The board’s mission is the big picture item, setting the course for the whole company. Now, you might be thinking, “Where does finance fit into this grand
mission?” But really Finance is heavily intertwined with the mission, it’s actually what helps turn that mission from words on paper into real-world achievements.
Think of the mission as the destination on a map. Finance? It’s the compass and the fuel gauge all rolled into one. It helps the board chart a realistic course by assessing the financial viability of different strategic directions. Can the company actually afford to pursue this mission? What resources will it require? Finance provides the answers, ensuring the ambition is grounded in reality.
When it comes to executing the mission, finance is the engine that keeps things moving. It involves allocating capital effectively, managing cash flow, and monitoring performance against financial targets. It’s about making sure the resources are in the right place at the right time to drive progress towards those overarching goals. Without a strong financial framework, even the most inspiring mission can stall.
Furthermore, finance provides the metrics to track progress. How do you know if the board’s initiatives are actually working? Financial reports offer tangible evidence of success (or areas needing adjustment). They allow the board to see if their decisions are translating into the desired outcomes, making the mission not just a statement but a measurable journey.
Ultimately, finance isn’t about putting constraints on the mission; it’s about empowering its realisation. It provides the framework for sustainable growth and ensures that the board’s vision can be executed effectively and efficiently. By understanding the financial implications of every decision, non-finance board members can contribute even more strategically to shaping and achieving the company’s ultimate purpose. It’s the practical magic that turns aspirations into accomplishments!
