Engaging a business development director is, in someways, similar to the process of finding a good non-executive director.
A good business development director must be able to understand quickly your company’s aims, objectives, products and services, have access to any and all research and become privy to the directorate’s development planning.
Look for independence of spirit, but avoid appointing someone who wishes to work independently and for more than one client – a business development director must be fully focused on developing your company.
Do not appoint a sales person with attitude. Appoint a strategic thinker with a proven track record of implementing marketing, public relations and communications initiatives and projects.
Avoid being impressed by people from a big-name corporate. Do they have the multiple skills and mindset required to deal with the many aspects of a project, and the ability to work solo as well as within a small team, most likely on a small budget?
Decide what you want from the relationship and the outcomes you wish to achieve in the short, medium and long term. The abilities of a business development professional to think strategically and see the wider picture are of great significance but are often overlooked by too much focus on the fine detail of a specific functional role.
Start by analysing the skills and experience required to strengthen the existing team. The business development director will reflect your company’s image, so do not be afraid to aim high in the quality stakes. Look for “agents of change” and give them the opportunities to bring about beneficial changes – involve the board from the outset to minimise resistance.
Check that the business development director does not have any conflicts of interest in working with your company.
If you are worried about the cost of engaging the best person for the job and cash is tight, consider utilising shares.
Ensure the fee is appropriate for the amount of time committed. Get good value by ensuring the business development director is used correctly and that he or she contributes fully – plan his time with you, and ensure he is provided with adequate resources and support.
Create mutually agreeable objectives and measured performance but recognise that much of his contribution may not be visible in the short term. An ineffective business development professional can be more of a problem or distraction than simply an addition to the overheads.
Approach the arrangement in a professional way. Do not offer ridiculous commission-only and share-option contracts and hope for a quality candidate and one with loyalty.
Length of appointment must be discussed at the outset– anticipate a two to three-year contract. There should be a formal review plan with the understanding that the business development director should be the engine driving the business forward, the chief executive is the driver, the chief finance officer is the money-holding, clock-watching passenger, and the company secretary watches for roadsigns.
A business development director should be a core part of the management team or directorate and, should the company expand, should not be replaced casually with separate experts once targets are met. On the other hand, a business development director who is successful with small and medium-sized enterprises may not be so successful once a company grows to a larger, corporate size, therefore detail your agreement of appointment with short, medium and long-term vision.
A business development director can make a real contribution and represent excellent value for money – he or she is often worth two or more specialists owing to expertise invarious disciplines.
As with any senior appointment, time and effort spent on appointing the right person will reap dividends. Obviously a mutually rewarding relationship is the aim.