Are Your Board Materials Highlighting What’s Really Important? Download Board materials have long been an issue, from their length to lack of conciseness. What makes this issue one to address with intention is the current competitive, digital and data-driven environment, which leaves less time to make decisions due to the pace of change.Directors want more strategic emphasis and less operational detail in boardroom prep materials and discussions. Yet, we continue to hear board members express the view that materials they receive for, and in, scheduled meetings are voluminous to the point of obfuscating what’s really important. Various studies make it clear that directors want to read concise, compelling materials, listen to crisp presentations and engage in strategic conversations with management on the topics that matter. Yet, concerns about board materials persist.So, why does management continue to inundate board members with noncritical information. Could it be the classic lack of understanding the audience? Inability to separate the details from the crux of an issue? A cultural emphasis on transparency, i.e., to provide all available information in the interests of full disclosure, without regard to importance? Or board-facing executives leveraging materials used internally rather than repackaging such materials with intention to present content in a focused and concise manner? Download Regardless of the reasons, addressing this issue is a two-way street. In the end, it is about knowing the audience. What do the directors want? What are their preferences when absorbing information? Do they prefer visuals or text or both? Would it be useful to provide distinctive headings, simple language, consistent formats and explanatory narratives alongside graphs and tables? Board report preparers should be guided by a framework that is responsive to the content and tone desired by the board.Getting the answers begins with the CEO, who is ultimately responsible for effective communications with the board. The board chair or lead director also has the responsibility to ensure that meetings are well planned and supported with quality materials. To maximize value contributed from independent directors, it is in the CEO’s best interest to listen to director feedback on improving boardroom discussions and engagement and address that feedback in a positive, constructive manner. It is in everyone’s interest for directors to consider meetings to be stimulating and productive.This issue offers six steps to help board leadership and the CEO keep board meeting agendas and supporting materials fresh and relevant. It provides suggestions toward channeling the board’s energy and effectiveness as strategic advisors as well as offers a discipline for excellent board operations through a shift from presentation to collaboration that is respectful of the sanctity of the time of board members.The bottom line: Voluminous materials are not fit for purpose in today’s competitive, digital and data-driven world, as they force board members to use their own personal filters to sift through the information provided to identify what they believe to be relevant. Providing focused, concise, forward-looking and balanced on-strategy materials with actionable insights to directors will facilitate effective board meetings. It also speaks highly of the management team.(Board Perspectives — Issue 184)Listen to our Board's Perspectives podcasts, which provide practical insights and guidance for new and experienced board members alike. We want to hear from you!What topics would you like to read about in the coming months?Let us know Click here to access all issues Learn More Leadership James W. DeLoach Jim DeLoach has more than 35 years of experience and assists companies with responding to government mandates, shareholder demands and a changing business environment in a cost-effective and sustainable manner, including the integration of risk and risk management with ... Learn More Topics Board Matters Business Performance
