Board Portals: No Assembly Required

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BoardLink also did its homework to inform the design and layout of its portal, which features calendars, news alerts, and a research center. The layout features tab navigation and sections for different committees, and a reference library for researching archival information.

With BoardLink, Thomson was aiming for secure, easy-to-use features. "We did a ton of research before we go into this, and we built a prototype based on that. Then we actually brought 30 directors into a research lab and let them play around with it,videotaped them, and let them complete the tasks," explains Greg Radner, senior vice president of corporate communications at Thomson.

What sets the portal apart from others, Radner says, is its security feature and service model. "We spent a lot of time getting [directors] trained and comfortable using the system," he says. "We make it easy to use, and that shows up in the results. Ninety percent log in every month."

"I would say 'ease-of-delivery' is the most obvious advantage," says Pitts of Wainwright, a Thomson Boardlink customer. "No printing, copying, no FedEx, and electronic delivery is totally secure."

Continues Pitts: "By far, the most precious commodity for directors is their time. Electronic delivery allows all the relevant information needed for routine decision-making to be delivered quickly, timely, and economically, in many cases freeing up time that can be used for having a dialogue on strategy and policy."

BoardVantage

BoardVantage, which provides its portal service to about 160 customers— nearly half in the Fortune 500—has been around for five years. BoardVantage CEO Joe Ruck says he's worked with directors from both ends of the technology spectrum: some are more progressive, while others would rather only deal with email and nothing more in terms of electronic communication. "That's a reality in this business that you're going to have to deal with," he says. And that's why ease-of-use is such a high priority for BoardVantage. On the security side, BoardVantage offers its own twofactor identification. In addition to a personal password, directors use a private key encryption or answer a challenge question. Directors, as a result, can access the portal from any location.

For Bruce Crockett, director of ACE Limited, which has been using BoardVantage for about two years, the attraction was how quickly he became used to it. "I was able to get the hang of it in about 15 minutes on the phone," he says, stressing that no one actually had to help him in person. "I think it's sensational."

Crockett said he would enjoy seeing his board go paperless, and in using a portal, it may just happen. "The way the board flows, you don't even really need paper," he says. "The resolutions get handed out in hard copy, but in general, the presentation is flowed through [Microsoft] PowerPoint and slide decks. Save the trees."

Leaders4 Board Information Management by 80-20

More than 50 large companies are using 80-20's Leaders4 BIM portal. The provider has been a player in the software market since 1997, developing solutions designed to streamline governance, risk, and compliance management. Leaders4 creates a local and encrypted version of selected material that allows authorized directors and other executives to access material from the portal anywhere at any time.

Leaders4 offers two principal methodologies. The first is a licensed model, meaning that users purchase a perpetual license to the software, which includes training, installation, and support, but only runs on a particular company's data server. Second, there is the option of an ASP model, "which means that we will give you access to the software that runs on a server in a data center that we manage," says Nelson French, executive vice president of North American sales for 80-20. "So, nothing runs in your shop, everything is through your browser."

Some directors enjoy having both options. "It was the only option available that let us control our data and didn't put it in the hands and control of a third party," says Robert Flax, senior counsel for the California State Automobile Association (CSAA), which has been using Leaders4 since 2004. Flax says CSAA directors, while open to the idea of migrating to a portal, were varied in their opinions about completely abolishing hard-copy board books. "They all love the idea that [the portal] is there, but I would say there is a large spectrum of directors who say, 'That's nice, but send me the books anyway'."

The portal also offers several features, such as a "Reading Room" facility where users can monitor daily company and market activities. A governance and compliance framework facilitates effective communication of governance demands and visibility of compliance status—such as with sections 404 and 302 of Sarbanes-Oxley—at the board level.

Before adopting Leaders4, Flax says it would take nearlyfour months for him to manually collect and certify data, but having portal access has shortened the time for those tasks to just two weeks. "Basically, what we have is an electronic way of gathering information and having it reposed in one place where we can customize the data, " he notes.

Other Players in the Portal Game

While the board-portal market has been limited to a small number of providers, more vendors have begun to emerge. Some, such as BoardWorks, are targeting non-profit boards, as well as the boards of smaller or younger organization with price points to match. Meanwhile, other providers, such as BoardEffect, IntraLinks, and Info- Street, compete directly with BoardLink and BoardVantage. Endexx has gone a step further, offering solutions not just for corporate boards, but for more vertical markets such as school boards. Its portal allows school districts throughout the country to better adhere to state rules, and also help organize and report on school-related materials.

No matter what the industry or size of the company, board portals are offering efficient ways of facilitating the board process. As the potential market continues to expand with new solutions, functionality, and features, more boards are exploring how to best move their activities online.

Provided by Directorship—The Leading Publication for Boardroom Intelligence