When you first start a business, you usually have to be the manager, sales team, marketing manager, and everything in between. As your business grows, however, you can’t continue to wear every hat. Wouldn’t it be great to share the workload with someone whose ultimate goal is to help you and the company grow? That’s the responsibility of the General Manager.

What Is a General Manager?

A general manager (GM) is a senior executive responsible for overseeing the day-to-day activities of a department or an entire organization. They bridge the gap between high-level vision and practical execution. They are experienced leaders who can adapt to various challenges while maintaining focus on both short-term performance and long-term growth.

The general manager’s function varies significantly depending on the size, structure, and industry of the business. In smaller companies, a GM might handle everything from operations to customer relations. In larger corporations, they may focus on specific, smaller business units or geographic regions.

Duties & Responsibilities of a General Manager

So what does a GM do?

Let’s first examine the roles of a General Manager versus a CEO. The manager fills in the gaps between the CEO’s duties. If the CEO is on the road, the GM remains to monitor the daily operations. The general manager can serve as a sounding board—a trusted resource for alternative solutions and an operations specialist who thrives in chaotic environments.

But that’s not all a GM does. Here are a few other key roles of a General Manager.

1. Developing and Implementing Strategies

General managers translate the CEO’s goals into actionable plans. They develop comprehensive strategies that align with the organization’s values. This involves creating roadmaps, setting measurable objectives, and establishing timelines for all initiatives.

2. Overseeing Day-to-Day Operations

The GM role manages all aspects of daily business activities. This includes monitoring schedules, ensuring standards are met, managing inventory, and coordinating between different departments. General managers must maintain efficiency while identifying opportunities for improvement.

3. Monitoring Market and Industry Trends

Staying ahead of market developments is crucial for maintaining a competitive advantage in the marketplace. General Managers continuously analyze industry trends, competitor activities, and emerging opportunities. They gather intelligence from reports, customer feedback, and other sources to proactively respond to changes in the market.

4. Developing and Maintaining Relationships with Stakeholders

Managing stakeholders is essential for business success. General Managers cultivate relationships with customers, suppliers, partners, and internal teams. They represent the organization in crucial meetings, negotiate contracts, and resolve conflicts.

5. Ensuring Business Compliance

A company’s General Manager must stay up to date on relevant laws, regulations, and industry standards that impact their operations. They conduct regular audits and ensure that all employees understand their obligations. This responsibility includes workplace safety, environmental regulation, data protection, and financial reporting requirements.

6. Analyzing Data and Performance Metrics

It is the responsibility of the General Manager to review KPIs, financial reports, and internal metrics to assess business performance. They identify trends, spot potential problems early, and make informed decisions based on their analysis.

7. Developing a Positive Work Environment

Creating and maintaining a positive workplace culture is essential for employee engagement and productivity. General Managers set the tone for the culture through their leadership style, communication approach, and decision-making processes. They promote open communication, recognize employee achievements, and address workplace issues promptly.  Many people view the GM role as a highly organized technical expert.  The most advanced GMs are extraordinary leaders who are highly respected by their direct reports.  Successful organizations are people-driven businesses that are helmed by highly skilled, compassionate, and influential leaders.

8. Developing, Motivating, and Leading High-Performance Teams

Building and leading high-performance teams is an essential responsibility of the General Manager. This involves recruiting top talent, providing opportunities for continuing education, and creating an environment where team members can excel.

9. Managing Finances and Budgets

Part of the GM role is managing budgets, controlling costs, and ensuring profitability. They monitor expenses and make decisions about where resources should be allocated.

10. Risk and Crisis Management

Identifying and mitigating business risks is an ongoing responsibility of the General Manager. When crises occur, a General Manager must respond quickly and effectively. This requires strong problem-solving skills, the ability to remain calm under pressure, and excellent communication.

Requirements for a General Manager

The personality and cultural fit between a General Manager and the existing team is crucial for success. This role presents a unique opportunity to establish a mentor-mentee relationship that benefits both the GM and the CEO, as mutual growth strengthens the entire organization.

Qualifications and Skills 
for the GM Role

A candidate for the GM role usually has strong qualifications, including an educational background in business administration, management, or a relevant field. An advanced degree, such as an MBA, is preferable, and a long history of relevant work experience is essential. Look for candidates with at least 5-7 years of experience in senior management.

In terms of technical skills required for the job, a General Manager should possess expertise in project management, financial analysis, and industry know-how, along with knowledge of any relevant software. Strong written and verbal communication skills are a must.

Personal Attributes for Success

Where General Manager skills are concerned, successful GMs should demonstrate exceptional emotional intelligence, helping them navigate interpersonal dynamics and build strong relationships across all levels of the organization.

A few other qualities of a General Manager include the following:

• Insightful: They can provide unique insight into different aspects of the company.
• Timely: They are two steps ahead of any potential industry issues, market shifts, or supply-chain problems.
• Connected: They maintain and leverage their professional networks.
• Adaptable: They are comfortable with change.
• Resilient: They maintain optimism in the face of challenges.
• Passionate and Compassionate:  They are servant leaders who can find and extract the best of their team.

Exceptional General Managers demonstrate strategic thinking combined with operational excellence. They can see the big picture while still paying attention to essential details. This dual perspective enables them to make progress toward long-term goals while ensuring that daily operational needs are met.

When to Hire a General Manager

Here are a few key indicators that it’s time to hire a General Manager for your small business.

1. You prefer to be “in” the business of creating, manufacturing, or selling rather than working on the daily minutiae of running an organization. Your expertise and passion are better utilized in areas where you add the most value instead of managing more minor details.
2. You plan to sell the business in a few years and want to determine the true ROI once you have adequately staffed it. Hiring a General Manager can help establish processes that showcase your company’s value when properly managed.
3. You need someone to course-correct the ship you’ve created because you’ve been in it for too long. Sometimes being intimately involved with every aspect of your business can create blind spots. A skilled General Manager brings fresh eyes and can identify opportunities that you might overlook due to your proximity to day-to-day operations.
4. You’re having difficulty scaling. When your business reaches a point where informal communication and processes no longer suffice, a General Manager can implement structure with new systems and procedures that support continued growth.
5. You’re approaching burnout. If you find yourself working long hours with diminishing returns, a General Manager can help reduce your workload while maintaining business performance. When you need a mental break, your GM can pick up the slack and continue to deliver for your customers.

The Bottom Line

The right General Manager will bring professional expertise that can transform your organization, allowing you to focus on what you do best. The decision to hire a GM should be viewed not as relinquishing control of your business, but as a strategic move that will help you reach your goals.

Hiring a General Manager is a critical investment in the future success of your business. A business coach can help guide you through the hiring process to ensure you select the right candidate. Click here to schedule a free video call with me to discuss how to hire a General Manager.

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Coach Dave