Reimagining Board Communication: The Future of Boardroom Engagement

Board reports are crucial for effective governance, ensuring transparency and trust among board members. Board committees play a vital role in preparing and reporting important information to the board, conducting research, and making recommendations that are essential for informed decision-making. Accurate information and relevant questions are essential for informed decisions. However, all too often, Board reports are trite and retrospective.



Good board reporting fosters communication and collaboration among board members. Board communication and reports need to allow members to grasp crucial information and key meeting agenda items quickly.

Understanding Board Reports

A board report is a document that conveys key insights and information related to the organization’s risks, opportunities, and overall performance to the board. A comprehensive board report provides an overview of the company’s performance, financial status, strategic initiatives, and risks, emphasizing its importance in effective corporate governance by facilitating effective communication and decision-making among board members.



The Challenges of Traditional Board Communication

1. Inefficiency in Information Sharing

Board members often receive large volumes of information, sometimes exceeding 300 pages per meeting, with financial services boards seeing 600+ page reports. Studies show that the average reader can effectively comprehend only 30 pages per hour, making it nearly impossible to absorb and analyze the full board pack in the standard 48-hour pre-meeting window. Presenting a comprehensive financial report to the board can be particularly challenging, as it involves transforming complex financial data into a format that is easily understandable for non-experts.

2. Lack of Interactivity and Engagement

Traditional board materials are often static, preventing members from querying data, interacting with content, or clarifying key points before meetings. This results in board meetings being consumed by clarifications rather than strategic discussions.

3. Time Wasted on Administrative Functions

Board meetings typically last 4 to 6 hours, but over one hour is often spent on governance tasks like minutes approvals, legal reviews, and procedural functions. Many of these tasks could be handled asynchronously, freeing up time for more meaningful discussions.

4. Boards Are Becoming More Complex

With 66% of directors stating that boardroom dynamics have become more complicated, the need for clear, concise, and forward-looking communication has never been greater. Topics such as corporate resilience, activist investors, geopolitical risk, and compliance are now standard discussions in boardrooms.

Driving Effective Board Meeting Preparation and Presentation

Board reports need just enough detail to summarize the organization’s performance and strategic initiatives clearly. Crafting effective board reports is essential for structured communication, ensuring that all key points are conveyed efficiently. Visual aids and storytelling can convey complex information engagingly. Anticipate potential questions and be ready to address concerns, providing any additional information as needed.

Common Mistakes to Avoid in Board Reporting

• Providing too little or too much information can be overwhelming and ineffective.
• Failing to prioritize insights and KPIs can lead to confusion and misalignment.
• Failing to use a single platform for reporting can lead to inconsistencies and inefficiencies.
• Board report writing should blend art and science, emphasizing clarity and conciseness to aid board members in their roles and support decision-making.

Gathering Feedback and Improving Board Reports

• Encourage feedback from board members to improve the quality and effectiveness of board reports.
• Use feedback to refine the reporting process and improve communication and collaboration.
• Consider using a board portal software to facilitate feedback and communication.
• Dive into the analytics that board communication platforms provide.
• Emphasize that writing board reports is typically a collaborative process involving guidance from C-suite executives who ensure the reports meet board expectations. Contributions from various practitioners, such as the Chief Information Security Officer and General Counsel, are crucial in assembling critical insights and recommendations for their respective domains.

Best Practices for Writing a Board Report

• Use a clear and concise structure to present information.
• Provide relevant data, insights, and recommendations to support informed decision-making.
• Use visuals and narratives to present complex information in a clear and engaging manner.
• Prioritize insights and KPIs to focus on key performance indicators.
• Align with organizational objectives to ensure strategic alignment.
• Write a board report with a structured approach and relevant information to improve decision-making and clarity for board members.

Board Report Structure and Template

A good board reporting template should include an overview, key updates, critical information, meeting details, and an agenda. Having a structured framework for board reports ensures consistency and enhances the presentation of key information to board members, ultimately aiding in decision-making. Use a consistent reporting format to ensure clarity and ease of use. Use AI to enable self-learning and continuous adaptation of the report to the board’s style and needs. Consider using board reporting software to streamline the reporting process.



Tools and Software for Board Report Creation

Effective board report creation requires the right tools and software to streamline the process and enhance the quality of the reports. Here are some popular options that can significantly improve board reporting:

1. Board Portal Software: Platforms like Diligent, BoardEffect, and OnBoard offer secure, centralized environments for creating, sharing, and managing board reports. These tools ensure that board members have easy access to up-to-date information, facilitating better preparation and engagement.
2. Reporting and Analytics Tools: Tools such as Tableau, Power BI, and Google Data Studio enable the creation of interactive and visual reports. These platforms help highlight key performance indicators (KPIs) and provide deep insights into the organization’s performance, making it easier for board members to grasp complex data quickly.
3. Document Management Software: Solutions like SharePoint and Google Drive are essential for storing, organizing, and sharing board reports and other critical documents. These tools ensure that all board materials are easily accessible and well-organized, reducing the time spent searching for information.
4. Collaboration Tools: Platforms such as Slack and Microsoft Teams facilitate real-time communication and collaboration among board members and staff during the board report creation process. These tools help streamline discussions, feedback, and revisions, ensuring that the final board report is comprehensive and accurate.

