Best Practices for Preparing Board Documents

Board documents are a crucial source of information for making crucial decisions that keep a business on the right track. A board member could be overwhelmed by too many details, which can result in poor decision-making. However a board that has too little information may miss important insight or risk losing control over their business. To avoid this, board members need access to thorough and accurate information that is easy to digest and well-organized. This article outlines the best practices to create effective board documents which are in compliance with these guidelines.

Effective board documents contain the most current and pertinent information that is directly connected to the strategic decision being made. They are concise, simple and use a formal business style. They avoid jargon and technical terms. Information should be tailored for the specific needs of each director, because boards have a variety of backgrounds. Marketing jargon, as an example is not applicable to finance professionals. If you’re creating board documents, include a glossary of any particular terms or acronyms. This will ensure that everyone are able to comprehend the document.

The board should also create its own standards and guidelines for preparing documents. This includes using a template and preferred options for fonts, as well as the creation of an appendix sharing sources or providing additional details. The board should also define the rules for a quorum as well as the number of members required for a meeting to be held, ensuring that all directors have the opportunity to participate and be heard.

Boards should distribute their meeting materials before the meeting to ensure SaaS software that directors have enough time to read them prior to the meeting. A week is a good period to allow directors plenty of time to study and prepare for the meeting.