Tips for Improving Board Communications and Effectiveness

By Maureen Bujno, Managing Director, Audit & Assurance Governance Leader and Governance Services Leader, Center for Board Effectiveness, Deloitte & Touche LLP

Talking points

• Clear and timely communications between company management and the board of directors are central to board effectiveness.
• Establishing communications that fit this description doesn’t happen by accident.
• The practical tips outlined below are a starting point for a path to potentially enhancing management communications with the board.

Boards of directors have seen their responsibilities expand in recent years—from keeping pace with burgeoning regulatory requirements to overseeing emerging technology risks such as cybersecurity and artificial intelligence. Naturally, board members are feeling pressure to get more done in board meetings to keep pace. 

That’s where communications come in. Effective communications between management and the board are essential to the decision-making process and board effectiveness. But what do effective communications entail? In a nutshell, they require management to understand the role of the board and to take the lead on communications, knowing which strategic information the board needs to hear, and assessing how effective it is at communicating the most strategic topics. In practical terms, this comes down to two things: high-quality pre-read materials for the board and presenting effectively to the board. Let’s break down these key communications pillars.

High-quality pre-read materials for the board

Pre-read materials are essential tools for preparing board members to make the best possible decisions for the business. A few leading practices can go a long way toward improving the pre-read process. 

Board portals: Management should load pre-read materials to the board portal far enough in advance of the meeting to allow board members to review them and come to the meeting prepared with questions. The leading practice for lead time is one week before the meeting. Effective portals also include dashboards for key performance indicator monitoring.

Pre-read scope: Pre-read information should be comprehensive but not exhaustive. Management should avoid getting “into the weeds” with operational details that would be of interest to them, but not necessarily to a board member. Limiting the number of pages that can be included in pre-reads should also be a consideration.

Executive summaries: Each tab of the pre-read should have its own executive summary as the first item and should distinguish between information included “For informational purposes only” and information requiring a decision or vote to be taken. The latter content should include questions the board should be prepared to discuss in response to requests by management.

Consistent look and feel: Pre-read materials should also be uniform to the extent possible, which means having a consistent look and feel so board members can easily identify exceptions and key takeaways. 

Videos: Videos done well can make certain information easier to digest. Videos providing an update to the board, supported by a brief memo or deck containing key data points, have become a leading board communication practice. 

Appendices: Appendices are for important, but limited, supporting details of key points. Management should avoid adding pages of supplemental information to an appendix that have little to do with their main points. Remember, the board is responsible for reading and understanding all pre-reads, so management should be thoughtful about what is included in an appendix.

Presenting effectively to the board

These tips can improve oral presentations to the board.

Don’t bury the lead: The main purpose of an oral presentation to the board is to make sure that essential information is impossible to miss. Some tips to accomplish this include being clear about the purpose of the presentation and considering starting with the conclusion or most important point. 

Highlight changes and key points: When presenting financial information, management might highlight key changes from the prior period, balances involving judgment, and areas where there were “close calls.” Using one slide to discuss the two to three most important topics and including a summary or recap of important takeaways can be effective. 

Q&A: Our rule of thumb when presenting to the board is to speak for one-third of the allotted time and leave two-thirds to answer questions from the board or relevant committee. Having a dialog in the form of Q&A often works better than a one-way presentation for getting key information to stick.

What role can Deloitte play?

Deloitte’s Center for Board Effectiveness can provide additional insights and leading practices to advise boards and management about how to enhance the quality and effectiveness of their communications. I encourage you to visit our website and reach out to me with any questions.

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser.

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