By leveraging these tools, organizations can enhance the efficiency and effectiveness of their board report creation process, leading to more informed decision-making and better governance.

The Role of Board Members in Reviewing a Board Report

Board members play a pivotal role in the board reporting process, ensuring that the information presented is accurate, relevant, and actionable. Here are some key responsibilities of board members when reviewing board reports:



1. Reviewing and Analyzing Reports: Board members must thoroughly review and analyze board reports to understand the organization’s performance, financial health, and strategic direction. This involves scrutinizing financial reports, key performance indicators, and other critical data.
2. Providing Feedback: Constructive feedback from board members is crucial for improving the quality of board reports. Board members should offer suggestions for enhancement and ask questions to clarify any ambiguities, ensuring that the report is comprehensive and clear.
3. Making Informed Decisions: The primary purpose of board reports is to equip board members with the information needed to make informed decisions about the organization’s strategy, operations, and finances. Board members should use the insights gained from the reports to guide their decision-making processes.
4. Holding Management Accountable: Board members are responsible for holding management accountable for the organization’s performance and progress toward its goals. By critically evaluating the information presented in board reports, board members can ensure that management is effectively executing the organization’s strategy and addressing any issues that arise.

Board members can contribute to more effective governance and better organizational outcomes by actively participating in the review process.

How Technology Is Transforming Board Communication

1. Cloud-Based Platforms for Board Report Creation and Real-Time Interaction

Modern board communication platforms such as Zeck and Board Intelligence are replacing static PDFs with dynamic, interactive, and cloud-based solutions. These tools:

• Streamline the reporting process and improve collaboration.
• Allow directors to ask questions before meetings, reducing time spent on clarifications and protocol and more time on understanding and advising the leadership team.
• Provide real-time tracking of engagement, showing how long members spend reviewing materials.
• Enable pre-voting on routine governance items, removing unnecessary discussions from live meetings.

Board reporting examples include various types of reports necessary for board meetings, such as those covering strategic planning and financial forecasting.

2. AI-Powered Content Summarization and Drafting

AI is being leveraged to:

• Auto-generate draft board reports based on previous meetings and discussions.
• Summarize key points to focus board members’ attention on the most critical issues.
• Track engagement patterns to refine how information is structured for maximum effectiveness.
• Provide comprehensive CEO board reports that offer an overview of strategic initiatives and organizational performance.

Some CEOs have reported an 80% reduction in board meeting preparation time due to AI-assisted tools.

3. Data-Driven Boardroom Analytics

New platforms provide granular analytics on director engagement, allowing boards to track:

• Which documents were reviewed?
• How much time did Board members spend on specific sections?
• What were the number and type of questions raised before the meeting?

Organizations that implemented engagement tracking saw board member interaction rates jump from 50% to nearly 100% within a single meeting cycle. Additionally, using templates for creating structured reports, such as a nonprofit board report, not only saves time but also ensures adherence to best practices, making it easier for professionals to customize reports without starting from scratch.

4. Security and Compliance Enhancements

Concerns over confidentiality and data security are being addressed through SOC 2-compliant board platforms. Unlike email attachments or shared drives, these systems offer:

• Encrypted communications.
• Access control and tracking.
• Secure environments for privileged exchanges between management and board members.

Best Practices for Reimagining Board Communication

1. Adopt a Mobile-First, Interactive Format

Instead of long PDFs, use a cloud-based digital platform that allows for annotation, discussion, and engagement. This aligns with how professionals consume information in all other aspects of their work and personal lives.

2. Implement Pre-Meeting Engagement Features

Encourage directors to review materials in advance and ask questions digitally before the meeting. This eliminates wasted time clarifying information during board discussions.

3. Use a CEO Cover Memo for Focused Discussions

A best practice is for the CEO to provide a three-page executive summary at the start of board materials, outlining:

• What’s going well?
• What are the areas of concern?
• What are the key decisions requiring board input?

4. Shift from Information Dumping to Insight-Driven Reports

Instead of overwhelming directors with data, board reports should answer three key questions:

• What happened? (The factual context)
• So what? (Why does it matter)
• Now what? (The next steps and actions required)

5. Encourage Reciprocal Obligation Among Board Members

Board culture should shift toward accountability, where directors come prepared, engage proactively, and contribute meaningfully. Data-driven transparency tools make it easy to identify disengaged board members who are not adding value.

Reciprocal Obligation: Driving Accountability and Engagement

What is Reciprocal Obligation?

