In order to make good decisions in a boardroom you need a combination open discussion, strategic analysis and technology. If executed properly these strategies can drastically improve a board’s decision-making capacity and lead to long-term sustainability for the company.
The first step is gathering all the information available and make sure it is accurate, complete, credible and comprehensive. This is the management’s responsibility, and it involves collecting information from both internal and external sources. It also includes conducting research and making sure that the https://boardmeetingtool.net/board-chair-responsibilities/ board receives timely and comprehensive information.
After the data is collected The next step is to identify the options that might be able to resolve the issue. This is often a time-consuming process, especially when attempting to reach consensus. Some boards employ methods such as the Six Thinking Hats or Disney Planning Method to prevent groupthink and encourage all possible options to be thought about.
The board must choose which option to explore. This is usually based on a range of factors, including cost impact and scope. The scope of the project can also be measured by the number of people affected (e.g. employees or clients). It is beneficial to have a framework of delegated authority that connects these requirements to the overall guidelines of the board for the organisation.
The board should explain how it came to its decision in the minutes. This should include the reason for the decision, a list of the options considered or any advice sought, as well as what criteria were met or not met.