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12 Strategic Questions Your Board of Directors Will Ask

    
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Establishing clear, frequent communication between your executive team and your board of directors is more important than ever.

Although they vary by industry, most boards of directors have a standard agenda of questions they ask executive teams, including topics like strategy, finances, staff and culture, and risk management. 

To help company leaders prepare for future board conversations, this article will cover 12 strategic questions you will likely face at one point or another from your board of directors.

1. Strategy

Developing and maintaining an organization’s mission, values, and growth strategy is a key part of any executive’s role, and every board of directors wants to know exactly how their team is working to achieve this. Make sure your executive team is prepared to answer questions like:

  • What is the long-term vision for the organization?

  • What is the organization’s plan for growth?

  • What are the largest roadblocks the company is facing?

2. Finances

Reviewing the status of your company’s current financial state, as well as financial projections for the future, will always be a priority for your board. Plan for the following kinds of questions to be asked in your next board meeting:

  • Does the financial plan match the strategic plan?

  • What are the cash flow objectives and how do they compare to previous forecasts?

  • What are the assets on the current balance sheet?

3. Staff and Culture

Your company’s culture and employee satisfaction are also things your board will want to be updated on regularly. Whether your business is currently thriving or working to overcome obstacles, be ready to provide insight and answer personnel questions like:

  • How is the executive team currently functioning?

  • How are you currently engaging and empowering employees?

  • What is your plan for attracting and retaining talent?

4. Risk Management

Ensuring that organizational risks are being properly accounted for and thoughtfully managed will undoubtedly be part of most board meetings. Your board will want updates on the steps your team is taking to mitigate both internal and external risks, and will look for answers to questions like:

  • What are the top risks for the company? 

  • How likely are they to occur? 

  • How are the risks currently being managed?

Final Thoughts

Anticipating and answering the questions above will put you in a strong position for your next board meeting. 

To help facilitate board communication, virtual data rooms (VDRs) are an excellent tool to securely share confidential documentation with your company’s board. VDRs are secure digital repositories with powerful functionality that includes:

  • Permission-based roles to help you share files and resources with the right people

  • Dashboards and reporting features for easily viewing the latest updates and insights

  • Q&A features for real-time communication between key decision-makers

VDRs allow businesses to compile all of your important business documents and present them in a clear, organized fashion. When working with a board of directors looking for key information and timely updates from your executive team, virtual data rooms are a great tool to help facilitate open communication.

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