How to Elevate Board Management Decision Making

The ability to make decisions in the boardroom requires a mix of open discussion and strategic analysis, as well as leveraging technology. If done correctly, these strategies can dramatically increase a board’s decision-making capacity and lead to long-term sustainability for the organization.

The first step is gathering all the available information and ensure that it is reliable, complete, accurate and comprehensive. This is the responsibility of management and involves gathering information from internal and external sources, conducting research, and making sure that the board receives current, comprehensive information.

After the data has been gathered the next step is to determine the possible alternatives that can solve the issue. This can be a lengthy process, especially when attempting to reach a consensus. Some boards employ methods such as the Six Thinking Hats Method or Disney Planning Method in order to avoid groupthink and encourage an array of ideas of opinions to be considered.

The board then has to decide on the best option to pursue. This typically involves a range of factors such as cost and impact. Scope can be measured in terms of years, dollars or the number of people impacted (e.g., clients or staff). It is useful to have a framework that connects these requirements with the general governing principles that govern the https://boardmeetingtool.net/board-chair-responsibilities company.

The board must explain how it came to its decision in the minutes. This will include the rationale for the decision, a list of the options that were considered the advice sought, what criteria were in place or not.