The ability to make decisions within the boardroom requires a combination of open discussion and strategic analysis as well as the use of technology. If done correctly these strategies can elevate a board’s decision making capability and ensure long-term sustainability for the company.
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 responsibility of management and involves gathering data from both internal and external sources, conducting research, and ensuring that the board is receiving accurate, timely information.
After the information has been gathered, the next step is to identify https://boardmeetingtool.net/board-chair-responsibilities the possible alternatives that can solve the problem. This can be a lengthy process, particularly when trying to find consensus. Some boards employ methods like the Six Thinking Hats or Disney Planning Method to stop groupthink and to allow a full range of alternatives to be thought about.
The board must then decide which option it will take. This usually involves a variety of variables, including cost, impact, and the scope. Scope can be measured in terms of years, dollars or the number of people affected (e.g., clients or staff). It is useful to have a framework that connects these requirements with the board’s general governing principles that govern the organization.
The board must explain how it came to its decision in the minutes. The minutes should include a reason for the decision along with a list of options that were considered, any advice requested and whether or not the requirements were met.