A managing director is someone who is responsible for the daily operations of a company or organization. In some regions of the world, the term “managing director” is equivalent to “chief executive officer (CEO),” referencing the executive head of a company. In other regions, managing directors primarily work as the heads of individual business units within a company, rather than heading up the company as a whole. Whether managing an entire company or just a part of one, managing directors have a number of responsibilities.

In the sense of the executive head of a company, a managing director is a member of the board, with voting capacity which can help him or her shape company policies. In addition to belonging to the board, the managing director also handles business operations, from establishing and implementing a business plan to making decisions about the fate of units within the business. Managing directors are held legally responsible for the actions of their companies, and they may also be accountable to shareholders if the company is public.

Some nonprofits, institutions, and private organizations also use the managing director model to organize themselves. As with major companies, the managing director is not responsible for finances, which are instead handled by a finance director. However, the managing and finance directors need to be in close contact with each other to discuss issues which will affect company performance and to talk over specific financial needs and concerns which need to be taken into account when making decisions for the company.

When a company is divided into a number of semi-autonomous units, each unit may have a managing director. The managing director has skills which are unique to the unit he or she heads, along with connections in the industry which may be useful. For example, at an aerospace company, very different managing directors might head up experimental aircraft, commercial aircraft, and spacecraft divisions, with the company choosing people on the basis of experience and qualifications which suit them to handling specific issues and managing people.

As a member of senior management, a managing director is expected to keep a company solvent, and to promote expansion and innovation within the industry. Managing directors who fail to keep a company on the right track may be removed by votes from shareholders or board members, even when a company's failings are not necessarily the fault of the managing director. This can be an especially big issue when companies suffer due to general economic trends or widespread industry reforms which force a company to radically change the way it does business, and many managing directors accept the fact that they could become scapegoats if a company's fortunes experience a downturn.