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Efficiency in Board of Directors Documents
If the documents of the board of directors are difficult to find or confusing, directors are less likely to show up to meetings prepared to discuss strategies and take decisive action. This is especially true when the meeting packet for the board arrives late or if changes are not communicated to board in real-time which can lead to confusion about what is “the correct version” to go through.
It’s difficult for boards to supervise and monitor a company if they lack adequate information and don’t have enough director discussion between board meetings. Board meetings that have unclear agenda items, inadequate background on strategic issues, or too much unrelated discussion can make it difficult for the chair to get the meeting moving.
Boards play an essential role as stewards for their businesses and have a significant impact on the performance of the business. Boards that are not effective can be harmful. A dysfunctional board might be characterized by a tense and unruly membership, who simplify complex issues or engage in discussions diverge from the topic. Worse is it could have members who remain silent or MIA.
Boards are a complex organization and the success of a board requires the involvement from a diverse group of people who bring different viewpoints experience, knowledge, and expertise to the table. Many boards have formed committees for audit, compensation and governance as well as financial services-regulated risks. Some even have ad-hoc committees to assist them in tackling smaller-scale, more urgent issues.
