Creating a board report is often seen as a daunting task for many founders and executives. The process can be time-consuming and fraught with challenges, but the importance of investing time in thoughtful preparation cannot be overstated. A well-crafted board report not only keeps investors updated but also secures support from the board. Moreover, it offers executives an opportunity to step back from daily operations and reflect on their overarching strategies. With careful preparation, a board report can become a vital tool in building a more impactful and valuable organization.
This guide is designed for executives and first-time board members at private companies, providing a step-by-step approach to transforming a blank slate into a polished board deck. We’ll explore the essential components of a board report, its purpose, and actionable tips for optimizing the effectiveness of board meetings.
What is a Board Report?
A board report is a collection of pre-read materials prepared by an organization’s executive team at regular intervals, typically in anticipation of a board meeting. The report includes critical updates and an agenda for the upcoming meeting, allowing board members to engage in productive discussions. While board reports can be presented in various formats, a presentation style is commonly used, allowing contributors to include text, images, and charts.
Purpose of Board Reports
The primary purpose of a board report is to serve the governing body of a company or nonprofit, which exists to offer both advice and oversight. According to a 2020 study by Harvard Business School and Russell Reynolds, the most effective boards at high-performing companies (termed “Gold Medal Boards”) excel at “refocusing the board agenda.” This is essentially what your board report aims to achieve: facilitating effective board member performance by directing their focus toward what matters most.
Before diving into the creation of your board report, keep these three objectives in mind:
- Inform: Board members need a comprehensive understanding of the organization to assist in achieving its goals. The report should provide essential information to keep board members updated on performance, progress, opportunities, and challenges.
- Drive Decision-Making: An effective board report outlines the decisions that need to be made, offering the necessary background for board members to make informed choices that drive the organization toward its goals. It sets the stage for meaningful conversations and diverse perspectives, ultimately leading to better decisions.
- Create Accountability: The board represents the interests of shareholders, investors, and other stakeholders. Therefore, board reports play a crucial role in fostering accountability between executives and the board, providing transparency and visibility into the organization’s activities.
Structuring Your Board Deck
A 2022 McKinsey survey revealed that, despite increased time spent on board work, members had not significantly improved value creation overall. A well-structured board deck is crucial for maximizing impact without requiring additional time commitments. Here are five essential sections your board deck should include:
1. Big Picture
This section serves as the “TL;DR” of your report—the first one or two slides that board members will focus on. It should encapsulate the high-level narrative of your organization’s performance, areas needing support, and key decisions to be made.
Typically, this section includes:
- An executive summary or CEO update.
- A summary of recent performance, highlighting both successes and challenges.
- An agenda for the board meeting.
Tip: Finalize this section last, as you will be able to create the most effective summary once the rest of your report is complete.
2. Key Metrics
In this section, data takes center stage. Present key metrics that have been previously identified and agreed upon with your board. These may include financial metrics (e.g., revenue growth, cash burn) or other indicators relevant to your organization’s strategy (e.g., user signups, hiring rates).
Tip: Ensure that the metrics are easily digestible by using concise headers and providing high-level commentary. Color-coding can be useful to highlight successes or areas of risk.
3. Company Updates
Move beyond the numbers to tell the story of your organization. This section allows you to discuss future initiatives, recent or planned hiring, team morale, product updates, and marketing campaigns.
Tip: Be transparent about the organization’s status. Acknowledge areas where plans may have fallen short, as this builds trust with the board and enables them to help address any challenges.
4. Focus Topics
This section is an opportunity to dive deeper into specific areas that require further discussion. Whether addressing challenges or exploring opportunities, choose one or two topics to focus on during the meeting.
Tip: Provide context for these topics and anticipate board members’ questions to facilitate a productive discussion.
5. Question and Answer
Conclude your meeting agenda with a Q&A section. Typically, this doesn’t require additional slides; the questions will arise organically during the meeting. However, you can add a blank slide for board members to jot down questions beforehand.
Tip: Consider having non-board members step out during the Q&A to allow for more candid discussions on sensitive topics.
10 Essential Tips for Successful Board Meetings
To optimize the effectiveness of your board meetings, consider these actionable tips:
1. Keep Your Presentation Short and Action-Focused
Highlight important topics that drive decision-making and action. Aim to cut through the noise and focus on what truly matters. Use standardized “read-only” labels for slides intended for informational purposes.
2. Keep the Group Small
While diverse opinions are valuable, too many participants can lead to unfocused discussions. Carefully consider who truly needs to be present, and invite others to join only for relevant sections.
3. Ask Yourself, “So What?”
During the board report preparation, reflect on the significance of each topic. Use the precious hours you have with your board to focus on discussions that will genuinely impact the organization.
4. Ask the Board for Help and Track Action Items
Your board is there to support you. Include clear requests in your report and assign responsibilities for action items during the meeting. Follow up afterward to ensure accountability.
5. Share the Deck Ahead of Time
Distribute your board report at least 48 hours before the meeting, or ideally two weeks for larger organizations. This allows board members ample time to review the content, facilitating more meaningful discussions.
6. Appoint a Timekeeper
Allocate specific timeframes for each section of the report to ensure efficient use of time. If the chairperson is not managing this, appoint a timekeeper to keep discussions on track.
7. Enlist Your Team in Deck-Building
Collaboration is key to a successful board deck. Assign sections to team members who are most knowledgeable about specific topics, and keep track of progress.
8. Encourage the Entire Board to Participate
Foster an environment where all members feel comfortable contributing. Encourage quieter members to share their perspectives on focused topics, enhancing the diversity of discussion.
9. Keep the Information Accessible
For businesses operating in technical fields, consider adding a glossary of terms and acronyms in the appendix. This will help ensure all board members can engage with the content.
10. Collect Feedback
Integrate feedback rounds into your board meetings. Conduct a quick feedback session at the end or send out a post-meeting survey to gather suggestions for improvement.
Conclusion
Crafting a board report is a vital process that can significantly enhance your organization’s effectiveness and accountability. By understanding the purpose of board reports and following a structured approach, you can transform your meetings into strategic discussions that drive meaningful outcomes. With thoughtful preparation and execution, your board report can become a powerful tool in guiding your organization toward success, fostering stronger relationships with board members, and ultimately creating a more impactful and valuable company.
Investing the time to refine your board reports and meetings will not only keep your investors informed but will also help you gain valuable insights and support from your board, leading to more effective decision-making and ultimately propelling your organization forward.