Effective board reporting informs better strategic decision making, builds trust and provides the platform on which boards can work with management to add real value to the organisation. Below are a selection of tried and tested tips that can contribute to better board reporting — and enhance your communication skills more broadly.
Before I jump into specifics, however, let me establish a set of assumptions to work from. Of course, these are my assumptions. But in any case, articulating the assumptions in your cooperative concerning board-management relations is essential for discussing what is expected in management reports.
As a board member, I work for my CEO. While it is true the board of directors hires its chief executive officer, I believe the job of an individual board member is actually to work for the CEO.
If this is indeed the case, it is very important for the board to have a chief executive officer they believe in and want to work for.
For this to happen, the goals of the CEO must be the same as the goals of the board, as articulated in the corporate mission statement, and the board must have complete confidence in the ability of the CEO to achieve these goals, as demonstrated by past and current performance.
If you do not like your CEO, you will fire her. In reality, many boards choose to fight with their CEO instead. Antagonistic personal relationships are not something I volunteer for.
Change the CEO or change the board member. If she is bad, it makes firing her a whole lot easier. In fact, to justify her high wages you should now demand that she produce more net income than before.
Being a board member is a volunteer position. Although you may be receiving money for your service, the money has nothing to do with why you are serving on this board. As a volunteer, your generosity should not be exploited.
Your board work must be structured to allow you to make the greatest possible contribution with the least amount of time spent on your part. Boards are not training campus for martyrs. My major responsibility is to assist my CEO in making good decisions.
Note that this is not the same as making good decisions myself. Since I trust my CEO, my role is simply to provide, during the decision making process, as much insight and critical appraisal as my training and experience allow. Utimately, I let my CEO make the actual decisions.
If the end results are bad we fire the CEO. All the important decisions have been made before the board meeting starts. I am a rubber stamp proponent. A good CEO will not bring important proposals to a board meeting unless they are going to pass: All the passionate arguments have already been made before the meeting starts, and everyone is fully aware of all the pros and cons.
People have made up their minds. Now is the time to tolerate brief discussion, vote, and accept victory or defeat graciously. Board meetings can be a pleasant experience.
In order to maintain an overview of the business I want a regular management report in a standard format. Since board members are busy people and your CEO is an effective manager, our board only needs four regular meetings a year shortly after each quarterly financial statement is released.
For each meeting I want two to five written pages of comprehensive management commentary.
The contents of the written management report should answer seven fundamental questions for every key area of the business. What happened during the last quarter? How does what happened compare to what was supposed to happen?
Why was there a difference between what happened and what was supposed to happen?
Douglas F. Prawitt, Ph.D., CPA. Douglas F. Prawitt represents the AAA on the COSO Board. He is the LeRay McAllister/Deloitte Foundation Distinguished Professor of Accountancy at Brigham Young University, where he teaches courses on financial statement auditing and professional judgment. Mill Valley Philharmonic brings free, live orchestral music to people in their own communities. Board of Directors The Board of Directors comprises of highly renowned professionals drawn from diverse fields. They collectively bring with them a wide range of skills and rich experiences, which enhances the quality of the Board’s decision making process.
How does what happened compare to what happened the last time same quarter last year? Why was there a difference between what happened the last time and what happened this time?
How does what happened compare to what is going to happen in the future? What are you doing today to make sure things are different tomorrow? Reporting by Exception RBE in each area:Mill Valley Philharmonic brings free, live orchestral music to people in their own communities.
§ § § § § § TITLE 8 Corporations CHAPTER 1. GENERAL CORPORATION LAW Subchapter IV. Directors and Officers § Board of directors.
Meet Abbott's Board of Directors and learn more about Board committees and members. (a) Members of the board of administration may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail. A meeting of the board of directors of an association occurs whenever a quorum of the board gathers to conduct association business.
Meetings of the board must be open to all members, except for meetings between the board and its attorney with.
Directors are responsible for supervising the activities of the corporation and for making decisions regarding those activities. On this page. General duties of the board of directors. This article deals with management reporting to the board of directors.
Before I jump into specifics, however, let me establish a set of assumptions to work from.