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Board documents are an essential source of information that guides the major decisions that keep the company on track. The overload of information can overwhelm a board member and result in poor decision-making, whereas too little means the board is missing crucial information or could lose control over the business. To avoid this, board members need access to comprehensive and accurate information that is easy to digest and well-organized. This article outlines the best practices for drafting effective board documents which meet these requirements.
Effective board documents contain the most current and pertinent information that directly connects to the strategic decisions to be made. They are concise and clear, employing formal business writing styles and avoid jargon or technical terms. Information should be adapted to the specific needs of each director, because boards have diverse backgrounds. Marketing jargon, for example is not applicable to finance professionals. If you are creating documents for boards, you should include a glossary for any specialized terms or acronyms. This will ensure that all readers are able to comprehend the document.
The board should also establish its own guidelines and standards for the preparation of documents. This includes using a template and selecting the preferred fonts and creating an appendix that can share sources or provide additional information. The board should also define the rules for a quorum as well as the number of members needed for a meeting to be held, making sure that all directors are able to participate and be heard.
Boards should distribute their board meeting documents in advance, so that there is enough time for directors to read them before the meeting. A week is a good time frame to allow directors ample time to read and prepare for the meeting.