Research by Board Intelligence and the National Association of Corporate Directors (NACD) into US board packs reveals what best practice looks like and what corporate directors really think of their board materials.
Key findings
- Only 13% of corporate directors rate their board packs as “extremely effective”.
- 59% of directors report three or more individual areas of concern within their board packs — ranging from papers being too operational at the expense of strategy to information being too backward-looking and light on risk reporting.
- Using our Best-in-Class Board Pack Checklist, directors and governance teams can assess their board packs for best-practice characteristics: focus, critical thinking, and great communication.
Board packs rarely spark lively conversation over the dinner table, but there’s one question that’s increasingly likely to get people in governance circles talking: “What does a good board pack look like?”
It’s about time. For too long, board packs have languished on the sidelines of the board effectiveness agenda and the absence of a public dialog about board packs has led many boards to settle for sub-optimal materials.
It’s becoming clear, however, that a “not too bad” board pack is no longer good enough for most boards. Research by Board Intelligence and NACD, based on survey data and interview insights from more than 500 NACD members, has found that just 13% of corporate directors rate their board pack as “extremely effective”.
“Last week, I was at a top business school’s governance program, and we talked about board packs. I realized just how infrequently my boards talk about this, and how overwhelming it can be for directors.”
~ NACD member
What does the research tell us about the state of board reporting in US corporates?
This research — the largest ever undertaken into board packs in US businesses — reveals for the first time what corporate directors think of their board materials. And there’s room for improvement. Only 15% of directors believe their board pack is “extremely effective” at enabling strategic discussion and fewer than one in five (17%) consider their board pack to be similarly effective at communicating key messages.
What’s more, 59% of directors report three or more individual areas of concern within their board packs — ranging from papers being too operational at the expense of strategy to information being too backward-looking and light on risk reporting.
Corporate directors’ board pack concerns
Source: National Association of Corporate Directors and Board Intelligence 2024 survey.
What does a best-practice board pack look like?
Over the past 20 years, we have studied thousands of board packs across a wide range of industries, from financial services to mining. And there are three characteristics that mark the most insightful and impactful board packs apart: focus, critical thinking, and great communication.
- Focus: the board has a wide remit and limited time. The board pack must help directors to focus their energy and insights on the strategic-level topics, questions, and decisions that matter most.
- Critical thinking: board reports should be stacked with actionable insights, directly addressing the key questions that are on directors’ minds while also evidencing rigorous thinking by management.
- Great communication: reports that are clear, concise, and compelling make it much easier for directors to read, absorb, and act on complex information.
When board packs demonstrate these characteristics, they deliver the information and insight that directors need.
How do you improve the quality of your board pack?
Understanding what good looks like is only part of the puzzle. For directors, it can be difficult to realize this potential when they are not holding the pen, or directly managing those who do.
So, what can directors do? And are there any tools that can help?
First, directors must engage with the corporate secretary to set a new standard for board reports — providing constructive feedback to management, informed by a framework such as the Best-in-Class Board Pack Checklist, on a regular basis.
The best-in-class board pack checklist
Use the checklist below to assess if your board pack is hitting the mark and identify opportunities for improvement.
- Is it clear why each report is being shared with the board, and why now?
- Does each report demonstrate a clear link to the organization’s strategic goals and initiatives?
- Has management clearly articulated the direct “ask” of the board?
- Does each report summarize key actions with owners and deadlines?
- Does each report address the key questions that are on directors’ minds?
- Do reports provide a balanced analysis, giving a forward-looking view as well as looking backward, and considering the internal and external context?
- Does management offer actionable insights by answering two key questions in their reports: “What are the implications?” and “What will we stop, start, or do differently as a result?”
- If management is using slides to share information, are those slides sufficiently detailed or accompanied by a memo so they can be easily understood without a voice-over?
- Is each report tailored to the board’s specific needs and sufficiently strategic?
- Is the board pack shared in a timely manner to allow sufficient review and meeting preparation?
- Are the key messages clearly presented at the start of each report?
- Is the content of each report well-structured, with headings that signpost the writer’s logic?
- Is the writing in each report engaging and easy to read?
- Are graphs and data tables accompanied by a written narrative that explains the key insights?
- Is the board pack an appropriate length, because it includes only the most relevant information?
Download the “Best-in-Class Board Pack Checklist” to assess how your board pack stacks up.
Directors can also empower the corporate secretary to maintain that new board paper standard. This often starts with training and coaching — for example, rolling out the Question-Driven Insight (QDI) Principle to report writers. This gives management a simple methodology to follow, so they can deliver board papers that are well-written, focused on what matters, and rich in robust and action-oriented insights.
“Companies get better board materials when they put brainpower, time, and money into them. When you streamline and tailor them, they’re much more likely to hit the mark and help make your complex business easier to understand and govern.”
~ NACD member
It also extends to technology tools which help management to develop the skills and habits required to deliver best-in-class board packs on a consistent basis. Rooted in the Japanese product design concept of poka-yoke (which translates as “mistake proofing”), such tools — like our AI-powered board and management reporting platform Lucia — can act as a critical friend and editor, nudging management to improve their writing and sharpen their insights as they go.
It’s crucial to equip directors to work efficiently and effectively: the board can’t govern what it can’t see, and poor board packs expose organizations to risk by making it hard for directors to see what matters. But it’s not just about risk. Board packs are also an untapped opportunity to sharpen a vital board performance tool. When they’re done well, board packs can deliver a step-change in board value — fueling better conversations and smarter, faster decisions.
The research was conducted in partnership with the National Association of Corporate Directors from May to July 2024. More than 500 NACD members — corporate directors and others that serve on boards — were surveyed and interviewed.
