Board packs rarely spark dinner table debate. But one question is starting to get governance experts talking: “What does a good board pack look like?”
It’s long overdue. For too long, board packs have been overlooked on the sidelines of the board effectiveness agenda. Without public discussion, many boards have accepted materials that at best are just “good enough.”
That’s starting to change. A “not too bad” board pack no longer meets the mark. Research by Board Intelligence and NACD, based on surveys and interviews with 500+ members, found that only 13% of corporate directors rated their board pack as “extremely effective.”
Last week, I was at a top business school’s governance program, and we talked about board packs. I realized just how infrequently my boards talk about this, and how overwhelming it can be for directors.
NACD member
What does the research tell us about the state of board reporting in US corporates?
This is the largest US study ever done on board packs. For the first time, it reveals how directors feel about their materials, and the results show big gaps.
Only 15% of directors said their board pack was “extremely effective” in supporting strategic discussion. Fewer than one in five (17%) said it effectively communicated key messages.
And 59% of directors reported three or more individual areas of concern within their board packs, ranging from overly operational content to backward-looking data and weak risk coverage.
Source: National Association of Corporate Directors and Board Intelligence 2024 survey.
What does a best-practice board pack look like?
After two decades of reviewing thousands of board packs across industries, from finance to mining, we’ve found three qualities that set the best apart:
- Focus: The board’s time is limited. A good pack helps directors focus on strategic-level topics, questions, and decisions.
- Critical thinking: Reports should offer clarity. They should be stacked with actionable insights, directly addressing directors’ key questions while also demonstrating management’s critical thinking.
- Great communication: Reports must be easy to read, concise, and compelling. Good writing makes it easier to absorb complex ideas and act on them.
When board packs meet these criteria, they deliver the information and insight that directors need.
How do you improve the quality of your board pack?
Knowing what “good” looksKnowing what “good” looks like is only part of the fix. Directors may not realize this, as they often don’t write the reports and don’t manage those who do.
So, what can they do? Are there any useful tools available to help?
Directors must start by working with the corporate secretary to set a higher standard. They should provide constructive feedback regularly using frameworks like the Best-in-Class Board Pack Checklist.
The best-in-class board pack checklist
Use this checklist to review your board pack and spot areas where improvement is needed:
- Is it clear why each report is being shared with the board, and why now?
- Does each report connect clearly to strategic goals?
- Has management stated exactly what they want from the board?
- Does each report summarize key actions with owners and deadlines?
- Does each report answer key questions posed by directors?
- Does each report offer a balanced perspective with future and past considerations and internal as well as external context?
- Does each report provide insight by answering: What are the implications? And what will we stop, start, or do differently?
- If slides are used to share information, are they detailed enough, or is the information supported by a memo that makes it easy to grasp alone?
- Is the content tailored to the board’s needs and strategy?
- Is the pack delivered early enough to allow proper review and preparation?
- Are key messages stated clearly at the beginning of each report?
- Is the content structured, with clear logic and headings?
- Is the writing clear, engaging, and easy to follow?
- Are charts or tables accompanied by summaries that cover the key insights?
- Is the pack the right length, focused only on the most relevant information?
Download the Best-in-Class Board Pack Checklist to evaluate your board packs.
Directors can also empower the corporate secretary to maintain high standards. Often, this starts with training or coaching.
One proven method is the Question-Driven Insight (QDI) Principle. It gives report writers a simple, easy-to-follow approach to create board papers that are clear, relevant, and rich in actionable insights.
Companies get better board materials when they put brainpower, time, and money into them. When you streamline and tailor them, they’re much more likely to hit the mark and help make your complex business easier to understand and govern.
NACD member
Tools can help management develop the skills and habits needed to deliver best-in-class board packs consistently.
Inspired by poka-yoke (a Japanese concept meaning “mistake-proofing”), AI tools like Lucia, our AI-powered board and management reporting platform, can double as an editor, helping management improve their writing and delivery of key insights. They prompt better writing and clearer insights in real time.
Equipping directors to work efficiently and effectively is vital. Boards can’t govern what they can’t see. Weak board packs hide risks, slow decisions, and waste time. But this isn’t just about risk. Board packs are an untapped opportunity to enhance board performance.
The research was conducted in partnership with the National Association of Corporate Directors from May to July 2024. More than 500 NACD members — corporate directors and others that serve on boards — were surveyed and interviewed.
