It doesn’t matter if you manage a relatively young company, or you’ve been in business for decades – board meetings can prove to be extremely valuable in the strategic development of your organisation.
Regular board discussions will do more for your directors than allow them to chew the fat over coffee or a nice lunch. These meetings will provide your leaders with the opportunity to review different facets of your business’ performance; talk about any issues that have arisen (or are on the horizon); and agree on the introduction of new systems, processes and policies that could transform your operations for the better.
As many high-level executives will attest to, these meetings also serve as timely reminders of decisions that would otherwise be put on the backburner indefinitely. Meeting regularly will help establish accountability and lead to faster and more effective decision-making – something that can only be positive when it comes to achieving growth.
Here are some tips on hosting board meetings that will drive your company’s chosen strategy, instead of letting these discussions simply create a passive reporting forum for members.
Who should you invite to your board meetings?
Anyone who plays a role in the strategic direction of your business should attend these meetings on a regular basis. This typically includes directors, chief executives, and other members of the board.
You may also want to invite ex officio members into the fold; these are individuals who have a privilege to join the boardroom environment because of the revered position they hold in the company.
Other staff members can join at the discretion of the other attendees. They may be invited in to present on a certain aspect of the company’s performance, or feed back on a specific issue. They do not normally need to be present for the whole meeting.
You do not need to invite long-standing employees or ‘friends of the business’ just because you feel obliged to. Attendees should be brought in on their merit and their business experience, not their corporate connections.
You should also think about how different members will work together. After all, the main purpose of your board meetings is to settle on sensible and appropriate ways of driving the business forward. Conflicts, personality clashes, and unwanted personal interests will all impact the success of these sessions.
Things to bear in mind when holding board meetings
Preparation is key
Setting clear objectives is crucial.
It is usually the chief executive’s job to collect and share information on what needs to be covered in the meeting. Usually, the meeting’s agenda – or board papers – will be shared beforehand, so attendees have a chance to prepare their own presentations and consider their contributions well in advance.
The agenda should follow an agreed format, so everyone knows what to expect, and when. Ideally, it should contain a list of specific points that are up for discussion, not more general ideas that could be loosely interpreted.
Your objectives for the meeting should:
• Serve to assist with the development of the company’s overall strategy
• Ensure company operations are in line with this chosen strategy
• Enable the board to monitor the company’s financial performance against the budget
• Relate to compliance with any legal or procedural obligations that the company holds
• Encourage feedback and ideas from non-executive directors, who are not members of the executive management team but are instead brought into the fold to challenge the board’s thinking and present different solutions.
It’s also useful to set SMART goals for your meetings and your overall business objectives. SMART stands for:
• Specific
• Measurable
• Attainable
• Relevant
• Timely
Find a suitable chairperson
Your choice of chairperson can make a huge difference to the smooth-running and overall effectiveness of your board meetings.
Your appointed person needs to have strong leadership qualities and be well-respected amongst your management teams. They must have a solid understanding of your business and demonstrate an ability to organise the flow of the meeting in a way that is both fair and productive for everyone involved.
Choose a venue that works for everyone
The right environment can encourage both creativity and focus. Your venue needs to be easily accessible and kitted out with the appropriate technology to ensure your meeting goes without a hitch. It’s also a good idea to choose a setting away from your company’s offices, so members are not distracted by day-to-day issues and have the physical and mental space to work on the business, not in it.
Let everyone have their say
It should go without saying, but you must open up the floor to all attendees, not just focus on the feedback and opinions of a select few. Board meetings should provide directors and other stakeholders with a chance to contribute fairly and equally.
Record minutes
Perhaps just as important as the meeting itself, the minutes serve as a crucial reference point for all attendees. It’s easy to forget what’s been said, and what’s been agreed – but minutes are an official and legal record of everything that’s taken place to date.
Here’s a little more information on how to take minutes at a board meeting. You will normally appoint a board secretary to undertake this vital role. There are also various tools and apps available to help your secretary create this documentation faster.
Always follow up
It can be easy for board members to leave the meeting and immediately immerse themselves back in their roles. Make sure you send reminders of the key takeaways from the meeting to everyone who was present, and deadlines for specific tasks, if they are applicable.
Our finance directors have decades of experience in dealing with C-suite individuals and communicating important financial matters to members of the board.
We’re at home in executive environments, and we enjoy assisting businesses in interpreting their management accounts and communicating other key finance matters to stakeholders. Contact us for help doing just that, or to get further advice on running efficient and effective board meetings within your business.