Monitoring business performance
Your Board and advisors absolutely must monitor and analyse how your company performs over time, including:
- Your business’s performance, financial position and profitability projections for the future
- Cash flow forecasting to ensure that trading is smooth, as well as access to funding as-needed
- Overseeing marketing, personnel, sales, and operations to determine where a change in strategy may be needed
The Board assesses how your organisation performs and meets objectives in operations, strategy, and finance. It works to help set priorities, ensure that the company executes and follows through on approved plans, and meets objectives in a timely manner.
As many organisations have a number of data points that can be used to measure overall performance, such as financial metrics, industry trends, and peer data, the Board must create a consistent process to acquire, assess, and make use of the best data available. This information can be sourced from Board reports, surveys, audit opinions, industry benchmarks, and financial statements. By doing so, your Board can best understand how your business’s performance, as well as what potential issues you may face as you grow.