The ability to make decisions within the boardroom requires a mix of open discussion with strategic analysis and the use of technology. When done well these strategies can drastically elevate a board’s decision making capacity and create long-term sustainability for an organization.

The first step is collecting all information that is available and making sure that it is complete, accurate pertinent, reliable, and complete. This is the management’s responsibility and involves gathering https://boardmeetingtool.net/leading-software-to-improve-board-management-decision-making information from both internal and external sources. It also involves conducting research and making sure that the board receives timely and complete information.

After the data has been gathered, the next step is to consider the potential options that could solve the issue. This can be a lengthy process, particularly when trying to reach a consensus. Some boards employ methods like the Six Thinking Hats or Disney Planning Method to stop groupthink and encourage all possible options to be considered.

The board has to then decide on the best option to pursue. This typically involves a range of factors that include cost and impact. Scope can also be measured by the number of affected people (e.g. employees or clients). It is useful to have a framework that connects these requirements with the board’s general principles of governance for the organization.

When the decision is made the board must clearly document the decision in the minutes and explain the process by which it was reached. The minutes should contain the reasoning for the decision and a list of options that were considered, any advice sought and what criteria were fulfilled or not met.