What Does a Manager Do? Investors Want to Know

Editor’s note: “The Angel Connection” is a regular feature in WRAL Local Tech Wire. LTW asked consultant Bill Warner to share advice for entrepreneurs seeking venture capital investment. He is chairman of the Triangle Accredited Capital Forum, an angel investor network with over 100 members throughout the Southeast. The Angel Connection is published weekly.

RESEARCH TRIANGLE PARK - Investors like to see that there is strength and depth in the management team of a company they are considering.

To them, management includes group leaders, who sometimes play the role of both manager and individual contributor, to section manager, director, vice president, senior vice president, executive vice president and chief executive officer.

Each of these positions has a different scope of responsibility, but they all have several things that they do in common. Investors believe that a manager has three fundamental roles.

First, a manager is a leader. As a leader, the manager establishes and directs the vision and mission of the team. In this capacity, the manager is the source of visionary strength of the department and keeps the staff on a consistent track to achieving the vision.

Second, a manager is a project manager. In this role, the manager is responsible for directing the operational activities of the team by scheduling the utilization of the department’s resources, including people and capital equipment. In this way, the manager gets things done through the efforts of the people on the team. The manager is responsible for establishing and executing the project plan that is necessary to achieve the team’s mission.

Third, a manager is a coach, and as such picks the people for the team and improves the performance of people through ongoing counseling. As a coach, the manager works with people to help them become greater contributors by helping them improve their efficiency and effectiveness.

In these roles, a manager performs several duties that are very important to the successful functioning of any team.

• Strategist – The manager puts the strategy in place to achieve the department’s vision and mission.

• Organizer – The manager gets the department organized to implement the process and guides all the project activities using the process.

• Priority setter – The manager establishes priorities for projects and tasks and makes decisions required when they have to change.

• Objective setter – As part of the performance management process, the manager establishes performance goals and objectives for people. Establishing the objectives for people and then letting them know how they are performing is management’s bread and butter.

• People manager – The manager makes sure that the right people are placed in the right job assignments.

• Problem solver – The manager facilitates problem solving, as needed, by directing the process of problem solving with team members.

• Delegation of responsibility – A very important duty is to delegate responsibility and accountability.

• Enabler – The manager is an enabler for and ensures that people get what they need in order to do their jobs.

• Communicator – The manager not only communicates important information needed for people to do their jobs, but also information that is necessary for people to understand the context of their jobs.

• Policy advocate – Managers are familiar with company policy, communicate policy to employees, and represent the management of the company.

• Relationship builder – The manager’s job is to establish positive and effective working relationships both inside and outside the company.

• Recognition of success – A manager makes sure that people are
recognized for their contributions and extraordinary efforts on the job.

• Mentor – Although people are responsible for their own careers, the manager can be a valued adviser in career planning.

• Manages upward – The manager keeps higher levels of management informed of their department’s progress that effect their commitments. In addition, the manager advises upper management on key issues and helps in the decision making process.

This is not an exhaustive list of management duties, but it represents some of the most important ones. These are the kinds of things that investors regularly look for as they perform their due diligence on the company’s management.

About the author: Bill Warner is the Managing Partner of Paladin and Associates, a business consulting firm in the Research Triangle Park area of central North Carolina, and is the Chairman of the Triangle Accredited Capital Forum, an angel investor network with over one hundred members throughout the southeast.