Board Meetings Facts:
Contrary to popular belief your board of directors does not make the majority of decisions for your company. Although they might have some authority in a few areas of high impact (in the case of a venture-backed business the decisions are usually described in the governing documents and investment documents) The majority of important issues are decided either by committees or the CEO/management with the input of the Board.
The majority of board meetings are focused on planning, policy and oversight, instead of business operations. The decisions made by an executive board can have significant consequences for the business. This is why it’s important to design and organize board meetings to encourage constructive discussions and outcomes.
To ensure that the board is well-informed, it’s important to make sure all members are informed. Distribute materials for the board in advance to allow attendees to familiarize them with the material prior to the meeting. The documents should be brief and clear enough that they do not require longer than an hour to review.
Then, plan a time for the board to discuss. Consider allowing attendees the opportunity to ask questions or make brief remarks in an open forum. Also, plan time for presentations by external stakeholders. Also, make time to have a consent agendaan area of the meeting where routine or non-controversial items may be approved with just a simple motion and a vote.
Lastly, communicate the decision-making process during board meetings. Determine if the goal is to reach a consensus or utilize the formal voting process and establish clear criteria for evaluating new ideas. This will allow everyone to recognize their role in the process, and the possible negative consequences of a decision-making process gone awry.