Board Management Decision Making

When a board makes a decision, it must ensure that the decision is backed by evidence and is in line with its goals in the long run. This requires obtaining information from multiple sources, such as industry reports, employee surveys and competitor analysis to support the decision. It is also essential to consider different alternatives and decide which is most likely to yield the desired result.

Board members should consider the alignment of a proposed course with the company’s mission and vision as well as any regulatory or legal requirements. Additionally, Board members should be aware of any risks associated with the decision, and ensure the board’s risk tolerance is considered when making the decision.

It’s also helpful for boards to implement methods that can help avoid groupthink, such as brainstorming, Six Thinking Hats, Disney Planning Method and Delphi Technique. It’s also beneficial to allocate informal roles to particular Board members such as “devil’s advocate” to challenge the ideas of others and help generate various solutions.

Boards can also formulate an policy for the manner and time they wish to be informed of any decisions that are coming up to vote. This lets them have the time they need to examine and discuss the facts prior to voting, and enables them to ask questions and consider other options. This approach helps reduce the level of fatigue experienced by board members. I’ve witnessed instances where boards were provided with urgent information right before they were to vote, which can cause disruption and delay in the decision-making process.

additional reading