Reciprocal obligation refers to the mutual responsibility between board members and management to engage actively, prepare thoroughly, and contribute meaningfully to discussions. It ensures that board meetings are not just governance checkpoints but collaborative forums where informed decisions are made efficiently.

How Reciprocal Obligation Drives Behavioral Change

• Encourages Proactive Engagement: Board members feel a greater responsibility to prepare for meetings, as their engagement levels can now be tracked.
• Reduces Passive Participation: When directors know their interactions with board materials are monitored, they are more likely to read reports thoroughly and arrive at meetings with insightful contributions.
• Enhances Decision-Making: A culture of reciprocal obligation ensures that discussions focus on strategic oversight rather than rehashing old information.

Benefits to the Board and the Company

• Higher Accountability: Transparent engagement metrics highlight which directors are actively participating and which are disengaged.
• More Effective Meetings: Board discussions become forward-looking and action-oriented, reducing the need for repetitive clarifications.
• Stronger Governance: By reinforcing a shared commitment to preparation and contribution, boards can better support management in driving the company’s success.

The Future of Board Communication

1. The End of PDFs and Slide Decks

The static, one-way nature of board presentations will become obsolete. Instead, companies will transition fully to cloud-based, iterative, and interactive communication platforms.

2. AI-Enhanced Boardroom Decision-Making

AI will play a continuously increasing role in:

• Identifying key discussion points.
• Automating routine governance tasks.
• Offering predictive insights based on boardroom trends.

3. Data-Driven Governance

Boards will increasingly rely on real-time analytics to assess their effectiveness, track engagement, and ensure that meetings are focused on strategic value creation.

4. Increased Board Accountability

Greater visibility into board members’ reading, questioning, and participation habits will create a culture of accountability, ensuring that every director actively contributes to governance and decision-making.

Conclusion

The boardroom is at a turning point, and companies that fail to modernize their communication processes risk inefficiency, disengagement, and poor decision-making. By leveraging cloud-based technology, AI, and data-driven insights, boards can transform their communication practices into more engaging, strategic, and effective ones.

The future of board communication is clear: interactive, intelligent, and insight-driven. Now is the time for organizations to embrace this change and reimagine the way their boards operate. Effective board reporting is crucial for impactful communication and decision-making among board members. By following best practices and using the right tools and software, organizations can create comprehensive board reports that engage board members and support informed decision-making.

2024 Board Director Survey by McKinsey

Key Stats and Figures

• In 2019, 50% of directors reported deriving value from their board materials, while only 25% of directors claim to find value in their board materials today.
• Only 13% of directors said that they thought their board papers were effective.
• Governance functions that do not need to be present at board meetings take up more than one hour. Technology easily enables these functions outside of the meetings, leaving time for thoughtful discussion during the meetings. 
• 30 pages per hour – the reading speed for complex language comprehension (Princeton research study).
• 300 pages is the average length of board packs, 600 pages is the average length in financial services, and 1,000+ pages in deep financial services.

Board Engagement and Time Commitment

Directors report spending an average of 31 days per year on board work in 2022, up from 25 days in 2019.

In 2022, 62% of directors said their boards' decisions and activities had a high or very high impact on long-term value creation, compared to 58% in 2021.

66% of directors surveyed said that the boardroom and their roles have gotten much more complicated.

On average, the demand for a board director's time has risen by five additional days per director per board over the past five years.

Strategic Focus

Strategy remains the top priority on board agendas.

70% of boards are effective at setting a comprehensive framework for overall strategy.

44% of boards adjust their strategy continuously based on changing conditions.

Board Effectiveness and Collaboration

Over 90% of respondents say their boards have become more effective over the past five years.

Improved collaboration with senior executives and more active or skilled independent directors are cited as primary drivers of increased effectiveness.

Key Stats and Figures

In 2019, 50% of directors reported deriving value from their board materials, while only 25% of directors claim to find value in their board materials today.

Only 13% of directors said that they thought their board papers were effective.

Governance functions that do not need to be present at board meetings take up more than one hour. Technology easily enables these functions outside of the meetings, leaving time for thoughtful discussion during the meetings. 

30 pages per hour – the reading speed for complex language comprehension (Princeton research study).

300 pages is the average length of board packs.

600 pages is the average length of board packs in financial services.

1,000+ pages is the length of some board packs in deep financial services.

Areas for Improvement

Only 24% of directors say new board members receive sufficient induction training to be effective.

36% of boards act to reduce biases in boardroom decision-making.

Emerging Topics

Hot topics in boardroom discussions include:

Risk management and resilience.

Technology, particularly AI and digital transformation.

Board Diversity and Skills

Boards are recognizing the need for diverse skills and expertise, especially in emerging areas like technology. However, many boards still lack deep industry expertise and relevant new skills.

Related Insights

Better together: Three ways to boost board–CEO collaboration

The rising complexity of board directorship

Ready to board: Ascending new heights through CEO-board communication