Keeping boards in the loop: getting directors the right information

Abstract

Purpose This paper aims to offers suggested practices for dealing with the challenge of providing relevant and reliable information to boards. Design/methodology/approach Notes and reports from formal governance reviews have been considered from five organizations where board information was flagged as a key area for improvement. The cases were chosen from dozens of organizations the author worked with over a 10-year period. Findings The paper explains that boards struggle to process information because of challenges such as group dynamics and cognitive biases. Key themes identified reveal that both the type of information and how it is presented matters to boards. Most significantly, giving more information to boards is not always better. Research limitations/implications This is not an empirical study but instead seeks to use themes identified in practice as the base for suggestions for boards to consider when seeking relevant and reliable information to make decisions. Practical implications This paper makes practical suggestions on how boards and managers can ensure boards receive appropriate information from managers. These include having a clear philosophy for presenting information to the board, being clear on the story that is told, using knowledge visualization when appropriate, explaining how information is relevant to decision items and information items and appointing a steward to oversee the process if needed. Originality/value The struggle around board information has been noted in both research and practice. This paper empowers boards and managers with proactive strategies to steward processes and procedures related to board information.