What is the primary responsibility of a Board of Directors or company owner?

The primary responsibility of a Board of Directors or company owner is to ensure that the General Manager fulfills their contract. This responsibility involves overseeing the strategic direction and overall performance of the company, and it includes ensuring that the executives are meeting their contractual obligations and performing their duties effectively. The Board holds the General Manager accountable for the execution of the company’s strategy and objectives, ensuring that the organization operates within the framework established by the owners.

In this role, the Board provides guidance and oversight, but it does not typically get involved in the daily operational management of the company. Instead, they rely on the General Manager and other executive leaders to handle the day-to-day operations, which differentiates their role from that of management. Additionally, while the Board may be involved in broader aspects of human resources like hiring top executives, the day-to-day hiring of employees is usually the responsibility of management.

Therefore, ensuring that the General Manager fulfills their contract encapsulates the Board's responsibility to maintain accountability and support the leadership in achieving the organization's goals.