As a board member of an SME or non-profit, preparing for the upcoming board meeting, you have lots of information to review and want to get to the important stuff quickly!

You don’t want to be nine pages in and still wondering if the new marketing programme is delivering results. Nor do you want to be forced to search old minutes for the performance targets you agreed to. Unfortunately, with poorly structured and unfocused CEO reports this sort of scenario is all too common. . It’s frustrating!!

Wouldn’t it be great if the first pages of the CEO’s report provided a concise summary of the business’ performance and needs, then it clearly outlined the key areas you need to prepare for? It would certainly reduce some of your frustrations and make things easier going to the next meeting.

Good news for SME’s and non-profits ! Producing a CEO Report that delights the board, is very achievable, with a few key principles:

1. Get the Meeting Structure right.

Directors often think the main purpose of a board meeting is to be briefed by the chief executive about “what’s going on”. Whereas, the main role of the board is to ensure the organisation is achieving what it should.
The Agenda is the centrepiece of every board meeting and should focus on key discussions and decisions, with supporting papers laying out context and relevant information.

A CEO Report is the ultimate supporting paper, laying out the general business context from which the reader can drill into more specific information for key decisions. The primary purpose of the CEO Report is therefore to provide a context whilst the agenda and specific supporting papers provide the detail to drive decisions.

2. Be clear about governance-level targets and concerns

For the CEO to produce a report that provides real value, the board (in conjunction with the CEO) must first clearly define the targets and outcomes that mark “success”. These measures guide what information is needed from the CEO and stops the CEO heading down a side alley.

It also ensures the CEO Report is future-focused, enabling the board to be more effective in supporting the CEO based on what might happen, rather than reacting to what has already happened – which usually leads to ‘steering by looking in the rear vision mirror’.

3. Develop a CEO Report structure that works for your SME or non-profit

Once targets have been clearly defined, the CEO should be able to produce a report that clearly and easily gives the board the information they need. As a rule, the first two pages should be enough for board members to gather a broad understanding of the position of the business, without having to read any further.

The CEO Report template should cover all the main components, such as:

  • Key metrics (e.g. customer, financial and production)
  • Key discussions and decisions for the upcoming meeting (should marry in with the agenda)
  • Top of Mind for CEO- what’s keeping them awake at night
  • Big Wins & Learnings
  • CEO Summary (setting the scene for the board in a few sentences)
  • Additional Metrics

If your organisation can implement these principles you’ll be well on the way to efficient preparation, productive meetings, and a smooth relationship between the board and CEO.

To find out how BoardPro can support you in streamlining your board processes for greater efficiency and effectiveness, check out this page.


Author’s Acknowledgement: Principles 1 and 2 above are drawn from the work of Graeme Nahkies and this article in particular. Graeme is an advisor to BoardPro and the content is used with his permission. Learn more about Graeme and his work here.

 

Brett Herkt

Written by Brett Herkt
Brett is a serial entrepreneur, moving from accountancy to the ICT sector in the early 2000s before moving into software solutions for organisational management and governance. He lead the transformation of a small start-up ISP called Maxnet, with a x7 increase before being then sold to ASX listed company, Vocus Communications. Following this, he built Leaderkit, a software-based strategy delivery system for medium to large entities, which lead to the conception and development of BoardPro in 2016.