Managing Principal vs. Managing Partner: What Are the Differences?

In business, there are many different types of management positions. Two common titles are managing principal and managing partner. While both of these roles involve overseeing the work of others, there are several key differences between them. In this article, we compare and contrast these two management positions, and we provide tips for choosing the right title for your career.

What is a Managing Principal?

A managing principal is a high-level executive who is responsible for the overall management and operation of a company or organization. They are responsible for setting the strategic direction of the company and for making decisions about how to allocate resources in order to achieve company objectives. The managing principal is also responsible for ensuring that the company complies with all relevant laws and regulations. In some cases, the managing principal may also be the owner of the company.

What is a Managing Partner?

A managing partner is a position found in various types of businesses, such as law firms and accounting firms. In these types of companies, the managing partner is responsible for the management and day-to-day operations of the firm. This includes setting the strategic direction of the firm, making decisions on financial matters, hiring and firing decisions, and supervising other partners. The managing partner is also typically the face of the firm to the public and is responsible for marketing and business development initiatives.

Managing Principal vs. Managing Partner

Here are the main differences between a managing principal and a managing partner.

Job Duties

Managing principals oversee the entire firm and make sure it functions properly. They perform administrative tasks, such as writing and revising company policies and procedures. They also manage budgets and ensure all departments work together effectively.

Managing partners have specific duties related to the firm’s operations. They’re involved in making decisions about a particular project or campaign and provide direction to the team managing that project. Managing partners may also help with hiring and firing employees and delegate tasks to other managers.

Job Requirements

Managing partners and managing principals typically need a bachelor’s degree in business administration, accounting or another related field. They also need to have several years of experience working in management roles at their respective firms. Some managing partners and managing principals pursue master’s degrees as well, such as a Master of Business Administration, to help them stand out to potential employers.

Work Environment

Managing principals work in an office environment, often spending their days at a desk or on the phone. They may travel to visit clients and attend meetings with other professionals. Managing partners typically spend more time traveling than managing principals do, as they need to meet with clients and oversee projects. They also have more responsibilities than managing principals, so they may work longer hours.

Skills

The specific skills used on the job by a managing principal or managing partner can vary depending on the organization they work for. However, both roles typically require excellent interpersonal and communication skills to interact with clients, employees and other partners in the firm. They also need to be able to think strategically to make decisions that will benefit the firm in the long term.

Organizational skills are important for both managing principals and managing partners, as they often oversee multiple departments or initiatives at one time. They also need to have strong financial skills to develop budgets and track the financial performance of the firm. Finally, both roles may benefit from having marketing and business development skills to help generate new leads and grow the business.

Salary

The average salary for a managing principal is $143,328 per year, while the average salary for a managing partner is $124,458 per year. The average salary for both positions may vary depending on the size of the company, the location of the company and the level of experience the managing principal or managing partner has.