Successful board meetings

Over the years we've worked with literally hundreds of different businesses and that's given us the opportunity of identifying the characteristics of successful businesses.

The most noticeable characteristic is that successful businesses have regular board meetings. So this little tip sheet is designed to help you run a board meeting that will make your business really fly!

Some popular misconceptions about board meetings

They're only for big companies - absolute rubbish! Big companies use them as a means of keeping the management team focused. For small companies they are even more important. They are to keep the business owner really focused on what's important rather than just what's urgent.
You can't have a board meeting when there is only one person in the business - absolute rubbish! This is the business that needs a board meeting more than any other.
A board meeting sounds like something very stuffy with men in pinstripe suits sitting in an oak panelled boardroom - absolute rubbish! We've attended meetings with one of the most successful businessmen in the UK. The meetings were held at a London coffee shop. And we sat at a pavement table!
Board meetings are an absolute waste of time because nothing ever gets done - absolute rubbish! If the meeting is properly chaired, things will get done. And more than that, the important things will get done.
I don't need a board meeting because I know exactly what is happening in my business - with the greatest respect, most business owners don't know what is happening in their own business. Nor do they understand the key drivers to help them improve their sales, their profits and their life.

How to organise your board meeting

Make a timetable. Monthly meetings work best for most businesses. You might decide that you need them more often than this. Think about when the information you need will be ready and organise a meeting soon after that. For instance, if your accounts are ready on the 7th of each month you might hold your board meeting on the 10th of each month.
Appoint a chairman and a secretary. These roles are important. If you don't have any experience of being chairman or secretary you could ask Stephens & Co to provide this service. We have run meetings for lots of businesses of all sorts and sizes. Your investment could be as little as £240 per meeting and we guarantee that you will get value for money.
Who should be invited? The people responsible for finance, operations, sales and marketing should be present. In a small business, these functions might all be run by just one person. And that's fine. Already we're taking the important step of thinking about your business in terms of its functions.
Information. Agree on what information is needed for each meeting. Make certain that this information is prepared and circulated to all the board members a few days before the meeting.
Chairing the meeting. The role of the chairman is to keep the meeting focused and on time. At the same time, an experienced chairman will help to explore opportunities and problems. The more business experience that the chairman has, the better.
Keeping minutes. This is the job of the secretary. If you ask Stephens & Co to chair your meeting, we will be happy to also keep the minutes. The minutes are a legal document in your business. It's important that they are accurate, concise and distributed to every member of the board.
Taking action. Agree on actions to be taken, who is going to take them and set a realistic deadline. This is how things get done.
Non-executive directors. Some businesses find it helpful to appoint a non-executive director. This is a person who is not directly responsible for a function in your business but who does attend your board meetings. They act as a mentor and an advisor to help and guide you in your decisions. Again, this is something that Stephens & Co can provide if you'd like us to.
Time and place. This meeting is important. Very important. So you don't want to be interrupted. Find a place that is convenient to get to, away from interruptions and turn your mobile phone off. Allow sufficient time for the meeting. Be well prepared. And if you have special items for discussion let your Chairman know in advance.

What information should be prepared in advance

Businesses will each have their own peculiarities and so the information needed will vary. Call Stephens & Co if you need help identifying what's important.

As an absolute minimum, we would suggest that you have the following:

Minutes from the last meeting.
A profit and loss account for the month and year to date with budget comparisons.
A profit and loss account analysed by month.
A forecast profit and loss account for the end of the year.
A balance sheet.
An analysis of customers won and lost.
A cashflow forecast. This may be just for a few months or maybe for a rolling year ahead. Whatever suits your business.
Aged debtors and creditors. You need to be aware of any potential bad debts or overdue creditors.
Trend analysis. It's often difficult for everyone to interpret numbers. So put together some graphs and charts. It really will help you to see where the business is going.
Performance against bonus criteria.
People information. At the very least you should be monitoring your Team happiness. You may also want to monitor other things like turnover of people.
Productivity.
Report from your marketing person on current progress, new initiatives, plans for the rest of the year etc.
A report from your operations person on current workload, forecast for the near future, problems and opportunities.

How long?

How long do you need to allow for your meeting?

Once you've got into a routine and are familiar with the information you are looking at, the meeting will probably take between one and two hours. It's a small amount to invest compared to the returns we know that you will get.