When a board makes a decision, they must ensure that the decision is supported by evidence that supports its goals in the long-term. That means gathering information from a range of sources, such as reports from the industry, employee surveys as well as competitor analysis and other information that supports the decision. It is also crucial to weigh the pros and cons of different options and determine which one will most likely to achieve the desired outcome.

To make this happen, Board members should consider the ways in which a proposed course action is aligned with the company’s vision and mission as well as any legal or regulatory requirements that could be in play. Additionally, Board members should be aware of any risks associated with the decision and ensure that the board’s risk appetite is considered in the decision-making process.

It is also beneficial for boards to employ methods that can help avoid groupthink, such as brainstorming, Six Thinking Hats, Disney Planning Method and Delphi Technique. It’s helpful to assign informal roles to specific Board members, like “devil’s advocate” or “devil’s advocate,” to challenge others’ ideas and help generate many solutions.

Boards may also come up with guidelines on how and when they want to be informed of decisions which are due to be put to a vote. This lets them spend the time needed to review and discuss the information before voting, and it allows them to ask questions and consider other options. This helps reduce the amount of fatigue that board members experience. In the https://boardmeetingtool.net/what-is-a-strategy-and-why-it-is-important-for-any-field/ past, I’ve had to deal with situations where urgent information was presented to boards just before they are expected to make a decision on it which could hinder the decision-making process and impede the final outcome.