12 Sep Board Management Decision Making
When a board makes a decision, it must ensure that the decision is backed by evidence that supports the organization’s goals over the long-term. This means obtaining information from different sources, such as industry reports, employee surveys and competitor analyses, to support the decision. It also involves weighing different alternatives against one another and determining which is most likely to deliver https://boardmeetingtool.net/ the desired outcomes.
Board members must take into consideration the alignment of the proposed course with the company’s mission and vision as well as any legal or regulatory requirements. Board members should also be aware of the potential risks that could be posed by the decision, and ensure that the board’s willingness to take risks is considered.
It’s also helpful for boards to implement strategies that prevent groupthink, such as brainstorming, Six Thinking Hats, Disney Planning Method and Delphi Technique. It’s helpful to assign informal roles to certain Board members, like “devil’s advocate”, to challenge others in their ideas and to help come up with many solutions.
Boards can also decide on how and when to inform members of the upcoming vote. This allows them to review and discuss the information prior to voting. They can also ask questions and formulate alternative options. This helps to lessen the amount of fatigue that board members experience. In the past, I’ve been a part of situations in which urgent information has been presented to boards just before they are expected to make a decision on it, which can disrupt the decision-making process and impede the final outcome.
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