The board of directors is responsible for the governance of an organisation. They need to be able to make informed decisions based on accurate and up-to-date information. In today’s fast-paced, ever-changing business landscape, that can be a tall order. Boardroom technology — also known as board management software or board portals — can help.
Boardroom technology refers to the tools and systems that boards of directors use to communicate, collaborate, and execute their governance duties. These centralised, online hubs help boards collect and securely store information, track meeting agendas and action items, vote, e-sign, and engage with each other.
How do you know if your board is ready for boardroom technology? Let’s find out.
YOUR BOARD MAY BE READY TO USE BOARD TECHNOLOGY IF…
1. Board Administration and Management Have Become More Complicated
COVID-19 triggered a shift in how boards meet, work, and govern. Since directors couldn’t meet face-to-face, traditional paper or e-mail based processes needed to be better managed. This has proven to be more complex — if not outright unfeasible in certain instances — for many board administrators.
It’s exponentially more efficient for board members to conduct paperless meetings. With board portals, board members don’t need to resort to email and PDFs to disseminate board information (which, incidentally, is fraught with issues), track tasks, or communicate with each other.
It’s helpful as well to factor in the frequency of meetings boards of organisations are expected to have as well the board’s expectations for member growth.
a. Frequent meetings = more data
More meetings equate to more information. More frequent board meetings require better, more efficient management of board data. And with the volume of information directors receive, they might find themselves spending more time organising board data in their email inboxes or on mass collaboration platforms. The use of board portals make sense in this case. They allow directors to maximise their time on strategic governance by minimising administrative tasks that accompany paper-based or email-driven board meetings.
With board portals, directors can have a single point of access to an online repository that holds all the information they need to prepare for a board meeting.
b. Get new members up-to-speed
As for expectations of the board growing in size, it’s important to keep in mind that board portals hold both past (via archives) and present board information. This not only helps sitting board members access relevant data and stay organised, but can also quickly bring new board members up-to-speed. This can be critical especially when situations call for agile decision-making and thoughtful input.
2. Directors Struggle to Keep Track of Information
If the board is having trouble tracking information — whether it’s financial data, performance metrics, or something else entirely — it may be time to invest in boardroom technology.
Additionally, if board members are constantly forgetting important dates or missing deadlines, it’s another sign that the board could benefit from board management software. Most board portals have task management functionalities. This helps the board stay on top of their priorities and responsibilities and adds a layer of accountability and transparency.
3. There is a Need for Secure Methods of Communication
The use of email, PDFs, text or paper-based methods for communicating sensitive board information expose the organisation to compliance and security risks. As boards discuss critical, confidential information, there might (and should) be more hesitation towards sharing this via unsecure communication channels. Board management software can help in this area.
Best-in-class board portals are built with a “security-first’’ design philosophy and meet industry gold standards for protecting and securing information. They provide a high level of confidence for data privacy and protection.
4. Directors Want to Improve Their Governance Process
If you’re looking for ways to improve your governance process, board portals are useful. As alluded to earlier, the right board software can help boards focus more of their time on decision-making, collaboration, and the execution of board governance duties.
Board portals like Boardlogic also have functionalities such as e-signatures and electronic voting. Key decisions can be made during or between meetings, from anywhere and at any time. There’s no need to wait for the next board meeting to set things in motion.
The decision to use board management software can be based on a combination of factors. But it’s clear that board technology is here to stay — and the pros of availing of a centralised solution that organises, secures, and sustains the level of engagement of board members ultimately outweigh any cons. Introducing the idea of using board portals opens up the conversation — and possibilities — for modern-day board governance.
Speak with a Boardlogic Product Expert today.
Carissa Duenas