Board documents are a vital source of information that can be used to make key decisions to keep a company on track. A board member could be overwhelmed by the volume of information, which can cause poor decision-making. However, a board with too little information could miss crucial insights or lose control over their business. To avoid this, board members should have access to accurate and comprehensive information that is easily digestible and well-organized. This article provides the best practices for creating efficient board documents that meet these requirements.
Effective board documents contain the most up-to-date and relevant information that is directly related to the strategic decision in question. They are concise, clear and have a formal business style. They avoid jargon and technical terms. Boards come from different backgrounds, so the information should be tailored to the individual directors requirements. Marketing jargon, for instance is not applicable to finance professionals. If you are creating documents for boards, you should include a glossary of any specialized terms or acronyms. This will ensure that all readers can comprehend the document.
The board should also set its own standards and guidelines for preparing documents. This includes using an outline template and preferred choices for fonts, and the creation of an appendix for sharing sources or providing additional information. The board should also create the rules for a quorum at a meeting and the number of directors needed for the meeting to hold. This will ensure that all directors have the opportunity to be heard and participate.
Boards should disseminate their board meeting documents well in advance to allow enough time for directors to go through them before the meeting. A week is a great time frame to allow directors plenty of time to study and prepare for the meeting.