TheCorporateCounsel.net

Boards are certainly not lacking on “data” these days. In fact, one of the most challenging aspects of working with boards right now is sorting through all the possible information & data points in order to pinpoint what is actually helpful and decision useful. Despite all the blood, sweat & tears that go into preparing board materials, I recently heard one director share that he felt he was “wading through mud.” So, it sounds like there’s still room for improvement.

This report from Board Intelligence and NACD shares practical ideas for striking the right balance between context & information overload, and between reviewing the last quarter’s corporate performance & considering what’s ahead. Here are the top 3 “board pack critical thinking gaps,” according to directors:

1. Too operational at the expense of strategy

2. Too internally focused, with little insight into the wider market

3. Light on the implications of the information presented

To close those gaps, the report recommends asking these questions about the board materials before they go out:

– Does each report address the key questions that are on directors’ minds?

– Do reports provide a balanced analysis, giving a forward-looking view as well as looking backward, and considering the internal and external context?

– Does management offer actionable insights by answering two key questions in their reports: “What are the implications?” and “What will we stop, start, or do differently as a result?”

– If management is using slides to share information, are those slides sufficiently detailed or accompanied by a memo so they can be easily understood without a voice-over?

– Is each report tailored to the board’s specific needs and sufficiently strategic?

– Is the board pack shared in a timely manner to allow sufficient review and meeting preparation?

– Liz Dunshee