing performance metrics is a key operational focus. The OD establishes KPIs that measure the effectiveness of operational activity, such as output, quality, on-time delivery, supply chain performance and customer satisfaction, and uses them to make data-driven decisions and drive continuous improvement.

Team Management and Development

The OD is responsible for managing and developing the operational team. This includes recruiting, training and retaining staff, as well as building a culture of continuous improvement and operational discipline. The OD makes sure the team has the skills and resources to do the job.

Integration of Strategic and Operational Focus

Alignment of Goals

While the MD sets the strategic direction, the OD makes sure operational activity is aligned with it. This requires close working between the two roles so that long-term objectives become actionable plans that are then delivered.

Feedback Loop

The OD gives the MD essential feedback on the feasibility and impact of strategic initiatives. An MD who commits to a new product line or a major customer contract without testing it against operational capacity is taking an avoidable risk. This feedback loop helps refine strategy and keeps the company’s ambitions grounded in what the operation can deliver.

Risk Management

Both roles play a part in risk management, from different perspectives. The MD focuses on strategic risks such as market shifts and competitive threats, while the OD deals with operational risks such as supply chain disruption, equipment failure and production problems. Together they should give the board a complete view of the risks the business faces.

Is an Operations Director a Statutory Director?

Not necessarily, and this is one of the most common points of confusion. “Director” in a job title does not, by itself, make someone a director of the company in law. A statutory director is appointed to the board, registered as an officer of the company and bound by the general duties in the Companies Act 2006. The government’s guidance on being a company director sets out what those legal responsibilities involve.

In most UK companies the MD is a statutory director and sits on the board. The Operations Director may or may not be. In larger organisations the OD is often a senior employee with “director” as a job title, reporting to the MD or COO but not on the board. In smaller and mid-sized businesses, particularly owner-managed and private equity-backed ones, the OD is more often appointed to the board as well.

This matters for three reasons. First, a board-level OD takes on personal legal duties and should understand them before accepting the appointment. Second, someone who acts as a director in practice, without being formally appointed, can still be treated as one in law, so businesses should be clear about who is and is not on the board. Third, the distinction affects the brief: a board-level OD needs commercial and governance skills that a purely operational head may not, which is why we always ask clients early in an Operations Director recruitment process whether the role carries a board seat. Our comparison of the Operations Director and Head of Operations roles covers where the line usually sits.

How the Two Roles Work Together

The MD and OD relationship is one of the most important working partnerships in any business. When it works, the MD can spend time on customers, investors and the future, confident that the operation is in safe hands. When it does not, the MD gets pulled into operational detail, the OD feels second-guessed, and decisions slow down.

A few practical habits make the partnership work:

  • Agree the boundary in writing. A clear statement of what the OD can decide alone, what needs MD approval and what goes to the board avoids most friction. It also makes the OD’s role easier to recruit for.
  • Share one set of numbers. The MD’s board pack and the OD’s operational dashboard should reconcile. Arguments about whose figures are right waste leadership time.
  • Bring the OD into strategy early. Operational constraints are cheaper to address at the planning stage than after a commitment has been made to a customer or investor.
  • Keep the MD out of the weeds. An MD who regularly overrides operational decisions undermines the OD’s authority with their own team. Challenge should happen in the leadership meeting, not on the shop floor.
  • Plan succession for both roles. The OD is often a natural successor to the MD, particularly in operationally heavy businesses, and a development plan that builds commercial and stakeholder experience makes that step realistic.

Where a business also has a Chief Operating Officer, the OD usually reports to the COO, who sits alongside the MD or CEO at executive level. Our COO recruitment team regularly helps clients decide whether they need a COO, an Operations Director or both.

When a Business Needs One, the Other, or Both

Smaller businesses rarely need both roles from the start. In a company with a founder or owner acting as MD, the first senior operational hire is often an Operations Manager or Head of Operations. As the business grows, adds sites or takes on more complex customer contracts, the operational load becomes too much for the MD to carry alongside strategy, sales and investors, and an Operations Director becomes necessary.

The reverse also happens. A founder with a strong operational background may run the operation well but struggle with the external, commercial side of the MD role as the business scales. In that case the right hire may be an MD, with the founder moving into an operations or technical role, or stepping up to chair.

Some common triggers we see:

  • Private equity investment. Investors often want a full-time MD to own the value creation plan and an OD to deliver the operational improvements built into the investment case.
  • Rapid growth or multi-site expansion. New sites and higher volumes expose weaknesses in process and systems that an experienced OD is hired to fix.
  • Turnaround or underperformance. An interim Managing Director or interim Operations Director can stabilise the business quickly while a permanent search runs.
  • Succession. An MD planning to step back may want a strong OD in place first, both to protect the business and to develop a possible successor.
  • Limited budget. A fractional Managing Director working a set number of days a month can give an owner-managed business senior strategic leadership before a full-time salary is affordable.

Whichever route you take, the brief should start with the problem the business needs solving, not the job title. Our MD recruitment process begins with that conversation, and it often changes the shape of the role.

Skills and Qualifications

There is no single required qualification for either role, and no licence to be an MD or OD in an unregulated business. What matters is a track record of doing similar work at a similar scale. That said, some qualifications are well regarded, and certain skills separate strong candidates from the rest.

Managing Director

Leadership and Strategic Vision

A Managing Director must have strong leadership skills and the ability to set a strategic vision for the company. This includes the ability to bring senior managers and employees with them towards long-term goals, and the judgement to know when to change course.

