The Board of Directors is a critical component of the company’s machinery. It supervises the C-Suite and provides overall strategic direction to the company. In India, a public company can have a maximum of 15 directors, of whom a minimum of one-third have to be independent, meaning having no material connection to the company. The board is required to meet at regular intervals (virtually or in-person) to confer, discuss, and decide on matters of varying complexity and sensitivity.
From a corporate governance perspective, it is essential that the board is able to carry out its functions in a frictionless manner. To make informed decisions, it is imperative that material like documents and presentations are made available in a timely way. It’s not a straightforward task to get highly busy professionals with packed schedules in the room (even if virtual!) at the same time. Coordinating their schedules can be a logistical nightmare. The last thing you want is for members to be scrambling around for an important document when they’ve finally made it into the same room.
Here’s where technology-based board management tools can come in like ProCS, Meetings360, BoardPAC, etc. The idea behind them is to smoothen out logistical difficulties so the focus can be on shop-talk. In today’s digital age, the old methods of paper-based records and emails cannot keep up. This sense was exacerbated by the pandemic, when the world was locked down but companies still had to function. New age board management tools can not only provide a secure virtual place for members of the board to access and share information, but also streamline the process of scheduling, agenda-planning, and the actual meeting. Centralising these functions in a location-agnostic technology tool can transform the efficiency levels of a board.
Through our conversations with clients, we have identified several challenges that organisations and secretarial teams commonly face while managing boards.
| Activíty | Without Software Tool | With SoftwareTool |
|---|---|---|
| Collaboration with Teams | Manual, time consuming and in silos | Centralised, with availability of functions like video-conferencing, annotation and real-time collaboration on documents |
| Organising meetings | Manual scheduling, logistics, and agenda creation | Automated meeting scheduling, streamlined logistics, and agenda management |
| Accessing important board information | Reaching out via emails or offline to secretarial team, which may have to conduct laborious manual searches in physical and digital archives | Centralised repository with controlled access to all relevant stakeholders and easy document retrieval |
| Decision-making | Manual vote collection and recording, potential delays in decision implementation | Digital voting capabilities, and efficient decision implementation |
| Board communication | Ad hoc communication channels, potential for information gaps or miscommunication | Centralised communication platform ensuring consistent and secure board communication |
| Reporting and analytics | Manual compilation and analysis of board data, potential for errors or delays | Automated reporting and analytics, providing real-time insights and enabling data-driven decision-making. |
Leveraging technology in streamlining board management processes can revolutionise the way boards and executives interact, making board activities more efficient and impactful.
Enhanced Security: Board management tools offer a secure platform for board members as well as secretarial teams which manage the back office function. Features like fingerprint authentication and remote data wiping can protect sensitive information and ensure the integrity of board discussions and decisions.
Streamlined Collaboration: Board management tools enable effective collaboration among board members, regardless of their location. It allows users to consolidate and access real-time business information, fostering seamless cooperation and decision-making.
Improved Efficiency: Board management tools can potentially speed up work processes. Sending and receiving files and documents is expedited. The software eliminates the need for manual searches by storing all versions of documents in an accessible place. Paper copies become redundant to a large extent as everything is stored digitally.
Simplified Meeting Management: Board management software simplifies the management of business meetings by providing a centralised platform for storing and retrieving important documents. All board members can quickly find and access the required files, ensuring smooth and well-organised meetings.
Robust Support Services: Board management software typically offers 24/7 support services staffed by IT specialists. The experts ensure that the platform remains up-to-date with the latest security features and provide assistance whenever needed.
Accessible Board Data: Board management tools provide convenient access to a wide range of board-related information, including meeting minutes, agendas, policies, onboarding materials, and strategic plans. The platform could work as a ready-reckoner for a member who wants to access historic information in the run-up to a meeting or discussion. This accessibility enhances transparency and allows for informed decision-making.
Shorter Meeting Times: A dependable board management software makes it possible to significantly reduce meeting duration. Easy file access, timed agenda items, agenda templates, automated meeting minutes generation, voting capabilities, and decision-making tools all contribute to more efficient board meetings.
Increased Engagement: Board management software encourages continuous engagement from board members throughout the year, enabling contributions before, during, and after meetings. This level of engagement helps board members stay updated with company progress and perform their duties effectively.
Access Control: Board management tools provide granular control over access to confidential information, allowing administrators to restrict access to specific individuals or committees (such as the Audit Committee, Compensation Committee, etc.). This feature ensures that sensitive data remains protected and accessible only to authorised personnel.
Time and Cost Savings: By eliminating the need for physical,paper-based meetings and reducing administrative tasks, board management tools save time and money. Paperless meetings and virtual gathering capabilities result in reduced administration costs and a positive environmental impact.
Board management software allows you to manage your board effectively. We understand the importance of selecting the right technology solution to meet your organisation's unique needs. Through our TechTune-Up service offering, we specialise in helping companies assess and identify the right board management tool to align with their requirements. We leverage our expertise and industry knowledge to guide you on standards, best practices and cost-cutting capabilities around board management tools.
We’re not afraid of complexity and have a deep understanding of the bottlenecks in the board management process. Let us partner with you on selecting the tools that optimise and even transform the way you manage your board meetings and interactions.
Bala is a solution architect, data analyst, and an MBA, who loves painting a picture using data. He leads a consulting practice that is at the cutting edge of legal market data, legal operating models, legal technology and innovation. Bala co-conceptualised and led the Vahura Best Law Firms to Work studies (2018 and 2022), and is a sought-after advisor on change management and innovation.
Shweta heads Vahura On:Board, our board search and consulting practice, where she focuses on the strategy & governance requirements of the boards of Indian companies.
Avi is a Managing Consultant and a key member of OnBoard, where she counsels and guide corporates in composing professional boards by working closely with them to identify competent non-executive directors.
