To make sound decisions in a boardroom you need a combination open discussion, strategic analysis and technology. These strategies, when executed properly, can significantly enhance the ability of a board to make a decision and lead to the long-term sustainability of an business.
The first step is gathering all information that is available and making sure that it is in-depth, accurate trustworthy, relevant, and complete. This is the management’s responsibility and involves collecting data from both internal and external sources. It also involves conducting research and ensuring that the board is provided with timely, complete information.
After the data is collected, the next step is to consider the potential options that could solve the problem. This can be a long process, especially when trying to find consensus. Some boards employ techniques like the Six Thinking Hats Method or Disney Planning Method in order to avoid groupthink and promote an array of ideas to be considered.
The board must then decide on the best option to consider. This is usually based on a range of factors, including cost and impact. Scope can also be measured by the number of affected individuals (e.g. clients or employees). It is helpful to have a matrix that ties these criteria in with the overall governing principles for the https://boardmeetingtool.net/board-chair-responsibilities organization.
When the decision is made the board must communicate the decision in the minutes and describe how the decision was made. The document should include a rationale for the decision as well as a list of choices that were thought of, any advice sought and whether or not the requirements were met.