A well-crafted board report is an effective tool that enhances collaboration, improves transparency and accountability, and aids in strategic alignment. Many companies struggle to create board reports that are timely and accurate. The issue could be a lack of structure, insufficient data, or a lack of presentation, the impact is negative to decision-making and growth.
Concentrate on sharing only the information that is necessary to make your board move forward. This will help to avoid information overload and the need for lengthy explanations.
Begin with a summary, or abstract that summarizes the main aspects of the report. This can help board members quickly comprehend and understand the report’s main points. Then, use this method to identify your company’s KPIs. Provide specific information within the context of goals and targets that were set last year and discuss the progress you have made.
Include a section on industry trends and challenges. This is a great way to explain the financial information you share and assist your board members understand, for example, why your market shares increased or decreased. If you’re facing significant regulatory hurdles Be sure to include this in the report to enable your board members to evaluate the potential legal risks and consequences.
Finally, share your next-step plan with the board. If it’s a new idea that requires their approval, or a re-evaluation of an existing one.