Colonels of the Chemical Business

The strengths and weaknesses of a business are to a large extent a reflection of the strengths and weaknesses of the people running them. It is possible to standardize and depersonalize many aspects of a business.  Accounting systems come to mind. There are benefits to be derived from rigid protocols for financial transactions, for instance.  Purchasing and sales transactions are managed by accounting software straight from the old testament. Records of all actions involving the transfer of funds are visible from a hike down the audit trail. Wreckless use of funds or a whole range of malfeasances can in principle be found by independent auditors.

In contrast to the rigidity of business accounting systems is the fuzzy world of business development.  Business development is a type of activity that combines purchasing, sales, and marketing.  It has elements of project management down to some level of detail within the organization.  Generally, business development managers are fairly high level managers who are chosen for certain attributes.  Not least among the virtues are unflappable self-confidence, a nimble sense of decorum, and educated but nonthreatening countenance.

Business development people are charged with attracting new business.  Where this differs with sales managers is that new business may be custom or cutting edge in some fashion. It is not likely to be plug-n-chug.  Process development resources will have to be committed.  

In the chemical business, a business development manager is likely to be very technically oriented. Where this differs from a “straight” sales person is that a business development person will be able to engage the potential customer in highly detailed technical discussions with the customers project management staff as well as strategic discussions with upper level management.  The ability and authority to seamlesly represent the company from technical issues to business agreements is the range of the business development manager.  Very often they are corporate officers at the VP level or above. This means that they can commit the organization.

Getting the business is only part of the job.  In the fabulous world of chemicals, a new product often means that new supply chains for raw materials must be secured. Some new raw materials will be existing items of commerce. Others may require custom synthesis.  Business development people may be involved on the buy side if for no other reason than to assure continuity and timeliness. 

In order to engage a custom supplier of a raw material, disclosure of confidential material may have to be done.  Furthermore, meetings between senior managers may be necessary to initiate the process of taking the supplier to the first step by supplying a proprietary procedure to obtain samples and commitment from the supplier. The business development manager is an obvious choice to take the lead in the procurement of key raw materials, at least initially.

Business development people are on the road a good share of the time. They attend trade shows, conferences, customer visits, and other public speaking venues.  They are often seen as the face of the company.  

What is perhaps not widely appreciated is the negative side of the business development job.  The high profile of the job means that you’ll report to inscrutible executives with all of the second guessing and intrigue that goes along with life at that level. You’ll have a big target on your back and people will be gunning for your job.  The job carries many heavy responsibilities, including the possibility that you’ll bring a dangerous piece of business to the facility. Even if you don’t blow up the plant or injure someone, problematic products or those with lower than anticipated margins can garner unfavorable attention. Presidents and CEO’s tend to forget the 10 great products against the glare of the one dog you brought in to the plant.

Leave a comment