Board Management Decision Making

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If a board makes the decision, it must ensure that the decision is backed by evidence and is in line with its goals in the long run. This involves gathering information from a range of sources, such as survey results, industry reports as well as competitor analysis, and other data points that help support the decision. It also involves weighing the various alternatives against one another and determining which option is most likely to deliver the desired results.

Board members should consider the alignment of a proposed course with the company’s mission and vision, and also any regulatory or legal requirements. Board members should also be aware of the risks that may be associated with a decision, and ensure the board’s risk-taking appetite is considered.

It is also beneficial for boards to employ strategies that prevent groupthink, like brainstorming, Six Thinking Hats, Disney Planning Method and Delphi Technique. It can be beneficial to assign informal roles to specific Board members, such as “devil’s advocate” to challenge other Board members to think differently and come up with various solutions.

Boards can also choose how and when to notify members of the upcoming vote. This gives them time to read and discuss information prior to deciding. They can also ask questions and come up with alternatives. This helps reduce the amount of fatigue that board members experience. In the past, I’ve had to deal with situations where urgent information has been provided to boards before they are required to vote on it, which can disrupt the decision-making process and derail the outcome.