First Commonwealth Financial Corporation
FCFC
Assignment Questions
1. Will the BSC program at First Commonwealth provide Board members with the information they need to fulfill their governance responsibilities?
Does a board really need information beyond the results reported in a company’s monthly, quarterly and annual financial reports?
To engage board member’s expertise much more around the strategic direction that the company is taking would require giving different types of information to board and having different discussions in board meetings, but the effort to revamp the meeting process and agenda would be well worth the trouble. With only limited time available to review the information before the meetings and to perform their monitoring and governance functions, board members must receive the information that is most relevant to their governance responsibilities and that will enable them to more effectively participate in board meeting discussions. They should receive strategic, forward-looking information, rather than information that just summarizes the past, such as quarterly and annual financial statements. While boards still need to review past performance, that information should not take up 90 percent to 95 percent of a board meeting agenda as it so often does today. What’s more, company executives should make fewer, shorter, and more targeted presentation to board members and spend more time engaging them in interactive discussions. For the board to monitor strategy, it first must understand and approve the proposed strategy. Subsequently, it needs information on how well the strategy is being implemented and what results the strategy is delivering. Directors cannot infer from quarterly financial statements whether the company has selected a sensible customer value proposition, is focused on the critical processes to meet customer and shareholder expectations, and is investing well in its people and information resources. To help companies ensure
Assignment Questions
1. Will the BSC program at First Commonwealth provide Board members with the information they need to fulfill their governance responsibilities?
Does a board really need information beyond the results reported in a company’s monthly, quarterly and annual financial reports?
To engage board member’s expertise much more around the strategic direction that the company is taking would require giving different types of information to board and having different discussions in board meetings, but the effort to revamp the meeting process and agenda would be well worth the trouble. With only limited time available to review the information before the meetings and to perform their monitoring and governance functions, board members must receive the information that is most relevant to their governance responsibilities and that will enable them to more effectively participate in board meeting discussions. They should receive strategic, forward-looking information, rather than information that just summarizes the past, such as quarterly and annual financial statements. While boards still need to review past performance, that information should not take up 90 percent to 95 percent of a board meeting agenda as it so often does today. What’s more, company executives should make fewer, shorter, and more targeted presentation to board members and spend more time engaging them in interactive discussions. For the board to monitor strategy, it first must understand and approve the proposed strategy. Subsequently, it needs information on how well the strategy is being implemented and what results the strategy is delivering. Directors cannot infer from quarterly financial statements whether the company has selected a sensible customer value proposition, is focused on the critical processes to meet customer and shareholder expectations, and is investing well in its people and information resources. To help companies ensure