In this section, we will explore more about Executive Management Committee roles and responsibilities. Continue reading to know more about the topic.
What is an Executive Management Committee?
An Executive Management Committee is a subset of the Board of Directors. With all its members being top-level executives at the organization, the committee meets regularly to discuss strategies, issues, and problems. It is responsible for directing the day-to-day operations of the organization.
What are Executive Management Committee Responsibilities?
The most important responsibility of an Executive Management Committee is to ensure that the organization’s strategy is implemented properly. The committee also reviews and approves strategic plans of the organization.
Moreover, it reviews the financial statements prepared by the management regularly. Additionally, it reviews budgets prepared by the management team regularly.
What are Executive Management Committees Roles?
The roles of an Executive Management Committee are as follows:
Budgeting
The role of an Executive Management Committee in budgeting is to approve the organization’s budget.
The budget is prepared by the management team of the organization and reviewed by the Executive Management Committee. After reviewing the budget, the committee approves it and authorizes the management team to implement it.
Continue reading to know more about how an Executive Management Committee ensures that the organization’s strategy is implemented properly.
Strategy Implementation
The role of an Executive Management Committee in strategy implementation is to ensure that the organization’s strategy is implemented properly.
At least once a year, the management team prepares a strategic plan for the next year and presents it to the committee. After reviewing the plan, the committee either approves or rejects it depending upon its feasibility and efficiency. If approved, the committee authorizes its implementation by giving specific directions to various departments and divisions of the organization.
Budget Monitoring and Evaluation
The role of an Executive Management Committee in monitoring and evaluating budgets is to assess whether or not the organization’s performance is against approved budgets.
Many times, after approving budgets, organizations find that they are overspending on certain activities while under-spending on other activities. When such situations occur, Executive Management Committees evaluate such deviations and take corrective measures if needed. This is also referred to as revision of budgets.
Approving New Business Ventures/Acquisitions
The role of an Executive Management Committee in approving new business ventures or acquisitions is to evaluate whether or not proposed ventures or acquisitions are cost-effective for the organization.
Organizations undertake many new business ventures every year with a lot of risks involved. Therefore, organizations need to evaluate them carefully before making any decision regarding their implementation. The role of an Executive Management Committee here is to review these proposals carefully before approving them for implementation.
Strategic Planning
The role of an Executive Management Committee in strategic planning is to approve strategic plans presented by management teams at regular intervals (usually once a year).
A strategic plan consists of three parts: mission statement, organizational structure, and objectives that the organization intends to achieve within a specified period. After approving the strategic plan, the committee then gives directions to various departments and divisions of the organization regarding how to implement it.
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