Board Management Decision Making

If a board makes a decision, they must ensure that the decision is supported by evidence and supports the goals of the company in the long haul. That means gathering information from a range of sources, such as studies of the industry, employee surveys, competitor analysis and other data points that support the decision. It is also important to weigh different options and figure out which is most likely to yield the desired outcome.

To do so, Board members should consider how a proposed course of action aligns with the vision and mission of the company while also considering any regulatory or legal 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 tolerance for risk is taken into consideration.

Boards are also able to benefit from strategies that are designed to prevent groupthink. This includes brainstorming, Six Thinking Hats (a technique to avoid groupthink), Disney https://boardmeetingtool.net/what-is-a-strategy-and-why-it-is-important-for-any-field/ Planning Method, and Delphi Technique. It's helpful to assign informal roles to specific Board members, for example "devil’s advocate" or "devil's advocate," to challenge others for their ideas and assist in generating many solutions.

Boards also have the option of deciding how and when to inform members about the upcoming vote. This gives them time to discuss and read information prior to deciding. They can also ask questions and develop alternative options. This approach also helps reduce the fatigue of board members. I have witnessed situations where boards were given urgent information right before they were required to vote, which can cause disruption and delay in the decision-making process.

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