Do Your Board Meetings Really Work?

The board is the top decision making body of an enterprise. Collectively it takes a top down view of the strategy, capability and resources required to achieve planned performance and results. The recommended foundation for this is to have a 3 Year Plan. You don’t have to be a large company to benefit. 

As a company grows its management meetings will progress from detailed operational issues to strategic issues. Scrutinising the accounts in relation to budgets is basic but are they presented to enable judgements to be made by product and service, how are these trending how strong is the pipeline, how’s our cashflow, are we getting a good ROI from our marketing, etc. How can we fund capital investment, do we need to expand to other sites. Are we training and rewarding our staff and helping them to develop their careers. Approval of annual budgets. What about M&A opportunities and eventual exit? 

The most senior managers (usually called directors) who are responsible for the main functional areas of the business. Obviously this includes the CEO. It is unusual to have a chairman who combines that function with being the CEO. Alternatively, it is more usual to have a separate non executive chairman. The latter arrangement is preferred and conventional practice. This applies particularly to high growth companies. 

From time to time non board members are invited to present to and/or advise the board. 

The workings of the board evolve through each stage of the company’s development. For example with each step function in growth either organic or inorganic, or, appointments of new directors. The following features of board working remain consistent as the company progresses: