What is an Executive Board? (Overview, Roles, and Responsibilities)

Generally, an executive committee oversees strategic planning and business activities and makes decisions in the organization. However, the specific responsibilities differ as they are detailed by the organization’s corporate laws.

The most common responsibilities include:

1. Provide Strategic Direction

Strategic direction is essential for a company to experience growth, as it helps determine its objectives and plans to achieve its goals. The executive committee usually develops and ensures the implementation of strategic plans.

The strategic direction may be in the form of analyzing or creating:

• An ideology that will be the company’s core belief to define the company’s purpose
• Principles that guide the work ethic of all team members in the organization to ensure uniformity and standardization
• Vision to help modify business plans and strategies to achieve the desired outcome
• A long-term business strategy to help stay on track, including using board management capabilities to achieve more and reduce complexity
  
  

2. Support Business Goals and Objectives 

An executive committee ensures business strategies and plans are implemented and followed. A business will achieve its primary goals and objectives through good governance and progress evaluation completed by the executive board.

Executive committees conduct thorough research on new strategies and investments to mitigate risks and unseen competition. The executive board makes sound decisions to support upcoming goals and objectives.

3. Manage Budgets

Budgeting is the foundation of any business’s success, as it ensures the organization has enough financial resources to meet its goals. A financial plan created by the executive board should be given to all departments that directly work with finances, including the accounting office and marketing board.

Forward communication with other departments ensures transparency and honesty, helping the business have an updated record of the cash flow for better planning and budgeting.

4. Oversee Personnel

Each business has its designated chain of command, with the executive board being the bridge between the management and the board of directors. The executive committee oversees activities, such as human resource and regulation, security guidelines, and quality management.