The ability to make decisions in the boardroom requires a my link combination of open discussion and strategic analysis as well as the use of technology. If done correctly, these strategies can dramatically enhance a board’s decision making capacity and result in long-term sustainability for an organization.
The first step is to gather all the available information and make sure it is reliable, complete, and in-depth. Management’s responsibility involves gathering data from both internal and external sources, conducting research and ensuring that the board is receiving accurate, complete information.
After the data is gathered, the next stage is to find the potential options to solve the problem. This can be a long process, particularly when trying to come to a consensus. Some boards employ methods such as the Six Thinking Hats Method or Disney Planning Method in order to prevent groupthink and allow all options to be taken into consideration.
The board has to then decide on the best option to pursue. This typically involves a number of factors, including 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 important to have a framework which ties these criteria with the overall governing principles 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 and a list of possible options the advice sought, the criteria that were fulfilled or not.