When a board makes a decision, the goal is to ensure that it supports the long-term goals of the company and is based on evidence. This requires obtaining information from various sources, including surveys of employees, industry reports and competitor analyses, to support the decision. It is also essential to consider different alternatives and decide which will most likely to achieve the desired result.
To make this happen, Board members should consider how a proposed course of action aligns with the vision and mission of the company while also considering important source any regulatory or legal requirements that might be required. Board members should also be aware of the potential risks that may be associated with the decision, and ensure that the board’s appetite for risk is taken into consideration.
Boards can also benefit from techniques that are designed to prevent groupthink. This includes brainstorming, Six Thinking Hats (a method to prevent groupthink), Disney Planning Method and Delphi Technique. It is helpful to assign informal roles to specific Board members, like “devil’s advocate”, to challenge others in their ideas and to help come up with various solutions.
Boards may also come up with an policy for what and when they would like to be informed of decisions which are due to vote. This lets them take the time they need to examine and discuss the facts prior to voting, and also allows them to inquire about the decision and consider alternatives. This helps reduce the fatigue of board members. In the past, I have been party to situations where urgent information was presented to boards just before they are required to make a decision on it which can interfere with the decision-making process, and delay the decision-making process.
