Focus, structure and preparation have a huge impact on the success of a board meeting. Instead of narrowly focusing on the day of the meeting, broadening the lens to include the communications and responsibilities that lead up to the day of the meeting can dramatically increase the effectiveness of the actual meeting. Too many meetings follow a formula that starts with routine status-oriented topics, moves to positive items and ends with challenging or negative items. Is that formula the best use of board time?
Board meeting time is precious, and every minute needs to be productive and valued. If management has done a good job keeping the board informed in between meetings, and if the pre-meeting materials are meaningful and easy to ‘digest,’ then management should be able to safely assume the board is up to speed when they show up for the meeting. At the same time, board members have to accept their responsibility to do their homework and come to the meeting prepared to participate, not to watch a show and be spoon fed. If all parties are prepared we can eliminate presentations that simply rehash the pre-meeting content, and the time allotted to status updates can be minimized.
A best practice is to get the pre-meeting materials out as early as possible to give enough time for board members to review the materials. Preferably send them out at least a week in advance. Encourage board members to ask clarifying questions about the pre-meeting materials and provide answers prior to the day of the meeting. Management should aggregate the questions and answers, and if there are consistent soft spots in the board’s understanding, management should clarify for all members prior to the meeting. This will cut the meeting time required for status updates to nearly nothing, and instead focus discussion on the status topics that require real board attention and participation.
The best example of this in practice is the review of corporate financials. How many board meetings start with a presentation of the financials, and devolve into questions about accounting details and practices which consumes time and attention? If the board is kept up to date on the financials in between meetings, and if the pre-meeting materials provide a clear view of financial performance, then smart board members can work their way through the details with just a little guidance from the CFO. A best practice is to schedule a call with the CFO for a few days before the board meeting, and any board members with questions or comments about the financials can ask questions and gain clarity at that time. Unless financial performance is the central key topic for the board meeting, the result will be that financial performance can often be eliminated from the board meeting, and members can devote their time to strategy and direction.
Now that we have focused the board meeting on only the topics that require real board input and discussion, we have to address the structure of the meeting. At the start of the meeting, everyone is fresh and attentive and ready to go. As the meeting progresses, members start to exhibit withdrawal symptoms as their thoughts drift to the calls and emails that are piling up waiting for them – mental attention drifts and acuity fades. The meeting needs to be divided into segments that allow for meaningful breaks, but even taking time outs cannot completely recharge the mental batteries. If the meeting drags on too long, attention and patience will fade.
The first rule is to keep meetings focused on the few most important topics for the business, and not to try to cover too many topics or too much content. To get the most out of the meeting ‘less is more’ in terms of discussion topics. Covering fewer topics means more focus on what matters and where the board can be most effective. With fewer topics, there should be more time to appropriately dive into each discussion.
The second rule is to plan out the topics to be covered, and arrange the meeting to follow a meaningful flow. The topics should fit together and the meeting should have an overall purpose or theme. If executives are participating for certain sections, then try to avoid having them come and go by arranging topics in an order that will provide a smooth progression.
A caveat to the second rule is to consider the level of controversy each topic is likely to engender, and overall whether each topic is likely to be a positive or negative discussion. Unfortunately, bad news and contentious discussions tend to pollute the room and hang around even after the discussion has moved on. To the extent that it is not too contrived, this is an argument for covering positive or neutral topics early in the meeting, and negative or contentious topics later. You should not over-manage this, but once the room is polluted with negativity, it can be hard to clear the air and tackle upbeat topics. This is particularly true for businesses that are facing near-term challenges, but need to have their board engaged on longer-term opportunities. A possible meeting construct is to recognize the near-term issues in the meeting introduction and be clear that they will be addressed later in the meeting. This lets members focus on the opportunities while their minds are fresh and positive.
A caveat to the caveat is that leaving tough topics to the end can mean the meeting ends on a bad note, or the hard topics never get addressed because you run out of time as everyone races for the airport. The best answer to eliminate the timing problem is to practice aggressive time management and be prepared to drive the meeting to stay on schedule.
Ending on a down note is still a potential problem. However, if management is doing their job, they already know the challenges and they are coming to the board with plans and recommendations, not just problems. Even for a contentious or difficult topic, it is up to the CEO and the management team to acknowledge the issues and present their plans to address them. A positive board that is working in partnership with management should be able to turn these contentious or challenging topics into a helpful discussion, and in the end develop a plan of action that everyone can support. The goal of the meeting always has to be to make positive progress for the business.
