How to make board work efficient

All too often, board meetings only manage to scratch the surface of the business. If the board materials only include financial basics – such as the income statement, balance sheet and cash flow statement – the board gets a very limited view of the company’s operations. Even if you supplement this with descriptions from the sales team about new customers and forecasts of upcoming deals, the board will still likely be scratching their heads in confusion of the competitiveness of the company’s offering.  

This is exactly why board material should include a comprehensive data package on customer behavior. Typical customer data relates to the formation, profitability and retention of customer relationships by segment. The exact information required depends on the company’s business model and the market.

Be careful, however, not to overload the board materials by including every imaginable metric. For example, there is a long list of SaaS indicators, each of which could be justified on its own. Instead, prepare a separate KPI (Key Performance Indicator) report as an appendix to the board materials, and review those indicators only when necessary.

To get the full benefit from board work as an entrepreneur, ensure that the members of your board have broad and complementary expertise. This allows them – using the customer data – to thoroughly analyze the strengths and weaknesses of your business and provide development suggestions that genuinely add value.

At worst, board meetings become nothing more than reading sessions, with the CEO speaking and everyone else distracted by their meeting pastries.

The business of a growth company is very different from that of a more established company in a multitude of ways. Therefore, board members with growth-company experience bring you more concrete value when compared to those with a corporate background – unless, of course, your products or services are sold to large enterprises.

However, comprehensive customer data and board members’ expertise alone aren’t enough to make board work effective – the operating model must also be clear. Otherwise, board meetings may end up becoming reading sessions for the board materials, with the CEO doing all the talking while everyone else focuses on eating their Danish pastries.

To make board meetings interactive and ensure that the focus stays on what truly matters, make sure every board member has reviewed the material in advance. It’s also advisable for board members to submit their questions about the material to management ahead pf time, so that answers can be provided before the meeting.