Across organizations, there’s a running list of strategic priorities demanding boards’ and senior executives’ attention. Deloitte research reveals that directors would like to be having more robust boardroom discussions on mission-critical topics such as talent,1sustainability,2 and generative AI,3 to name a few. But finding more time for these discussions often isn’t feasible. How can executive teams make the most of the limited time they have with their boards?
A recent Deloitte US and Center for Audit Quality survey of 266 board directors from mostly large, US-based public companies who serve on audit committees uncovered three ways that executives can help make their time with audit committees more effective. In the United States, the audit committee typically has the most expansive mandate among board committees,4 so these takeaways likely also could apply to full board meetings or other committee meetings.
The survey showed that nearly two-thirds (65%) of board respondents believe their meetings could be more fruitful. When board respondents were asked to rank which actions had the most potential to make audit committee meetings more effective, the three leading responses were increasing discussion or engagement of committee members (29%), better pre-read materials (28%), and better presentations (26%).
“One of the most compelling takeaways of the survey was the strong desire among respondents to foster deeper engagement and discussions with each other, their executive teams, and other presenters during meetings,” says Krista Parsons, Audit & Assurance managing director, Deloitte & Touche LLP and the audit committee program leader in Deloitte US’s Center for Board Effectiveness. “They’re also looking for better pre-reads to facilitate meeting discussions.”
In an era in which time is a precious commodity, the survey indicates that the majority of board respondents think that their limited time with each other and management could be better spent. For example, instead of spending most of the meeting time going through formal presentations that committee members have already read beforehand, “The meeting should start where the pre-reads end to allow for more discussion,” Parsons says. Moreover, pre-read materials likely could be streamlined, she adds. “Complaints we hear from directors include: ‘Materials are too voluminous or dense.’ ‘They bury the lead.’ ‘The format doesn’t facilitate discussion.’” The areas for improvement that board respondents highlighted in the survey may seem intuitive, but the survey results indicate that many executives might not be applying these meeting best practices often enough, she says.
Overall, the survey responses show that executives could benefit from creating space for deeper conversations and problem-solving opportunities with their board—the people who are likely best equipped to offer them guidance and support. “When you think about who often sits on the board of a public company, it’s a group of extremely accomplished leaders who have had tremendous responsibilities and experiences throughout their careers,” Parsons says. With that in mind, “Management should do anything they can to leverage that knowledge and help enable effective board oversight.”
