The most effective quarterly board meetings drive portfolio company growth through strategic and productive value-focused discussions. Based on PE-CXO’s recent survey, however, these meetings frequently don’t meet the full potential of what they should deliver.
More than half of respondents reported that board meetings are an ineffective use of their time.
— PE-CXO Pulse Survey
Follow these four best practices to improve your board preparation process, encourage active engagement and unlock the full value creation potential of these meetings.
Tip #1: Keep the Focus on What Your Board Cares Most About
A board’s primary concern lies with the portfolio company’s exit value, and how performance aligns with the investment thesis. Tailor your board decks to align with the primary value creation levers within that thesis. For example, if your company’s investment thesis relies on customer retention, then make that an integral part of your presentation.
A common trap executives fall into during board meetings is an undue focus on how much they accomplished and ensuring the board is aware of the “busyness” of the leadership team. Instead, focus on results-oriented information, such as impacts on MOIC and IRR. Key metrics like employee retention, customer health, core financials, and GTM performance are all exit-focused benchmarks that need to be a key part of your presentation material. A board wants to know if those key results are on track with the investment thesis — and if not, then what’s being done to improve th...