A best-in-class board may have a significant impact on an organization’s success. A modern, digitally-infused boardroom helps directors become more productive by sharing knowledge and information. A board portal supports ongoing communication between the corporate secretary, directors and executive team in real time and via a web browser, tablet app or smartphone app.
Here are four must-haves for a modern digital boardroom:
1. Good governance practices improve board efficiency and results.
Board governance isn’t just what happens during meetings. Instead, collaboration and information sharing occur continuously. A board portal should support this ongoing communication, collaboration and decision-making. It should also allow corporate secretaries to schedule board meetings; develop and share meeting agendas, minutes and board books; upload the most up-to-date reports and information; facilitate meeting minute review and approvals; and create, assign and monitor action items.
2. Collaborative tools enhance board engagement and decision-making.
Collaboration is critical in building trust and stronger relationships between board members and the executive team. Directors need to quickly share information — sometimes in real time — in an environment protected by multiple layers of security.
A board portal platform should allow directors to interactively share and access information as they develop action plans and strategies. It should also allow new board members to immerse themselves in the company’s culture, operating environment, financial performance and risks to get up to speed and become a meaningful contributor quickly.
3. Performance evaluations facilitate alignment.
Board performance evaluations help improve communication and collaboration, and positively impact business performance. A board portal should allow an organization to evaluate the individual performance of directors and assess whether the composition of the board is appropriate for achieving the organization’s long-term strategic goals.
Cooperation between directors and the CEO is critical. A board portal should allow the board to privately discuss CEO performance and also facilitate the alignment of the board and the CEO.
4. Multi-level security helps protect confidentiality, integrity and availability of data.
Board documents and communications are often highly confidential, and cybercriminals are increasingly sophisticated in hacking into board data. Standard email or chats may not have multiple layers of security that this sensitive information demands.
The board portal is SOC 2 Type II audited and the Information Security Management System (ISMS) that governs the information assets, business operations and physical locations for the board portal conforms to ISO 27001 requirements and is ISO 27001 certified.
By keeping the contents of the board portal centralized, the administrator can verify that e-discovery and retention policies are followed. The administrator can also remotely purge board member devices periodically, or if a device is lost or stolen.
A board portal that supports governance, collaboration and performance evaluations in a multi-level security environment helps transform board efficiency and allow the board to prepare the organization for the future.
For more information about improving governance and achieving a new level of effectiveness at your organization, download our eBook, Building the Boardroom of Tomorrow.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.