How to Elevate Board Management Decision Making

The ability to make decisions within the boardroom requires a mix of open discussion with strategic analysis and the use of technology. These strategies, when executed well, can significantly improve a board’s ability to make decisions, and lead to the long-term viability of an company.

The first step is to gather important source all the information that is available and verify that it is authentic, complete, reliable, and in-depth. Management’s role involves gathering information from internal and external sources, conducting research and ensuring that the board receives accurate, complete information.

Once the data is gathered the next step is to consider the possibilities of solutions to resolve the issue. This can be a lengthy process, especially when trying to find consensus. Some boards employ techniques like the Six Thinking Hats Method or Disney Planning Method in order to avoid groupthink and promote a full range of opinions to be taken into consideration.

The board must decide which option to pursue. This is usually based on a range of variables, including cost, impact and the scope. Scope can also be measured by the number of people affected (e.g. clients or employees). It is helpful to have a framework of delegated power that ties these standards to the general guidelines for governance of the board for the organization.

When the decision has been made, the board must clearly document it in the minutes. It should also detail the process by which it was reached. This will include the reasons for the decision along with a list outlining the alternatives considered the advice sought, what criteria were satisfied or not met.