Welcome to day 44 of the 90-day comeback challenge! Today it’s all about board reports: Why are they important and how do you create them correctly? Find out how to create effective reviews and previews and what key points should be included. Whether you are currently running your own business or just want to learn more about efficient business management, this article will provide you with valuable insights and practical tips.
What Are Board Reports and Why Are They Important?
Board reports are mandatory in some countries and optional in others, depending on the company structure. Essentially, they are quarterly reports covering the key departments and events in your company. The purpose of these reports is to provide a retrospective of the last quarter and a forecast for the upcoming quarter.
Structuring a Board Report
A typical board report should include the key departments of your company: Finance, Operations, Marketing, Product Development, Engineering, Design, Human Resources, and Legal & Compliance. The length of these reports can vary significantly – from 15 pages to 150 pages, depending on the level of detail and the amount of information.
Retrospective and Forecast
An effective approach is to create one page for the retrospective and one page for the forecast for each department. This means:
- Retrospective: What were the key results? Were the objectives achieved? What challenges were encountered?
- Forecast: What are the new goals? How will the challenges from the last quarter be addressed?
Example of a Board Report
Let’s say you are the CEO and you have six departments in your company. Each department head creates one page for the retrospective and one page for the forecast, totaling 12 pages. As the CEO, you add an introduction and maybe some of your own goals and results, bringing the report to about 15 pages. A cover sheet and any board decisions round out the report.
Key Decisions in the Board Report
There are three main categories of decisions that are covered in a board report:
- Company Strategy: The general direction and main business areas of the company.
- Budget Decisions: Financial planning and distribution.
- Personnel Decisions: Hiring and salaries of key positions like CEO, CTO, CFO, etc.
These decisions are documented in detail and made available to the board members and relevant stakeholders.
Transparency and Internal Communication
Another important aspect is transparency. You can create an internal report to share with employees, excluding sensitive information like financial data and personal information. For the public, you can issue a transparency report that provides an overview of the company’s development.
Conclusion
Board reports are an essential tool for corporate governance. They help keep the company on track, document key decisions, and create transparency. If you have questions about the processes, feel free to let me know!
Tomorrow we’ll have the halftime report, and next week we’ll talk about the board meeting.
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Your Julian
Entrepreneur / Investor / Athlete / Father
