Increasing Efficiency with Board Portals

It’s clear that technology is rapidly entering boardrooms and more and more boards have moved, or are moving to, a board portal. But there is still some question as to how these solutions are commonly used, and if directors are adapting comfortably to the new online environment. Learning new systems, and accessing information in an entirely new way are often sited as the main deterrents to switching to an electronic solution, and prove a serious stumbling block for corporate secretaries keen to embrace the efficiencies and economies that can be achieved.

In an effort to find out more, KPMG’s audit Committee Institute and Corporate Secretary recently conducted a joint survey looking at the movement toward board portals: how common they are, how they’re typically used, how often they’re updated, as well as questions about security concerns.

Key findings included:

• One out of two companies polled uses a board portal. Half of survey respondents said their companies currently use a board portal, and 20 percent expect to in the next six to 12 months.
• Portal security is a significant concern. More than 75 percent of respondents expressed some degree of concern about portal security, with 38 percent being ‘very concerned’. Some 32 percent reported that certain ‘sensitive’ information is not posted to the portal, while 68 percent said their companies post all pertinent board information.
• Posting pre-meeting board materials and updating the board between meetings are the two most common uses for portals. Companies are also using their portals to provide updates on the activities of board committees (41 percent); enable real-time communications and collaboration between board members (17 percent); and facilitate information, communications and Q&A between directors and management (11 percent). Portals are also being used to support board self-evaluations and surveys (including consent agenda items), and as a repository for board minutes, company information and more.
• Most companies update their portal on a real-time basis. Some 70 percent said their portal is updated ‘real-time, as needed’. The remaining 30 percent said they update their portal monthly, quarterly or weekly.
• Portals are improving board efficiency, but many directors have difficulty adapting to the technology. More than half of respondents (55 percent) said the portals have improved their board’s efficiency (though 40 percent were ‘not sure’), and while 36 percent said the board has ‘adapted easily’ to portal technology, 64 percent said that some or most board members have had difficulty adapting.

The survey results suggest that many boards are still ‘finding their way’ with board portal technologies, but some positive trends, best practices and lessons also surfaced. One executive said his board chairman was, “enthusiastic about moving the board materials online, provided that any new system would be simple to use and, above all, would keep confidential documents secure.” (from ‘Leading a Board at the Speed of Instant’, The Corporate Board, March/April 2011).

Simplicity and security should be regarded as table stakes when considering a move to any board portal. But the best way to get a board accustomed to the idea, is to address how it will be used and then establish an environment of collaboration and adaptation on the part of directors, management and the IT team to ensure a smooth transition. Hurdles may remain, but there is positive news for corporate secretaries and board administrators who understand the benefits of moving to a board portal.

To read more about the survey, its findings and board implementation tips, follow this link: http://www.corporatesecretary.com/articles/boardrooms/11966/improving-efficiency-board-portals/

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