Anthony Tjan in a recent post on his blog Upstarts and Titans discussed the CEO Memo to the Board that his firm requires of each of their portfolio companies. I thought this was a brilliant suggestion and one that should be adopted by all CEOs with advisory boards.

The purpose of the CEO Memo is to share with the board the top priorities for the upcoming year and the lessons learned for the past year.  Accordingly “it sets the big picture and creates an incredibly powerful mechanism for alignment between boards and CEOs.”

To summarize Tjan’s recommended approach to the CEO Memo:

1. The top priorities for the coming year should be no more than four to five and no new priorities can be added until one is completed.
2. The first priority is almost always:  “Achieve the financial plan.”
3. Priorities 2-5 should reflect the “top strategic initiatives” for the coming year.
4. Use the CEO Memo as a “recurring framework for update discussions and board meetings.”
5. Share with the Board and employees “what the most important lessons were of the past year and what they mean for the company going forward.”

By doing this exercise each member of the board and the CEO should be able to articulate at anytime:  “What the top three priorities are for the company in the upcoming year.”

What will you include in your CEO Memo this year?

Look for the Advisory Board Kit, A Comprehensive Guide to Establishing an Advisory Board, to be published in December. Please check the site in the coming weeks for order and related teleclass information.