When a board takes an important decision, the aim is to ensure that it supports the organization’s long-term objectives and is based on evidence. This requires gathering information from a range of sources, including industry reports, employee surveys as well as competitor analysis, and other data points that support the decision. It also involves weighing several options against each other and determining which is the most likely to yield the desired results.
To do this, Board members should consider how a proposed course of action aligns with the vision and mission of the company, while considering any regulatory or legal requirements that could be involved. Board members should be aware of the risks that could arise from making a decision and ensure the board’s risk-taking appetite is considered.
Boards are also able to benefit from strategies that are designed to avoid 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 certain Board members, like “devil’s advocate” and “devil’s advocate” to challenge other members’ ideas and help generate several solutions.
Boards may also come up with guidelines on when and how they want to be informed about decisions which are due to be voted on. This gives them time to read and discuss information before voting. They can also ask questions and develop alternatives. This helps reduce the level of fatigue experienced by board members. In the past, I’ve been party to situations where urgent information has been presented to boards prior to when they are expected to decide on it which can interfere with the decision-making process, and delay the decision-making process.