Financial Acumen

An MD should have a good understanding of financial management, including budgeting, financial analysis, cash and investment decisions. This is essential for making informed decisions that affect the company’s financial health and for holding credible conversations with investors and lenders.

Communication Skills

Effective communication is essential for an MD to explain the company’s vision, strategy and goals to stakeholders, including employees, investors and board members. Strong negotiation skills are part of this.

Decision-Making and Problem-Solving

An MD must be comfortable making high-stakes decisions and solving complex problems, often with incomplete information. This requires critical thinking and the ability to weigh different scenarios and their consequences.

Industry Knowledge

Knowledge of the industry in which the company operates is vital. This includes understanding market trends, competitors and the regulatory requirements that apply to the business.

Educational Background

Many MDs hold a degree, and some an MBA or a professional qualification such as accountancy or engineering, but experience in senior management matters more than any single credential. Some directors also take governance-focused qualifications; the Institute of Directors explains its Chartered Director standard for those who want formal recognition of board-level competence.

Operations Director

Operational Expertise

An Operations Director must have a deep understanding of operational processes and systems. Depending on the sector, this includes supply chain management, production, logistics, service delivery and quality control.

Project Management

Strong project management skills are essential for an OD to oversee and co-ordinate operational projects such as system implementations, site moves or capacity expansions. This involves planning, executing and monitoring projects so they are delivered on time and within budget.

Analytical Skills

An OD should have strong analytical skills to assess operational performance and identify areas for improvement. This includes being comfortable with data and building and using operational metrics.

People Management

Effective people management is crucial for an OD to lead and motivate large teams. This includes developing managers, managing performance and resolving conflict, often across shifts and sites.

Process Improvement

An OD should be skilled in process improvement methods such as Lean, Six Sigma or Total Quality Management (TQM). These are useful for improving efficiency and reducing waste, though results matter more than certificates.

Educational Background

Many ODs hold a degree in business, engineering or a related field. Certifications in project management or process improvement are valued, and chartered status with a relevant professional body can help in technical sectors. Substantial experience in operations management at a similar scale is usually the deciding factor.

Conclusion

Managing Director

The Managing Director holds a pivotal role in steering the company towards its long-term goals. Their responsibilities cover strategic planning, stakeholder management and overall leadership. They are the face of the company and make the high-level decisions that shape its future. Their skill set includes clear strategic thinking, strong leadership and sound commercial and financial judgement.

Operations Director

The Operations Director focuses on the day-to-day running of the company, making sure operations are efficient and dependable. Their responsibilities include process improvement, resource management and operational planning. They are the backbone of the company’s operational success, making sure strategic plans are delivered. Their skill set includes operational expertise, attention to detail and strong organisational ability.

Decision-Making Authority

The decision-making authority of a Managing Director is broad, covering strategic, financial and operational decisions within the limits the board sets. They lead on major company decisions and are accountable to the board. The Operations Director also holds significant authority, but focused on operational decisions that affect the efficiency and effectiveness of the company’s processes. They usually report to the Managing Director and make sure the strategy is implemented on the ground.

Strategic vs. Operational Focus

The Managing Director’s focus is primarily strategic, covering long-term planning, market positioning and growth. They set the direction of the company. The Operations Director has an operational focus, covering the implementation of strategy, process improvement and day-to-day management. Their role is to turn the strategic plan into operational reality.

Skills and Qualifications

A Managing Director needs strategic thinking, leadership, financial acumen and the ability to manage stakeholder relationships, usually backed by substantial senior management experience and a good understanding of the industry. The Operations Director needs skills in operational management, process improvement and resource allocation, typically with a background in operations, logistics or a related field and a clear record of improving operational performance.

If you are deciding which of these roles your business needs next, or how to define the brief, the Managing Director vs CEO comparison and our COO job description are useful next reads.

Frequently asked questions

Is a Managing Director more senior than an Operations Director?

Yes, in almost every UK company. The Operations Director usually reports to the Managing Director, or to a COO who in turn reports to the MD or CEO. The MD is accountable for the whole business; the OD for its operations.

Can one person be both Managing Director and Operations Director?

In smaller businesses, yes, and it is common for an owner-MD to run operations directly. It becomes difficult as the business grows, because the external and strategic demands of the MD role leave little time for operational detail. That is usually the point at which a separate OD is hired.

Does an Operations Director have to be on the board?

No. An Operations Director can be a senior employee with a director job title and no board seat. If they are appointed as a statutory director, they take on the legal duties of a company director under the Companies Act 2006.

What is the difference between an Operations Director and a COO?

A COO is usually an executive committee role with a wider remit, sometimes covering operations, technology, people and commercial delivery across a group. An Operations Director is more often focused on a specific operation, business unit or site network. In some mid-sized companies the titles are used interchangeably.

Can an Operations Director become a Managing Director?

Yes, and it is a well-trodden path, particularly in manufacturing, logistics and other operationally heavy sectors. The gaps to close are usually commercial, financial and stakeholder experience, which can be built through exposure to the board, customers and investors before the step up.

Should we hire an interim or a permanent Operations Director?

Interim suits a defined problem with a clear end point, such as a turnaround, a system implementation or covering a vacancy. Permanent suits a long-term leadership need. Some businesses start with an interim and convert or hire permanently once the role is better understood.

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About the author

Adrian Lawrence FCA is the founder of Exec Capital. He is a Chartered Accountant holding an ICAEW practising certificate in his own name, with more than 25 years’ experience operating at C-suite level. His background spans private equity-backed businesses, owner-managed companies and listed environments, giving Exec Capital a practitioner’s understanding of what senior leadership hires actually require. View Adrian’s ICAEW profile.

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