Finance training for directors is important as finance is the lifeblood of all organisations. Directors and Executives need financial know how in order to make a difference in their organisation. It has been common practice for many directors to neglect financial information due to their lack of financial understanding.
This can be detrimental to the growth of an organisation. There have been instances where I have noticed directors struggling to contribute in an attempt to understand key financial measures. The effectiveness of decisions is questionable and core components and signals ignored or misunderstood.
There are many financial workshops for directors which focus on board level contribution of directors. I would like to share a few key insights for directors and executives in order to gain the much needed financial training for Directors.
Financial personnel: The first place is obviously to learn within your organisation. You can easily approach your Chief Financial officer...
For decades the primary responsibility of the board of directors for many companies was to serve as a conduit between the executive team and the owners/shareholders. In this capacity the board of directors was tasked with communicating the best interests of the shareholders to the executive team, which then allows the executive team to formulate a strategy for executing the company in a way that allows the shareholders to prosper.
While the board of directors was capable of voting in executives, and the executive team had to include the board into major decisions, many executive teams were given carte blanche to run the organization. The issue is that like a democratic government, no one entity should have free reign over the management of the organization, because invariably the interests of the owners will ultimately be overshadowed by the interests of the executive team’s vision.
In these situations the executive team IS NOT...
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