Time and again we hear a familiar refrain from non-executive directors – the board and committee papers are not helping us perform our role properly.
Sometimes the complaint is more moderate – the papers are improving but they are still not where they need to be. Either way, poor papers are a source of frustration for many directors. They are also one of the major causes of inefficient, and at times, ineffective boards. On the flip side, high quality papers enable highly effective board discussions.
We’ve worked with many clients where the quality of board papers was creating growing frustration for both the board and management, and ultimately undermining the critical relationship between them.
When Board Papers Fall Short
A client approached us for assistance where these issues were palpable. The board was frustrated that management did not understand directors’ needs. Management was frustrated because, despite its efforts writing and rewriting papers, the board remained unhappy. The CEO was frustrated because he could see that the papers caused time to be wasted in board meetings and were undermining the board’s belief in management’s capabilities. He was also spending way too much time rewriting papers, trying to fix the problem.
Practical Training for Executives
As we have done for many clients, Blackhall & Pearl conducted intensive training for executives and senior managers, helping them better understand the needs of non-executive directors, how to meet those needs, and what’s in it for executives to do so.
The training involved deep consideration of the role and perspectives of non-executive directors, and how these differ from those of management, practical tips and tools, and working through examples of good and not-so-good board papers, including actual papers prepared by management. Executives constructively critiqued each other’s papers and worked with practical tools and tips for better papers, helping them understand reporting from a director’s perspective. They also prepared for presenting their papers to the board or committee, again using practical tools and techniques and with colleagues providing constructive feedback.
Beyond One-off Training
Many companies run training, but the time pressures on executives mean there are powerful forces pushing them back to their default setting of bundling up management reports and sending them off to the board. Few training programs provide the ongoing processes, tools and tips needed to sustain improvements in paper quality. Setting up a system that means executives get ongoing feedback on their papers and how well they meet the board’s needs embeds the lessons from the training.
Outcome & Results
After working with Blackhall & Pearl, executives reported that it had become easier, and more efficient, to prepare board papers, as they now understood what ‘good looks like’ and what the directors actually need. In turn, this allowed executives to present their best selves in board meetings and allowed directors to focus on the issues that matter most and to contribute more guidance and insights on those issues.
Quality papers and presentations are an essential foundation for a high performing board, and for an effective board-management relationship. As many a director has said, if the executive can’t explain their business clearly and logically, how can I have confidence in their ability to run that business?
