When a board makes a decision, the objective is to ensure that it supports the organization’s long-term objectives and is based on facts. This involves obtaining information from a variety of sources, such as industry reports, employee surveys and competitor analysis to back up the decision. It also involves weighing various options against each other and determining which option is most likely to achieve the desired results.
To make this happen, Board members should consider the extent to which a proposed plan of decision is in line with the company’s mission and vision while also considering any regulatory or legal requirements that might be involved. In addition, Board members should be aware of any risk associated with the decision, and ensure the board’s risk tolerance is considered in the process.
Boards can also benefit from techniques that are designed to avoid groupthink. These include brainstorming, Six Thinking Hats (a technique to avoid groupthink), Disney Planning Method, and Delphi Technique. It is also beneficial to allocate informal roles to particular Board members, for example “devil’s advocate” to challenge the thinking of others and generate several solutions.
Boards can also create policies on what and when they would like to be informed of any decisions which are slated for vote. This gives them the opportunity to review and discuss the information before voting. They can also ask questions and come up with alternatives. This approach also helps reduce board decision fatigue. In the past, I’ve been a part of situations in which urgent information has been presented to boards just before they are required to vote on it which could interfere with the decision-making process, and delay the decision-making process.
