Board Management Decision Making

When a board makes an important decision, the aim is to ensure it supports the organization’s long-term goals and is based on evidence. This involves obtaining information from different sources, including industry reports, employee surveys and competitor analyses to support the decision. It also involves weighing various alternatives against each other and determining which is the most likely to deliver the desired outcomes.

To do so, Board members should consider the extent to which a proposed plan of action aligns with the company’s mission and vision as well as any legal or regulatory obligations that could be in play. Board members should also be aware of the risks that could arise from making a decision and ensure the board’s risk-taking appetite is considered.

Boards may also benefit from strategies that are designed to prevent groupthink. This includes brainstorming, Six Thinking Hats (a method to prevent groupthink), Disney Planning Method, and Delphi Technique. It is also beneficial to assign informal roles to specific Board members, for example “devil’s advocate” to challenge the views of other members and to help come up with an array of ideas.

Boards can also develop policies on what and when they would like to be informed about decisions that are coming up for vote. This allows them to spend the time needed to review and discuss the information prior to voting, as well as allows them to ask questions and formulate other options. This method helps to reduce the level of fatigue experienced by board members. I’ve witnessed instances where boards were provided with urgent information just before they were expected to vote, which could delay and disrupt the decision-making process.

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