3 rules for Board of Directors and Board Meetings
An effective Board of Directors is a valuable resource for G-CEOs. Here are 3 general rules and guidelines to improve your Board of Directors:
1. Boards prefer to be led not managed
Your Board Members should be experienced CEOs, advisers, confidants and overall very busy people. It is your responsibility as a CEO to extract value from them. A good CEO needs to lead the Board from one meeting to the next, preparing the Board Members on important issues and decisions and asking for specific input and requests. Your board is too busy to solve your problems. You can ask for help, but they are still your problems.
2. Don’t bullshit your board
A CEO job is lonely, there are few people with whom you can have a frank conversation regarding the problems in the organization. Your Board is one of them. If you sugar coat results and problems and give only good news to your Board you are not only doing a disservice to the company (and your fiduciary duty…) but you are wasting a valuable resource. In a Board Meeting, always start with the bad news, don’t sugar coat results, and always under promise and over deliver.
3. Report progress and discuss strategy
Board meetings are a structured way for the CEO to create accountability for his results and a way to get input from Board Members on important decisions the company is facing. An effective Board Meeting has:
- A clear, concise and compelling Board Deck that gives an overview of the meetings’ agenda.
- A short (no more than 30 minutes) presentation of administrative and operational update.
- Highlights and issues. 4 things that went well in the quarter, 4 things you are having problems with.
- Open strategy session, where you discuss the big problems you are facing. Ask for specific help from Board Members, and their opinion on a problem.
- Short feedback by the Board about the company's position and the CEO’s performance.
Now that you know how to run a Board Meeting, spend the time and effort to recruit effective members to your Board. It will make a difference.
