How to Elevate Board Management Decision Making

The ability to make decisions in the boardroom requires a mix of open discussion and strategic analysis as well as the use of technology. When executed correctly these strategies can drastically elevate a board’s decision making capability and ensure long-term sustainability for the company.

The first step is to collect all the available information and verify that it is accurate, complete, credible and thorough. Management’s responsibility involves gathering data from internal and external sources, conducting research and ensuring that the board is receiving accurate, complete information.

After important source the data has been gathered the next step is to determine the possibilities of solutions to solve the issue. This can be a lengthy process, particularly when trying to reach consensus. Some boards employ techniques such as the Six Thinking Hats or Disney Planning Method to stop groupthink and to encourage an array of possibilities to be thought about.

The board has to decide which option to consider. This typically involves a number of factors such as cost and impact. Scope can also be measured by the number of affected individuals (e.g. employees or clients). It is helpful to have a matrix of delegated authority that ties these criteria into the board’s overall governing guidelines for the organisation.

The board must state the reasons for its decision in the minutes. This will include a rationale for the choice, a list with the alternatives that were examined, any advice that was sought, and whether or not the criteria were fulfilled.