There are two things that are needed in the board package.

Most people usually focus on the first. Because they’re so busy taking care of the first item, they often end up blowing the second one. Two things that board members need from the board package:

1. Good information in the board package.

2. Enough time to review it.

It’s the second one that often falls short, although, certainly, the first one can fall short too, but that’s a subject for a different message. The focus on this article is about the second one.

So your board can be most effective, they need to be able to see the information in plenty enough time prior to the board meeting. To get the information on the spot at the board meeting or just a day before, it doesn’t give enough time to go over the material and give it the thought that it deserves.

I’d like to say in my career I’ve gotten out board packages all the time in the board members hands a week ahead of time. That hasn’t always happened. I’ve learned from experience.

How soon should it be in advance of the board meeting?
Check with your board members, see what they advise. I would generally suggest about a week ahead of time.

Now, one advantage we might have is email. You can save a day or two off the distribution time by having it go out via email. If you don’t have the email address for each of your board members, encourage that they give it to you. Some say they are hardcopy folks, convince them otherwise. Point out the benefit to them by getting the softcopy into their hands even sooner. They can still print it out and go hardcopy if they like.

When you set the board meetings can come into play for this too. Some companies may set board meetings after the end of a quarter. Give yourself enough space and time, so you’re finance area can have the numbers completed and get the materials to the board in plenty of time before the board meeting.

I suggest setting up a schedule for the distribution of the board package, just as you have a schedule for the timing of the board meeting. Having that schedule together gives you more discipline to help get the board meeting out.

So, what happens if you’re in a particular jam and you don’t have everything altogether that you’d like to have for the board meeting come the week ahead? Perhaps, take a hard look and see what you have to put together. What could be sent out to the board in hardcopy for them to go through and what could be sent as follow-up material shortly thereafter?

Also, work backwards from the distribution point. There are other deadlines prior to that distribution point that need to be met. For example, the board package might include a write up by the CEO. You don’t want to dump everything on the CEO’s lap at three o’clock and just give him an hour or give her a very short time to turnaround their narrative. Factor the different pieces into the schedule.

So, for more effective board meetings, remember the critical second part that’s essential to a good board meeting package. Get it there on time and you’ll get much more timely work done and decisions made during the board meetings.

   

Jon Paul, MBA, CPA, CMC, CM&AA

President, Value Added Finance Resources
Bringing new insights on results and maximizing company value