A Steering Committee is a group of key stakeholders for a project or organizational initiative. They oversee and support a project on the management level.
A good Steering Committee is a must for high-risk processes. They are a key part of mergers & acquisitions, fundraising, and company-wide changes. These processes involve many teams and decisions. A strong Steering Committee keeps everyone aligned and keeps the process moving in the right direction.
The tools a committee uses have a direct impact on its effectiveness, especially when it comes to managing the vast amounts of sensitive documentation in M&A deals.
Modern committees use virtual deal room solutions to govern, oversee, and keep data secure in mergers. This article outlines the key roles of a steering committee and how technology helps them succeed.
Roles and responsibilities of the steering committee
To make a powerful committee, it is crucial to understand the roles of each participant. This may sound straightforward. However, as the M&A community highlights, many executives on steering committees aren’t entirely sure what their role is or how to best help. In fact, very few fully understand the true depth of their oversight responsibilities.
The group should be a cross-functional team of the major stakeholders of the project outcome. The main responsibilities of steering committee members are:
| Role | Main responsibilities |
| Chairperson | Leads meetings, sets the agenda. The chairperson also makes sure decisions are made. |
| Project Lead | Reports on progress, explains issues, and carries out the committee’s decisions. |
| Finance Lead | Reviews budgets, costs, and approves spending. |
| Technical Lead | Advises on technology risks, security, and tools. |
| Stakeholder Rep | Speaks for the users or clients impacted by the project. |
| Secretary / Admin | Takes notes, shares updates, and tracks action items. |
A well-composed committee brings together different perspectives. C-suite executives, senior department heads, and other experts work together to guide the project from start to finish.
How technology supports steering committee oversight
A Steering Committee can only be as effective as the information it gets. If the updates are clear and arrive on time, the committee can make the right decisions. If not, even the best experts will struggle to guide the process well. In the context of an M&A transaction, this information includes multiple documents, such as:
- financial records
- legal contracts
- intellectual property filings, and more
Managing this manually can spread the due diligence phase into weeks, instead of hours. Additionally, it may cause data security risks if the information is not managed securely. This is where virtual data room software comes in.
Virtual data room solutions are secure online repositories. They are designed specifically for storing and sharing confidential information. For a Steering Committee, a VDR creates a secure space for a proactive and data-driven function.
Instead of waiting for compiled reports, committee members can access a single source of truth. They can monitor due diligence progress in real-time and see who and when has been watching the documents. And they can review Q&A logs without micromanaging the deal team. All these features help committee members make more informed decisions faster.
After all, to do its job, the Steering Committee needs information to be organized and secure. A virtual data room does exactly that.
Ensuring data security in mergers and acquisitions with VDRs
Perhaps the most non-negotiable responsibility of any Steering Committee is risk mitigation. And a primary risk in any deal is a data breach. As McMillan notices, a single breach can derail a transaction and leave both sides facing years of fallout. Some of the other consequences are data leakages, financial losses, and reputational damage.
To avoid this, companies use virtual data room software that offers robust security features. Think of bank-grade security that far exceeds what can be achieved with physical data rooms or simple cloud storage. Key security features include:
- Granular permission settings:
Control exactly which users can view, print, or download specific documents or folders. - Dynamic watermarking
Stamp documents with user-specific information like name, IP address, and date. This deters unauthorized sharing. - Remote wipe
Revoke access to downloaded documents even after they have left the virtual data room. - Detailed audit trails
Provide a complete record of every user action. This provides full visibility into document activity.
How virtual data rooms elevate document collaboration for Steering Committees
Besides top-level security, data rooms also make document collaboration during M&A easier. The due diligence process involves many questions and answers between buyers, sellers, and their advisors. Answering all of them via email can take multiple hours. And still, there is a chance to miss something or lose important details in the endless email chains.
A VDR centralizes this communication within the platform that is linked to the relevant documents. No more email chains. All questions get answered by the right person. Plus, there is a permanent record of all communication. This speeds up the deal and reduces friction so the Steering Committee can oversee a more efficient and secure process.
Best practices for running a Steering Committee
A Steering Committee works best when it follows clear and simple rules:
- Meet regularly.
During busy phases of an M&A deal, weekly or even daily check-ins may help. In quieter times, monthly updates can be enough. - Keep agendas short.
Focus on risks, progress, and decisions that need senior input. Leave detailed discussions to the deal team. - Use clear reporting.
Stick to a shared format so members can compare updates over time and spot problems early. - Assign ownership.
Every decision should have a clear owner and a deadline. Follow up in the next meeting. - Speak with one voice.
Steering Committee members often come from different backgrounds. But once a decision is made, they should support it together.
Summary
In its work, a Steering Committee relies on clear information and fast communication. VDR solutions cover those needs. With reliable data room software, Steering Committees can focus on strategy and results instead of paperwork and risks.
First of all, all documents are in a secure online space. Your financial records, legal contracts, and sensitive data are safe. Committees can track progress and manage questions and answers in one place. This removes endless email chains and reduces confusion.
Additionally, features like granular permissions, audit logs, and watermarks give control over every document. Overall, with a VDR, committees work faster and guide complex projects smoothly.
To read more content like this, explore The Brand Hopper
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