Board documents are an important source of information for making key decisions to keep a business on the right track. The overload of information can overwhelm members of the board and lead to ineffective decision-making. Likewise, too little information means that the board isn’t getting crucial information or could lose control over the business. To avoid this, board members must have access to complete and accurate information that is easy to digest and well-organized. This article provides best practices for writing efficient board documents that are in compliance with these guidelines.
Effective board papers include the most current and pertinent information that is directly linked to the strategic decision in question. They are concise, simple and follow a formal style. They do not use jargon or technical terms. Boards come from diverse backgrounds, and therefore information must be tailored to the individual directors requirements. For instance, marketing jargon isn’t relevant for finance professionals, and vice versa. If you’re creating board documents, include a glossary for any specialized terms or acronyms. This will ensure that all readers can comprehend the document.
The board should also establish its own standards and guidelines for preparing documents. This includes the use of templates and preferred options for fonts, and the creation of an appendix sharing sources or providing additional information. The board should also set the rules for a quorum as well as the number of members needed to hold a meeting, making sure that all directors participate and be heard.
Boards should distribute board meeting materials before the meeting to ensure that directors have ample time examine them prior the meeting. A week is a good time frame to allow directors the time they need to study and prepare for the meeting.
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