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Governance
HOW DO WE KEEP BOARD MEMBERS INFORMED?
Designing a Board Information System
Good governance depends on enlightened decision making. Board members
in turn need to be knowledgeable about the organization's status
and needs if they are to make sound decisions that advance its mission.
Boards often say that the information they receive hinders rather
than facilitates good governance and strong leadership. They protest
that they are overwhelmed with large quantities of irrelevant information,
that they don't get enough information, or that they receive material
too late to devote serious attention to it. An effective board information
system should focus decision making, stimulate participation, and
support an appropriate balance of responsibility between board and
staff.
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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