Did you know that more than half of corporate directors report three or more areas of concern within their board packs? Let’s address some of these concerns by offering easy solutions to the five most common mistakes in board packs.
1. Problem: Too much info, too little insight
Solution: Report writing training
When writing a board paper, managers need to put themselves in the shoes of their audience. Board members don’t just want an update on what’s been happening in the organization — they want to know the “why?” and “so what?”.
Effective board papers cover the context, facts, and figures in as few words and data points as possible, focusing their attention on what’s driving the results and the implications for the company. However, this is easier said than done, as not many managers have been trained in how to write (or present data) holistically and succinctly in a business context. Short training courses on how to structure information, including journalistic tips and tricks, can make all the difference.
The briefing process is an essential but often overlooked step in preparing board papers. Report writers need to be clear on the specific questions that the board needs answered. Structuring the report around these questions will ensure the paper focuses on what matters, without critical gaps or irrelevant information. Before your writers get started, encourage them to sit down with their paper sponsor and agree on the brief — in particular, the purpose of the paper and the high-level questions to be addressed.
2. Problem: Too backward-looking
Solution: Ask the right questions
Many report writers need to change their mindsets and step away from the comfort zone of retrospective financial metrics and KPIs to present their view of what’s around the corner. Managers need to focus on the underlying drivers of the business to explore what may be about to happen rather than focus on what has already happened.
For a more forward-looking report, we recommend considering the following questions:
- What are the driving factors behind the results, and what does this mean going forward?
- What risks and opportunities are on the horizon, and what should be done about them?
- How confident are you in delivering the plan?
3. Problem: Too long and wordy
Solution: Be prescriptive about length
The average board pack is about 288 pages long, yet board directors only spend around three hours reading their packs — meaning they’re only reading about 100 pages. We recommend being both really strict about the length allowed for each paper. Three to five pages is plenty for almost any topic. In fact, some boards will automatically reject any paper that goes over the page limit. If you can combine a strict length limit with a clear brief, your board can avoid the pitfall of missing out on crucial information.
If the topic is complex and extra pages are needed, the report length should be agreed upon with the Chairman to avoid unnecessarily lengthy reports that can be commonplace in many board packs.
4. Problem: Lack of clear materiality
Solution: Better executive summaries
A good executive summary should tell the board why they are receiving the paper, how material the issue is, the main questions the report addresses, the main conclusions it draws, and what they should do next. We recommend using a template to ensure the board consistently receives high-quality executive summaries across the organization.
A well-executed executive summary is the most important part of every board paper. Asking a report writer to start by drafting the executive summary is a great way to check that they have properly understood the brief, before they spend time writing the body of the paper.
5. Problem: Lack of strategic discussion
Solution: Put decision and discussion papers on the agenda
This is really two solutions in one.
The first is to be strict about your planning and to start each meeting by addressing the items of most strategic importance. The best boards map out the most important discussions 6 to 12 months ahead and work hard to ensure time is kept aside for those items, even when urgent distractions arise. We recommend using our Six Conversations Model to identify the important discussions your board should be having this year.
The second is to ensure that when these items come to the board, they include a concise decision and discussion paper. This helps everyone involved understand the main issues before the meeting begins. A good way to do this is to plot out the decision criteria that matter most to the board for each type of decision and ensure that report writers focus specifically on answering those questions.
Now that you’re on your way to an improved board pack, the next question is — what does best practice look like? Sign up for one of our Best Practice Board Packs Uncovered roundtables to find out more.
In the meantime, if you want to discuss any of the solutions above or see how Board Intelligence could help your organization get the most from its board packs, get in touch with us today.