Best Practices for Preparing Board Documents
Board documents are an important source of information for making crucial decisions that keep a business on the right track. A member of the board can become overwhelmed by too many details and this can cause poor decision-making. However, a board with too limited information may not be able to grasp important insights or lose control of their business. To avoid this, the board members should have access to reliable and complete information that is well-organized and easy to digest. This article discusses the best practices for creating efficient board documents that meet these requirements.
Effective board papers contain the most current and pertinent information that is directly related to the strategic decisions being made. They are simple and concise, using a formal business writing style and refraining from technical terms. Information should be tailored for the specific needs of each director, because boards have different backgrounds. Marketing jargon for example, is not relevant to finance professionals. If you’re creating board documents make sure to include the glossary of terms for any specialized words or acronyms to ensure clarity for all readers.
The board should also establish its own standards and guidelines for the creation of documents. This includes using templates and preferred swrc2.info options for fonts, as well as the creation of an appendix for sharing sources or providing additional details. The board should also create the rules for a meeting’s quorum and the number of directors required to hold it. This will ensure that all directors have the opportunity to be heard and participate.
Boards should distribute board meeting materials in advance to ensure directors have enough time to read them prior to the meeting. A week is generally an ideal time to ensure that directors have ample time to study the documents and make preparations for the meeting.
