The ability to make decisions in the boardroom requires a mix of open discussion with strategic analysis and the use of technology. These strategies, when executed effectively, can greatly enhance the ability of a board to make a decision and lead to the long-term viability of an organization.

The first step is acquiring all information available and making sure that it is thorough, accurate pertinent, reliable, and complete. Management’s role involves gathering data from internal and external sources, conducting research and ensuring that the board is receiving accurate, timely information.

Once the data is gathered, the next step is to consider the possible solutions that could solve the issue. This can be a lengthy process, especially when trying to reach consensus. Certain boards employ methods such as the Six Thinking Hats or Disney Planning Method to avoid groupthink and encourage an array of possibilities to be taken into consideration.

The board has to then decide on the best option to take. This is usually based on a range of factors, including cost and impact. Scope can be measured by the number of affected people (e.g. clients or employees). It is important to have a framework that connects these criteria with the board’s general governing principles that govern the company.

After the decision is taken the board must clearly document it in the minutes and describe the process by which it was reached. The minutes should contain the reasoning for the decision and a list of possible options or any advice sought, as well as what criteria were satisfied or not met.

board management decision making