The goal of the board is to maximize shareholder value via setting the strategic direction for the company and ensure that the business has what it needs to be successful. Board meetings are driven by the CEO, but with a major assist from the CFO.
The periodic board of directors meeting is a critical affair. It behooves all involved to be well prepared. All too many board meetings are cobbled together too late, without a clear agenda and with insufficient information provided to the board prior to the meeting itself. Such meetings are not only frustrating for the board, they can be career limiting for the CEO and CFO, who are supposed to be focused on making that time productive. Good boards know when they are part of a hastily prepared, badly run board meeting.
A critical thing to understand “going in” is that board meetings are about education and decision-making. Boards typically drive toward consensus, and they need data and analysis to make good decisions. That is the job of the CEO and CFO. No surprises, great information, clean decisions.
Below is a brief, practical checklist which, if followed, will help ensure productive board meetings for all involved.
Last but critically, get the cleanly formatted, universally accessible (e.g., pdf) board package out to the board two days prior to the meeting. This allows the board to study the materials and come prepared for value-added discussion. If the meeting itself is their first time seeing the content, they will spend too much time absorbing and understanding, and not enough time questioning, discussing and getting to action.
Well-run board meetings are the hallmark of highly functioning business leaders. They result in better analysis, discussion, action and outcomes. The CFO and the finance organization are key to great board meetings. By running inclusive, transparent, smooth and informative board meetings, your company makes better decisions, builds more value and reaches higher goals. That’s finance done right.
Learn more about how we can help you strengthen your financial function to ensure better board meetings.
October 02, 2020