How to Elevate Board Management Decision Making

In order to make good decisions in a boardroom you require a combination of open discussion, strategic analysis and technology. When executed correctly these strategies can significantly elevate a board’s decision making capacity and result in long-term sustainability of the company.

The first step is to gather all the available information and make sure it is authentic, complete, reliable, and in-depth. This is management’s responsibility and involves gathering information from internal and external sources, conducting research and making sure that the board is receiving accurate, timely information.

Once the data has been gathered The next step is identifying the possible solutions that could resolve the issue. This can be a lengthy process, particularly when trying to come to a consensus. Some boards employ methods such as the Six Thinking Hats Method or Disney Planning Method in order to prevent groupthink and allow a full range to be thought about.

The board will then have to decide which option it will consider. This typically involves a number of factors, including cost impact, and scope. Scope can also be measured by the number of affected people (e.g. employees or clients). It is helpful to have a matrix of delegated power that ties these requirements to the overall governing guidelines of the board for the organisation.

When the decision has been made the board must clearly announce it in the minutes. It should also explain the process by which it was reached. This will include a rationale for the choice and a list of the possible options considered, any advice requested, and whether or not the requirements were met.

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