Boards demand increasingly high reporting standards

Marlene Börjesson from Evolvefy brought the question to Pär Haga, CEO of Boardeaser, which offers a digital board portal to facilitate board work. Pär believes that increased globalisation places higher demands on companies today, and to meet those demands, they must become more agile. Digital development also requires faster decision-making as competition grows, which is challenging for management and the board.

‍Two recurring challenges
A sound reporting system is characterised by its consistency, coherence with the company's strategy, and ability to be followed up on. It is also crucial that the CEO and board agree on which key performance indicators (KPIs) should be presented. In addition to financial KPIs, companies should measure employee satisfaction, product development, customer satisfaction, and more to obtain as complex a picture of the company as possible. Finally, having the right tools for documentation and follow-up is crucial. Pär mentions two recurring challenges that he sees among their customers.

- I have encountered many boards that receive considerable information without a structured approach before board meetings. This often goes hand in hand with a management team that wants to cover all bases. The risk of too much reporting is that board members may need help to digest all the information. Another challenge is that boards receive reports in a format that is difficult to understand. For example, a report in a table format may require a relatively high level of expertise to interpret and understand, Pär adds.

‍The focus on board work has significantly increased today.
According to Pär, the form and direction of board work are changing. In the past, board positions were considered more of a part of a trust or a family matter. Today, board work is seen as actual work. The changed reality means that board work is now much more in focus than before, which requires both time and commitment from board members. Therefore, the demands have increased, and board members must be more active.

- It is essential for the management team to prepare well-developed, easily understandable material for the board. This increases the chance that the board will read and be ready before the board meeting, allowing time for discussion and decision-making rather than just going through reports, says Pär.

‍A working order facilitates all companies.
Pär believes it is crucial for public companies where the Companies Act requires a written working order. The working order establishes, among other things, how often the board meets and procedures for when the minutes should be sent for adjustment after the meeting. An active order facilitates all companies, whether listed or not - regardless of size.

- To streamline your board work, a board platform can be an alternative. Then you get a control tool and support in board work before, during, and after the meeting. For example, it makes it easy for a board member to get an overview and know what is expected of them. Furthermore, a boarding platform can be adapted to the board's needs and grows at the same pace as the company, concludes Pär.

Three tips for more effective board work ‍

Establish relevant key performance indicators (KPIs) - The board's responsibility is to agree with the CEO on what should be reported and how.

Set appropriate reporting requirements - Avoid over-reporting by clarifying with the CEO and management the format and content the board needs.

Invest in a digital board platform - Create a specification and customise a board reporting system for the company.

If you want to learn more about Boardeaser, please visit boardeaser.com.

Practical board work is one of four sub-topics summarising the results of Evolvefy's survey "Board context in growth companies 2021". The respondents are CEOs, Investment Managers, and CFO or board professionals in growth companies.

‍Evolvefy helps entrepreneurs and business leaders in growing companies build financial structural capital to realise their growth plans. When a company grows, the finance function shifts, and the need for CFO expertise depends on the company's phase. This is where things can often go wrong and become very costly. That's why we exist. Our concept is based on flexible and tailored solutions. We offer Growth Analysis, CFO Interim, Recruitment, Risk Management, and Accounting Services.

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