From “Bored” Meetings to Effective Board Meetings
There has been a long-standing debate regarding Indian work ethics, but the fact remains that some key business practices are in play only because the law enforces them, and one of these happens to be board meetings. The problem is also derived from the fact that board meetings are taken too casually, and there is no real achievement by the end of it. To put this issue in perspective, Makoto Kitai, MD, Mitsubishi Electric India, commented that, “In India, being late by 15 minutes for a meeting is not considered to be late. Schedules go haywire, but people don’t complain.”
Board meetings become a bane for the directors because they are seen as just another date on the calendar when they are briefed about the startup’s performance over the past period. It is generally regarded as an unproductive use of time. What they fail to recognise is the tremendous value a well-planned meeting can add to the business. A board meeting can help understand how the startup has been performing in the past and the key metrics associated with it. It is also vital in understanding the plan of action for the future, any available investment opportunities, and insights on shareholders’ confidence in the business.
The board should ideally be the most informed group of people after the management, and considering that they may have the luxury of sitting across multiple boards, they can give a bird’s eye view of crucial decisions that can be taken. Here are some ways to ensure that board meetings are productive:
Setting the Agendas Beforehand
For a board meeting to be successful, the directors must be informed about the agendas that are to be addressed at least a couple of days in advance. The key financial metrics must also be sent along so that there is enough time for directors to be familiarised with them. Ideally, for all issues that are to be discussed, probable solutions must be thought of beforehand and evaluated during the meeting to save time.
Being Mindful of Time Spent on Questions
There is a chance that some board members will ask detailed questions regarding a particular aspect of the business, which reduces the time that can be spent on other issues. In this situation, a crisp answer should be provided, and if a member wishes to get more information, it should be provided after the meeting with an option to discuss it further with the management. Such questions can be written and recorded so that they are addressed without fail.
Prioritising of Agendas
The meeting is sometimes conducted in a way that initially, the unimportant issues are debated, and the important ones are left for last. The likely outcome of this scenario is that the former is discussed in depth while the latter is fit into the last half an hour of the meeting, which results in incomplete or incorrect decisions. Agendas must be prioritized in a way that what is most relevant should be addressed first, followed by the others.
Keep the Board Engaged
Considering the length of such meetings, there is always a high chance that board members will run out of attention sooner or later. It is imperative to invite views of all members on the topic at hand, even the ones who may be joining over Skype or telephone so that remain are active participants and are not distracted in any way. Gadgets that are allowed during meetings must be restricted or at least there usage must be controlled.
Bottomline
There can be more such ways that can improve the productivity of board meetings but what is most relevant here, is to understand that these meetings have a significance and can greatly help the company push towards success. If everyone’s time is respected and their views heard, then a lot of value can be extracted.
