Career Roadmap

General Management

Overview
General managers (GMs) make up a given company’s senior executive team. These are the people at the highest levels of the company. They chart the company’s strategic direction, decide on what processes the company will use to pursue that strategy, then lead the rest of the company's employees through the day-to-day tasks necessary to move the company in that direction. Working with the board of directors, who represent the shareholders of the company, they make decisions about things like what mix of products and/or services the company will sell, how the company will allocate its resources, what markets the company will go after, and how the company will finance its operations. A company’s general managers can include everyone from the CEO (chief executive officer), the CFO (chief financial officer), the CIO or CTO (chief information officer or chief technology officer—the head of IT), and the COO (chief operating officer) to the president, the treasurer, the controller, and the top sales, marketing, human resources, legal, and other executives.

These are the people at the top of the corporate ladder. These days, many of them achieve fame even outside the world of business (think: Bill Gates, Larry Ellison, Jack Welch, or Carly Fiorina). Whether famous or not, most all of them have extensive experience in their industry, in their career function (e.g. the CFO typically knows accounting in and out), and/or as leaders; indeed, their knowledge about an industry and their ability to provide direction can mean the difference between an organization's success and failure. In exchange for all this responsibility, they often earn a pretty penny. We’ve all heard of the ridiculous sums of money CEOs at many companies make these days, but all the members of any company’s executive team typically make more money than everyone else at the company. The flipside, of course—at least at public companies—is that when things don’t go well for the company, the shareholders can toss the general managers to the curb.

What You'll Do
For the most part, general managers control how an organization operates. They develop corporate structures and policies, direct and coordinate employee activities, find and develop alliances with suitable business partners, raise money to grow their organizations, and make systematic changes, as needed, to keep their businesses profitable. Without their guidance, a company could flounder. General managers bring a measure of order and purpose to their organizations.

GMs are expected to see and understand the big picture. The health of a company rests firmly on their shoulders. They develop the strategies that will result in success or failure for their organizations.

GMs also need to be their companies' biggest advocates. They communicate the value of their organizations to the outside world, telling the press why people should care about their products, marketing, strategy, and goals. Employees, strategic partners, shareholders, and even a company's chairperson rely on the general management team to promote the company's interests at every turn. GMs give their subordinates a reason to want to work for them. They instill a sense of pride in shareholders.

Small businesses and start-ups often have limited management teams. The founders, who take on the titles of CEO and president, typically lead such companies. As a company grows and departmentalizes, the general management function is divided into a family of positions.

While the CEO and president remain committed to the overall mission of the organization, other positions have more specialized responsibilities. Some examples are the chief operations officer (COO), chief financial officer (CFO), chief technical officer (CTO) or chief information officer (CIO), and general manager (GM). Underneath them are department heads who run specific areas of an organization, such as marketing or human resources. They in turn hire and oversee managers who handle the day-to-day supervision of lower-level employees.

In this way, larger corporations have developed a well-defined chain of command. Lower-level employees answer to operational managers, who oversee their daily work. Many firms have several layers of frontline and middle managers. Such supervisors are responsible for managing the functions of an organization. They set project goals, make hiring decisions, settle staff disputes, and ensure that deadlines are met.

Operational managers report to department heads who set policy and determine the goals of their divisions. Department heads answer to the executive officer who controls their area of specialty. For example, the heads of Web development and information technology answer to the CTO.

Executive officers work together to set the goals and policies of a corporation. Their work is overseen by the general manager or president, who supervises the entire organization. Above them is the CEO, the highest-ranking manager. The CEO is held accountable for all aspects of the business. However, the CEO still has to answer to the board of directors.

In publicly held corporations, the board is ultimately responsible for the success of an organization. Members of the board have a fiduciary responsibility to look after the stockholders' (owners') interests first and foremost. If the company begins to falter, they have the right and the duty to correct the situation using any means possible, up to and including firing the CEO or any other top executive. In some cases, the board takes control of all managerial functions until a business has stabilized.

Who Does Well
GMs can be found in every industry and organization, from publicly held companies to non-profits and governmental agencies. Before entering management, GMs first need to prove themselves in their core industries. Usually, they work for a time as operations managers, then slowly work their way up the corporate ladder.

GMs can expect to be in the spotlight most of the time. Every decision they make and every policy they set is subject to scrutiny by those around them. There will be no place to hide. CEOs and presidents of large organizations are the stars of the corporate world. They receive almost as much attention and scrutiny as Hollywood movie stars.

The trade press follows a GM's every move closely. Employees and shareholders want to know the GM’s vision for the company, their management style, and how much money they made last year. As long as profits are up, they can do no wrong. But even a slight blip in the markets can change public perception. They are often the first to be let go. However, the public dismissal of a GM will be padded by a large settlement offer and the GM's equity in the company—the so-called "golden parachute."

 Online Resources

Vault
http://www.vault.com

WetFeet
http://www.wetfeet.com/cb/schools/yalesom/toc.asp

 Print Resources Available in the CDO

Business Week
Fast Company
Forbes
Fortune
Wall Street Journal

Additional Job Search Web Sites www.som.yale.edu/careers/jswebsites/jswebdefault.asp

The Executive Career Guide for MBAs : Insider Advice on Getting to the Top from Today's Business Leaders