Board documents are an important source of information for making crucial decisions to keep a business on the right track. A member of the board can become overwhelmed by too much information and this can result in poor decision-making. However boards with too little information could miss crucial insight or risk losing control of their business. To avoid this, board members must have access to complete and accurate information that is easy to digest and well-organized. This article discusses the best practices to create effective board documents that satisfy these requirements.
Effective board papers include the most current and relevant information that directly impacts the strategic decisions to be made. They are concise, simple and use a formal business style. They do not use jargon or technical terms. Information should be adapted to every director’s needs, since boards have a variety of backgrounds. Marketing jargon for example is not appropriate for finance professionals. If you’re writing documents for boards, you should include a glossary for specific terms or acronyms. This will ensure that all readers can comprehend the document.
Additionally the board should create its own internal guidelines and standards for preparing board documents. This includes https://swrc2.info/how-to-write-a-board-resolution/ using a template and preferred options for fonts, and the creation of an appendix for sharing sources or providing additional details. The board should also set rules for a quorum and the number of members needed to convene a meeting, ensuring that all directors have the opportunity to participate and be heard.
Boards should distribute meeting materials in advance so that directors have ample time to review them prior to the meeting. A week is generally a good window to ensure directors have ample time to study the documents and prepare for the meeting.
