How to Elevate Board Management Decision Making

To make the right decisions in a boardroom you must have a mix of open discussion, strategic analysis, and technology. When done well these strategies can enhance a board’s decision making capability and ensure long-term sustainability of the company.

The first step is gathering all the information available and make sure it is reliable, complete and comprehensive. This is the responsibility of management and includes gathering data from internal and external sources, conducting research and ensuring that the board receives current, comprehensive information.

Once the data is gathered the next step is identifying the options that might be able to solve the issue. This can be a lengthy process, especially when attempting to reach a 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 considered.

The board has to decide on the best option to explore. This typically involves a number of factors such as cost and the impact. Scope can be measured in terms of years, dollars or the number of people impacted (e.g. clients, customers or staff). It is helpful to have a list of delegated power that ties these requirements to the general guidelines for governance of the board for the company.

The board has to explain the reasoning behind its decision in the minutes. The minutes should contain the reasoning for the decision as well as a list of alternatives considered or any advice sought, as well as what criteria were in place or not.

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