When a board makes a decision, they must ensure that the decision is backed by evidence and reflects the organization’s goals over the long-term. That means gathering information from a variety of sources, such as survey results, industry reports or competitor analysis as well as other information that supports the decision. It is also important to weigh the pros and cons of different options and determine which one is most likely to yield the desired result.
To make this happen, Board members should consider the ways in which a proposed course action is aligned with the company’s mission and vision while also considering any legal or regulatory requirements that might be required. Board members should be aware of the potential risks that could be posed by the decision, and ensure that the board’s willingness to take risks is taken into consideration.
It’s also helpful for boards to utilize methods designed to avoid groupthink, such as brainstorming, Six Thinking Hats, Disney Planning Method and Delphi Technique. It’s also helpful to allocate informal roles to particular Board members, such as “devil’s advocate” to challenge the ideas of others and help generate an array of ideas.
Boards may also come up with an policy for what and when they would like to be informed of any decisions which are slated to be voted on. This gives them time to read and discuss information prior to deciding. They can also ask questions and come up with alternative solutions. This helps reduce the burden on boards. I’ve seen instances where boards were given urgent information right before they were to vote, which could cause disruption and delay in the decision-making process.
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