8/2/2019 Information Architechture
1/29
Click to edit Master subtitle style4/14/12
4. INFORMATION ARCHITECTURE
Boards that
8/2/2019 Information Architechture
2/29
Boards that
4/14/12
INFORMATION ARCHITECTURE
Describes all of the ways the board gets
information
a) Communications from management in
preparation for board meetings or
b) Planned visits by directors to company sites.
It specifies what kinds of information
the board will get when, and in what
8/2/2019 Information Architechture
3/29
4/14/12
What is desirable information
Differs for different directors criteria/relevance
Right Information (Quantity/ Substance), Right
Format, Right Time
What is undesirable information
Jargon
Too much information
Scripted Power point presentation
8/2/2019 Information Architechture
4/29
4/14/12
Effects of unarchitectured information
8/2/2019 Information Architechture
5/29
4/14/12
Desirable Situation
8/2/2019 Information Architechture
6/29
4/14/12
Designing the InformationArchitecture
5 Channels
8/2/2019 Information Architechture
7/29
4/14/12
Kind of Information
How money is made (long and short term)
Measures that showcompanys progress ordeterioration relative to the externalenvironment
Subjective information that reveals theassumptions and conceptual thinkingunderlying managements proposals anddecisions
8/2/2019 Information Architechture
8/29
Click to edit Master subtitle style4/14/12
Channel 1:
Board
Briefing
8/2/2019 Information Architechture
9/29
4/14/12
Board Briefing (An e.g.)
Financial & performance information:
Projections for each biz unit, once introductory page,
easy for directors to penetrate the data and questionnature of operating cash flow trends
HR report: Proposed change in organizational
structure, analytical pros and cons of the change, save
time to debate the change
8/2/2019 Information Architechture
10/29
4/14/12
EssentialIngredients
Financial information
Where is cash going, business by business?
Where is cash coming from?
How is cash allocated and why?
Cash Flow : Companys historical performance,present condition, and future capabilities.
Performance indicators :
link between customers and cash flow
8/2/2019 Information Architechture
11/29
4/14/12
Managements commentary
Management will commit time to produce thoughtful and
accurate commentary
Should be candid/non sugar coated
Financial commentary gets directors mental wheels
turning cut meeting time by >50%
8/2/2019 Information Architechture
12/29
Click to edit Master subtitle style4/14/12
Channel 2:
Management
Letters
8/2/2019 Information Architechture
13/29
4/14/12
Management Letter A useful tool for communication between the CEO
and the board of directors.
CEOs need to establish a way to keep
directors informed about company
affairs between board meetings.
8/2/2019 Information Architechture
14/29
4/14/12
What should it consist of ?
8/2/2019 Information Architechture
15/29
4/14/12
FORMS
8/2/2019 Information Architechture
16/29
4/14/12
Essentials of a Management Letter Good Communication Skills
Written letters concise, interesting and to thepoint.
Oral Statements brief, informal and openended.
8/2/2019 Information Architechture
17/29
Click to edit Master subtitle style4/14/12
Channel 3:Employee
Surveys
8/2/2019 Information Architechture
18/29
4/14/12
Employee Surveys
Boards have an implicit responsibility to understand the
company at employee levels.
One tool that can be used for this is Employee Survey
targeted at specific topics that are important to company &
board.
Boards can ask the management to carry surveys at the
employee level by the third party to study company
culture or the like at the time of merger
between two companies with different
8/2/2019 Information Architechture
19/29
4/14/12
Example
At the time of merger/acquisition it
was important for a company to
know whether the two companies
with different cultures will gel well
at the employee level.
The management outsourced a
8/2/2019 Information Architechture
20/29
4/14/12
Survey Results
The integration was proceeding well, though
there was ambiguity in the decision making of one
business unit & criteria for resource allocation
was not fully optimized.
The survey analysis gave the board direction onwhich areas to ask management about in
forthcoming meetings.
8/2/2019 Information Architechture
21/29
Click to edit Master subtitle style4/14/12
Channel 4:Director
Outreach
8/2/2019 Information Architechture
22/29
4/14/12
Director Outreach
Directors should schedule face time with
employees, division managers, customers &
suppliers.
Gives Directors a better sense for customer
service, internal culture and the companys value
proposition.
Regular site visits to manufacturing plants, retail
outlets or satellite offices.
8/2/2019 Information Architechture
23/29
4/14/12
What if I burneddown?..All of a sudden,
youd shut down an entire
industry across the
continent. Thats the kind a
thing that doesnt come out
unless you go out in the
field and start asking field
managers questions. To
8/2/2019 Information Architechture
24/29
4/14/12
Internal & External Auditors Important information sources
Strengthening informal communication with
internal auditors helps open that channel.
Frequent meetings create familiarity making thestaff more comfortable communicating with
committee members.
8/2/2019 Information Architechture
25/29
Click to edit Master subtitle style4/14/12
Channel 5:
Reports from
Committees
8/2/2019 Information Architechture
26/29
4/14/12
The work of the board needs to be divided,which is why the board has committees.
8/2/2019 Information Architechture
27/29
4/14/12
Role of the Committees
Bring recommendations to the full board leavingthe decision making to the full board.
Recommendations need to be presented clearlywith proper reasoning.
Make sure the entire board debates andunderstands crucial issues.
Undertake some of the nitty gritty work forwhich trust becomes an underlying basis.
Saves time for the board to discuss moreimportant issues.
8/2/2019 Information Architechture
28/29
4/14/12
Conclusion
Tension: Directors are requesting so much information on
committee deliberations that the committee work is
simply repeated in the board meeting.
Ways to make the board efficient: Invite all directors to sit in on all committee
meetings, to be open and inclusive for the morecurious of the directors.
Set aside ample time for the board to debrief thecommittees.
Key facts should be summarized by committees
8/2/2019 Information Architechture
29/29
4/14/12
THANKYOUBianca Luis (510)
Caroline Fernandes(511)
Deepti Kharpas (512)
Rachael Alvares(543)
Rahul Dsa (544)
Recommended