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Is a VP Position Higher Than a Director?

Different companies have different titles for their employees, whether senior management or C-suite. So understanding the roles and hierarchy can be confusing and daunting. And yet, understanding the roles of your seniors is critical. Among the top management positions, the vice president or VP and director are often misunderstood for the work they do, their responsibilities, etc., while both are, in fact, usually considered senior management.

Read: Roles of Vice President and General Manager

First, it is important to understand what each title means.

VP vs Director

What is a Director?

Typically a director heads a department or a vertical. They lead managers who have teams under them. They are also usually restricted to a particular area of function in larger companies, while smaller companies might have a general director who leads managers of all departments since there might not be multiple managers in each division to manage. But being on the ‘board of directors’ has a completely different meaning. That kind of director is above the vice president and the C-suite as well.

MIT AI AND ML: LEADING BUSINESS GROWTH

What is a Vice President?

On the other hand, a VP or vice president is one of the top 2 or 3 leaders of the organization. In some instances, their position depends on the other top-level positions, but in most companies, the VP manages the overall functioning of the company. They also are usually in charge of implementing new policies and strategies that work towards the goals of the company and meet with the board of directors regularly. While this might be the role of a VP at mid to large-size companies, even larger companies might have a vice president for each department. The heads of each department might be titled vice president. In which case they probably have multiple positions above vice president as well, such as assistant VP or senior VP.

Director: roles and responsibilities

Since a director manages a department in a company, their roles vary depending on the department. However, there are some common responsibilities;

  • Leading managers and overseeing their projects
  • Reviewing employee performance
  • Developing new policies and strategies for their department
  • Implementing departmental policies changes
  • Developing department budgets, sales, and sometimes even payroll
  • Making sure things run smoothly

Vice President: roles and responsibilities

A vice president’s role is a little more dependent on the size of the company and the company itself. Keeping those factors in mind, in some companies a VP works as an assistant to the CEO when implementing strategy and policy. In other companies, a vice president’s duties are such as;

  • Overseeing daily activity and productivity
  • Maintaining the company’s public image in the media
  • Illustrating overall budgets and goals for the director and managers
  • Working with the CEO and board of directors to uphold the company’s policies, strategies, and goals
  • Leading the company’s internal culture
  • Constantly reviewing the company strategy and innovations to make sure it’s beneficial for the company

Difference between VP and Director

In most companies that have both VP and director positions, the vice president is the director’s direct senior. In some companies where there are levels within the vice presidency, that might vary. But the vice president is at a higher position in a company that has both. So typically, a vice president will discuss company goals with the board and CEO and develop a strategy and policies for the director and their team to implement. In terms of salaries too, vice presidents take home a larger sum than directors.

Salaries of VP and Director

As of March 2022, according to Indeed the average base salary for a VP in India is ₹13,92,902 per year. While the average base salary for a director is reported to be ₹2,17,637 per year.

For the most part, in most companies, directors have a more tactical job, while vice presidents function more strategically. Directors usually report to the VP, who sets targets and goals for the director to implement by guiding and directing their team of managers.

Executive Education

As vice president is an executive position and at this position there are certain programs that supports you in your position. Here are some of these programs.

Berkeley Executive Program in Management (Berkeley EPM)

The Berkeley Executive Program in Management (Berkeley EPM) is a general management program that prepares you for the next level of leadership. This program is created in such a way that it helps transform proven leaders into global executives ready to lead the charge. The Berkeley Executive Program in Management encourages its participants to reflect, enhance strategic thinking, and develop authentic leadership. It is designed to create an immersive, relevant, and dynamic learning experience for senior executives, ready for the next level of the leadership challenge. It includes modules on advanced management competencies, leading innovative change, etc., which are a must for a person in C-level positions, to ensure the growth of the company.

BERKELEY EXECUTIVE PROGRAM IN MANAGEMENT

MIT Professional Education Technology Leadership Program (TLP)

This is a multi-modular program delivered by MIT faculty on campus and virtually, geared towards the development needs of the next generation of technology CEOs, CTOs, CIOs, and emerging leaders.  The program is designed for technology leaders and experienced practitioners from large corporations as well as startups—innovation-oriented firms that are focusing on leveraging emerging digital technologies to remain relevant and competitive in the marketplace. After completing TLP, you will be part of a cohort of global leaders and practitioners. You will also become an integral part of the global MIT Professional Education network and will be considered an alumni of TLP as well as MIT Professional Education.

MIT Professional Education | Technology Leadership Program

UCLA Post Graduate Program in Management for Executives (UCLA PGPX)

It is an extensive general management program offered by the UCLA Anderson School of Management, one of the world’s top business schools. It is a part-time program with a modular format that provides great flexibility for busy professionals, while the UCLA faculty and industry leaders ensure that the program covers all aspects of best-in-class management education expected from a highly respected and globally renowned institution. The UCLA PGPX will put you on the map of global leadership with a combination of strategies, skills, and acumen that will stretch your thinking and hone your abilities as a leader and manager capable of achieving remarkable growth in your business. This program has been designed to expose the participants to management and business leadership essentials in an extensive general management curriculum that is designed to be experiential in learning and applied in focus.

UCLA PGPX

Chicago Booth Accelerated Development Program (ADP)

The Chicago Booth ADP is a rigorous learning journey across 8 modules spread over 9 months and gives you access to the latest management thinking and tools. It is taught by an award-winning faculty at the Chicago Booth School of Business and accomplished senior business leaders. It creates an amazing opportunity to build a strong personal brand and competitively position yourself and your organization. ADP actively engages you in a collaborative learning environment with accomplished peers in . The Chicago Booth Accelerated Development Program is designed for the global executive with a focus on delivering impact and leveraging the significant history of the Accelerated Development Program delivered across the globe. The program is tailored for the busy schedules of senior professionals and is blended in design, with academic on-campus modules and off-campus experiences with online learning and live interactions to complement the on-campus experiences. You will build a global community of like-minded leaders and will become part of the Global ADP Network for life.

Typically a director heads a department or a vertical. On the other hand, a VP or vice president is one of the top 2 or 3 leaders of the organization. So usually the director reports to the VP.

Directors usually have a more tactical job, while vice presidents function more strategically.

There are various executive education trends in 2023 such as application based learning, innovative thinking, and management and leadership skills. Read more about Top Executive Education Trends in 2023.

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