MINNEAPOLIS, Aug. 10, 2010 — A just-released annual Board of Directors survey, "What Directors Think," by Corporate Board Member magazine, revealed that board meetings are lasting longer, specifically:
- 33% say board meetings last 5 to 6 hours,
- 25% report meetings of 7 to 8 hours,
- 20% report meetings of 8 hours or longer.
In contrast, in 2002, 93% reported board meetings lasting four hours or less.
"What's causing longer meetings," says Anett Grant, President of Executive Speaking, Inc., a global executive speaking coaching company, "is more aggressive questions from more engaged board members."
"Handling tough questions from the board requires not only knowledge," says Grant, "but a set of skills that have to be executed with ease and impact – in the moment."
One of the key skills executives have to master at board meetings is answering the question the way it was asked. Executives have to avoid the temptation to use the board members' questions as a springboard to a discussion of what they think about an issue, providing background, context, and other tangential analysis. If the board member asks, "Why did we get this letter from the FDA," the executive can't begin with, "The FDA has gone through many changes in the past year."
Another key skill executives need in handling questions from the board is responding to questions on complex issues with clarity and precision – without dumbing down. Board members do not want leaders who explain the obvious.
When the treasurer recommends securing a long-term line of credit while credit rates are low, the board does not want a lecture on why securing long-term debt while rates are low is good practice – an economics 101 approach. On the contrary, the board wants to know how this request aligns with the company's proposed acquisition strategy – short term and long term.
Another key skill executives need is giving the board the right amount of detail even when they probe for more. Executives have to resist the temptation to respond to these probes by giving the board all of the details about how they reached their conclusions. The board does not want leaders to "show their work." Rather, the board wants executives to demonstrate they understand the vision of the company and are executing their responsibilities aligned with that corporate vision. Executives need to build trust in their competencies as leaders. When executives take the board into a deep dive, they open the door to discussion that belongs in management committee meetings – not board discussion.
Another key skill leaders need is getting comfortable thinking in grey, versus black and white – particularly in response to absolute yes/no questions. When the board asks the Chief Risk Officer, "Can you assure me that we have all risks under control," the CRO has to provide assurance that all major risks are under control, even though there may be a few minor risks that are not in control. Rather than going into the details of what risks are not in control, a leader needs to demonstrate that they are trustworthy and in control of their function.
"Mastering these skills is critical," says Grant, "because while the length of board meetings may be getting longer, board members' patience is definitely getting shorter."
For more insights on handling tough questions in the boardroom, call Anett D. Grant, President of Executive Speaking, Inc., at 612.338.5748.
Anett Grant coaches leaders from around the globe from companies including PepsiCo, DHL, Bank of America, Medtronic, Sabic, Sabmiller, and General Electric.
Website: http://www.executivespeaking.net
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