Business Meetings
Written by Dianne Gilbert, Fathom Business Architects
Who doesn’t get tired of sitting in endless meetings? Who thinks that the best meeting consists of three people, two of whom are absent?
Much maligned, but necessary, most businesses are run on meetings, and any business consisting of more than a single individual is likely to conduct them - both formal and informal.
Steve Kay estimates that companies can waste up to 20% of their payroll on bad meetingsMost of us have also been involved in very productive meetings, too.
What makes the difference between a useful meeting and a waste of time?
Four
If you can get the four key elements right then the rest will generally follow.
The first is the constitution. This term is most often used in relation to very formal meetings and collaborations, but it is relevant to less formal meetings as well. The constitution sets out the objectives and the powers of the meeting. It can also describe how to proceed when the meeting can’t agree, how to handle a shortfall in numbers of attendees, and when a participant may have a conflict of interest.
Only in the most formal of meetings will a constitution need to be written, such as for Board (Director) Meetings, or formally constituted councils. However, even the least formal meeting should given consideration to the objectives and authority of the meeting.
The second element is an agenda.
A meeting without an agenda is like a journey without a map.
We know this, but do we always plan what to discuss? We know that a good plan can halve the time in the doing. An agenda is a simple list of the topics to be addressed.
If well structured and managed, meetings can be productive and useful. |
Meetings are conducted at different levels in a organisation, include different participants and for different purposes. Some of purposes include – meeting legal requirements, meeting certification requirements, and to co-ordinate operational activities across the business.
This paper sets out some of the key objectives and features of the following three types of meetings - Directors/Board meetings, Management meetings and Operational meetings.
Board Meetings
Board meetings are where the directors of a company come together, in a duly constituted manner, in order to debate and decide the business of the company. They typically occur once a month, but every board needs to consider what meeting timetable best fits its company’s circumstances. More frequent meetings may be needed, for example, when urgent matters arise.
The Australian Federal Corporations Act 2001 stipulates that board meetings review annual financial accounts and determine whether the business is insolvent or not. The law also states that meetings must be conducted properly according to statutory provisions, the organisation’s constitution or common law, otherwise business transacted in that meeting may be null and void.
However, the best board meetings go beyond legal requirements and also insist on:
1. Well informed debate encompassing diverse perspectives.
2. Clear, actionable and timely decisions on the long term issues, risks and objectives.
3. Concrete strategies as to how the rest of the company can implement objectives to maximise profit.
A properly conducted board meeting requires:
- Notice of the meeting be circulated to all participants formally advising the purpose and giving
- notice of any special business to be discussed
- Agenda is circulated. This is usually included with the notice of meeting, and sets out the items
- of business to be dealt with in the meeting.
- The meeting reviews the annual financial accounts. The Corporations Act 2001 stipulates that board meetings ensure the production of the annual financial accounts and the prevention of insolvent trading.
- Guidelines for the proper conduct and management of meetings are set out. This is usually
- contained in the constitution of the business, which includes provisions for voting, quorum, and other matters.
- Minutes of the meeting, including resolutions and agreed actions, are recorded and circulated as soon as possible following the meeting. The Corporations Act 2001 (S251A) states that minutes should be completed within one (1) month of the meeting.
Board meetings thus have important legal, practical and financial consequences for the company as a whole. For this reason, getting the process right is of paramount importance.
Management Meetings
Management meetings are where the managers of a business come together on a regular basis to discuss the performance of the business. Whereas board meetings may focus on legal, financial and strategic aspects of the business, this meeting is more about the overall performance of the business against the business plan and other targets.
Many small businesses combine both the board and management meetings. This can be an efficient approach, as the directors and managers of small businesses are usually the same people, and there can also be overlap in the topics.
As for board meetings, management meetings should be conducted regularly, usually monthly, and should have clear agenda and minutes. Actions agreed in one meeting should be reviewed in the subsequent meeting.
Management meetings are a key requirement for business which have a certified management system. Such certifications include one of the quality standards, such as ISO 9001 Quality Management Systems, ISO 4801 Occupational Health and Safety and ISO 14001 Environmental Management Systems, and industry standards such as the RCSA Service Delivery Standard (RCSA SD).
Whilst there is more scope for flexibility in the conduct and scope of management meetings than board meetings there are nonetheless some important requirements:
- Agenda is circulated prior to the meeting, together with any reports and submissions for review.
- Minutes of the meeting, including decisions and agreed actions, should be recorded and circulated as soon as possible following the meeting.
The agenda, participants and timing of management meetings will vary widely according to their purpose. However, there are some common areas to be addressed:
- Financial and operational performance against the business plan and other targets
- Update on business and operational risks
- Feedback from customers on products and services, including complaints
- Measures on the quality of products and services delivered against targets, and any issues or problems which could affect this
- Level of compliance against defined business procedures and quality targets, as well as against a standard where relevant, and any actions needed to improve this.
Management meetings are an important part of the management of the performance of the business.
Operational Meetings
Operational meeting is the term we use to describe meetings of the people who “do the work”. They may also be called team meetings, weekly meetings, one-on-ones, progress meetings, updates etc. The purpose of these types of meetings is to ensure staff are aware of the daily or weekly priorities for the areas in which they work.
Typically these meetings provide a forum for discussing operational matters such as progress on outstanding jobs, alerts on upcoming jobs, identifying any shortages or issues which may impact deliverables or deadlines etc.
These meetings are often quick and responding to current issues; formally preparing agendas or minutes are often not required or useful. However it is always important to record agreed decisions and actions so these can be referred to later.
Although there are many various forms of meetings, there are the three core meetings, and the meetings most commonly conducted across all businesses.
