Board Meeting Facts:
Contrary to what many believe, the board of directors of your company does not make the majority of the decisions for your company. Although they are in charge of certain high-impact aspects (in the case of a venture-backed company most of the decisions are listed in the investment and governance documents) the most important issues are determined by committees or by the CEO/management team with the input of the board.
Board meetings tend to be more focused on the policy, planning and oversight functions than on business operations. Nevertheless, a board’s decisions can have a major impact on a business. This is why it’s important to plan and conduct board meetings to encourage constructive discussions and outcomes.
To ensure that the board is informed, it’s crucial to ensure everyone is informed. In order to facilitate productive discussions make sure to distribute the board’s materials prior to the meeting so that attendees can familiarize themselves with them before the meeting. Ideally these documents must be clear and concise enough that they don’t need more than an hour for review.
Next, set aside time for board discussion. It is possible to allow attendees to share brief comments or questions in open discussion, and also scheduling time for guest presentations by external stakeholders. Make time for the consent agenda, a section where routine or noncontroversial topics can be approved by a simple motion and vote.
Finally, during board meetings, explain the decision-making procedure. Decide if the purpose is to achieve consensus or if a formal vote procedure will be used and establish clear criteria for evaluating the ideas. This will allow everyone to recognize their role in the process, as well as the potential effects of a decision making process that went wrong.