Board Management Decision Making

When a board takes the decision, it must ensure that the decision is backed by evidence and reflects its goals in the long term. This involves gathering information from a variety of sources, such as survey results, industry reports or competitor analysis as well as other data points that help support the decision. It is also important to consider different options and determine which one is most likely achieve the desired result.

To make this happen, Board members should consider how a proposed course of decision is in line with the company’s mission and vision as well as any regulatory or legal obligations that could be in play. Furthermore, Board members should be aware of the potential risks that may arise from the decision and ensure the board’s risk appetite is considered in the process.

It’s also helpful for boards to use strategies that prevent groupthink, such as brainstorming, Six Thinking Hats, Disney Planning Method and Delphi Technique. It is helpful to assign informal roles to certain Board members, for example “devil’s advocate” and “devil’s advocate” to challenge other members for their ideas and assist in generating several solutions.

Boards can also create policies on what and when they would like to be informed of decisions which are slated to vote. This allows them to take the time they need to examine and discuss the information prior voting, and also enables them to ask questions and consider alternatives. This helps to lessen the amount of fatigue that board members experience. I have seen situations where boards were provided with urgent information just before they were to vote, which could cause disruption and delay in the decision-making process.

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