| Types
of board information
Management
consultant John Carver describes three types of board information:
Decision
information is used to make decisions, such as establishing
selection criteria for the chief executive. It looks to the future
and is not designed to measure performance.
Monitoring
information enables the board to assess whether its policy directions
are being met. It looks to the past and provides a specific survey
of performance against criteria. An example is an annual review
of an organization's strategic plan.
Incidental
information is for the general information of the board and
not related to board action. Committee reports are frequently in
this category.
Too
often, board information is primarily incidental information. Although
such material is useful for maintaining an overall impression of
the administration of the organization, it is not usually specific
or substantive enough to help board members make decisions or monitor
the organization's success at carrying out its mission.
Establishing
a system
Establishing
and maintaining a board information system is the joint responsibility
of the board chairperson, board members. the chief executive. and
staff who work with the board. The board should discuss:
- what
information it needs to do its job
- how
often it wants this information
- in
what form it needs the information
Given
this board feedback, the staff can establish the content, format,
and frequency of information they will provide the board.
Characteristics
of good board information
Barry S. Bader, a consultant and author specializing in hospital
governance, identifies seven guidelines for developing effective
board information:
1.
CONCISE
Is the information communicated as quickly or as briefly as possible?
2.
MEANINGFUL
Is the information presented in relationship to a significant factor,
such as a goal set by the board, past performance, or comparative
data?
3.
TIMELY
Is the information relevant to the current agenda?
4.
RELEVANT TO RESPONSIBILITIES
Does
the information help the board or board committee discharge its
responsibilities?
5.
BEST AVAILABLE
Is the information the best available indicator of the situation
or condition being described? Can better information be provided?
6.
CONTEXT
Is it clear why this information is important?
7.
GRAPHIC PRESENTATION
Could the information be presented better graphically than in words?
Basic
Ingredients of a Board Information System
Every
board must decide for itself exactly what information it needs.
For most organizations, however, the following checklist is a starting
point:
At
least two weeks before each board meeting:
- Agenda
- Information
about issues for discussion, when appropriate o Financial information
- Committee
reports
At
least two weeks before the board meeting at which it is discussed:
- Annual
budget
- Audit
report
- Strategic
plan
After
each board meeting:
- Minutes
- Notice
of next meeting
Monthly:
- Financial
report
- Significant
published articles about the organization
Quarterly:
Regularly,
when appropriate:
- Memo
from chief executive summarizing current activities, accomplishments,
and needs
- Updated
material for board handbook
- Advance
copies of publications, brochures, or promotional material a Annual
report
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