Board Meeting Facts
Board Meeting Details:
Contrary to what many believe, your board of directors do not make the majority of the decisions for your company. Although they may have authority in certain areas of significant importance (in the case of a venture-backed business they are typically outlined in the governing documents and investment documents) The majority of important decisions are decided by committees or by the CEO/management with the help of the Board.
Board meetings usually focus on policy, planning and oversight rather than business activities. The decisions made by an executive board can have significant consequences for the business. This is the reason it’s essential to design and run board meetings that allow for constructive discussions and outcomes.
The first step is to make sure all board members are well-informed. In order to facilitate productive discussions be sure to distribute the materials to board members in advance to allow attendees to get familiar with them prior to the meeting. Ideally these documents should be clear and concise enough that they don’t require more than an hour of review.
Then, schedule time for the board to discuss. It is possible to allow attendees to ask questions or provide brief remarks in an open forum. Also, schedule time for presentations by outside stakeholders. Finally, set aside time for a consent agendathat is, a section of the meeting where routine or non-controversial topics can be approved through a simple motion and vote.
Last but not least, share the decision-making process during board meetings. Decide if the purpose is to reach consensus or if a formal voting procedure is required and establish clear criteria for evaluating concepts. This will allow everyone to recognize their roles and the potential negative consequences of making a poor decision.