Board documents are a critical source of information that drives the crucial decisions that keep a company on the right track. A member of the board can become overwhelmed by the amount of information available, which can lead to poor decision-making. However a board with little information could miss crucial insight or risk losing control of their business. To avoid this, board members should have access to accurate and comprehensive information that is easy to digest and well-organized. This article outlines the best practices to create effective documents for board members that are in compliance with these guidelines.
Effective board papers include the most current and pertinent information directly connected to the strategic decision in question. They are concise and clear, using formal business writing and avoid jargon or technical terms. Boards come from diverse backgrounds, and therefore information should be tailored to each directors needs. Marketing jargon for example is not applicable to finance professionals. If you are creating documents for boards, you should include a glossary for particular terms or acronyms. This will ensure that everyone can understand the document.
In addition the board must establish its own internal guidelines and standards for preparing documents for the board. This includes using a template, selecting the preferred fonts and creating an appendix that can share sources or provide additional details. The board must also establish guidelines for the quorum of a meeting, and the number of directors required to attend the meeting. This will ensure that all directors have the opportunity to take part and be heard.
Boards should distribute their board meeting documents well in advance to allow enough time for directors to review them before the meeting. A week is a great time to allow directors enough time to study and prepare for the meeting.