The Managing Up Kit part 5 – Be clear about what you want from the board

A frequent source of confusion, and therefore of ineffectiveness, between board and management is a lack of clarity about what the board is actually being asked to do at a board meeting. There are a number of potential outcomes when a matter is considered by the board. An issue may be for the board's information, such as a survey of the external competitive environment. It may be for noting, such as a risk management report, so the board can show they have considered relevant prudential matters and discharged their duties. It may be for a decision in principle, so that further work can be done to focus more sharply the final decision. Or it may be a request for a formal resolution, so that a transaction or course of action can be undertaken.

If you are not sure, and explicit, about what you are asking the board to do, neither will they be. You may end up with something unhelpful, or delay-inducing. Take the time to articulate exactly what you want from the board. Even if you don't get it, you will have the board in the right territory, and you will give them the opportunity to delineate what they want done before they will agree to what you are seeking.

Do you want the board:

• Simply to be informed about something
  
• To note, for their benefit or yours, some action or state of affairs
  
• To agree to something in principle, and also to agree on what else needs to be done before any final approval is given by them
  
• To decide, and authorise formal actions to be taken
  
• To decide, with conditions precedent before any action is taken, but still granting authority to proceed without further board involvement (a very useful mechanism for CEOs for getting on with things)?
  

 

Whatever it is, make sure you tell them clearly. State what outcome you want in any board paper or board report; include it briefly in a separate column in your first draft agenda (eg "note", "agree in principle", "resolve"), to help the chair support you in getting what you need.

Finally, be prepared for the eventuality that you may actually get everything you asked for. A common follow-on from the board in such circumstances is "What else do you need?" or "What will be the next step after that?". Not being able to articulate that next stage may mean you miss out on an opportunity that might not come again soon.