The ability to make decisions in the boardroom requires a combination of open discussion and strategic analysis, as well as leveraging technology. These strategies, when executed well, can significantly improve the board’s ability to make decisions https://boardmeetingtool.net/what-is-a-strategy-and-why-it-is-important-for-any-field/ and contribute to the long-term sustainability of an business.
The first step is to gather all the available information and ensure that it’s authentic, complete, reliable and comprehensive. This is the management’s responsibility and involves gathering data from both internal and external sources. It also involves conducting research and making sure that the board receives timely and comprehensive information.
Once the data is gathered The next step is to consider the potential options that could solve the problem. This can be a lengthy process, especially when trying to reach consensus. Some boards employ techniques such as the Six Thinking Hats or Disney Planning Method to prevent groupthink and to encourage all possible options to be taken into consideration.
The board then has to decide which option it will take. This is usually based on a range of factors, including cost impact and the scope. Scope can be measured in terms of dollars, years or the number of people affected (e.g., clients or employees). It is helpful to have a matrix which ties these criteria with the board’s general governing principles that govern the organization.
When the decision is made the board must clearly announce the decision in the minutes and provide a description of how the decision was made. The minutes should include a reason for the choice along with a list of choices that were examined, any advice that was sought and whether or not the criteria were in fact met.
