Board documents are a vital source of information for making crucial decisions that keep a company on track. Too much information can overwhelm members of the board and result in poor decision-making. Likewise, too little information means the board is missing crucial insights or may lose control over the business. To avoid this, board members must have access to comprehensive and accurate information that is easily digestible and well-organized. This article provides best practices for creating effective documents for boards that comply with these requirements.
Effective board papers include the most relevant and timely information that directly relates to the strategic decisions being made. They are concise, clear and have a formal business style. They do not use jargon or technical terms. Information should be tailored for the specific needs of each director, because boards come from different backgrounds. Marketing jargon for example is not applicable to finance professionals. If you’re writing documents for boards, you should include a glossary with any specialized terms or acronyms. This will ensure that everyone are able to comprehend 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 and selecting the preferred fonts and creating an appendix to share resources or provide additional details. The board should also define the rules for a quorum as well as the number of members needed for a meeting to be held, ensuring that all directors can participate and be heard.
Boards should distribute meeting materials in advance so that directors have ample time go through them prior to the meeting. A week is a good period to allow directors ample time to read and prepare for the meeting.