The ability to make decisions in the boardroom requires a mix of open discussion and strategic analysis as well as the use of technology. If done correctly these strategies can drastically improve a board’s decision-making capacity and lead to long-term sustainability of the company.
The first step is gathering all available information and making sure that it is complete, accurate, credible, relevant and complete. Management’s responsibility involves gathering data from both internal and external sources, conducting research and making sure that the board receives timely, comprehensive information.
After the data has been gathered, the next step is to find the potential solutions to the issue. This can be a lengthy procedure, particularly when trying to reach a consensus. Certain boards https://boardmeetingtool.net/leading-software-to-improve-board-management-decision-making/ employ methods like the Six Thinking Hats Method or Disney Planning Method in order to avoid groupthink, and also encourage a full range of opinions to be considered.
The board then has to choose which option to explore. This typically involves a number of factors, including cost and impact. The scope of the project can also be measured by the number of affected individuals (e.g. clients or employees). It is useful to have a framework of delegated authority which ties these criteria to the board’s overall governing guidelines for the company.
The board must state how it came to its decision in the minutes. This will include the reasons for the decision along with a list outlining the options that were considered or any advice sought, as well as the criteria that were in place or not met.