When a board of directors makes the decision, it must ensure that the decision is supported by evidence and is in line with the organization’s goals over the long haul. This requires gathering information from a variety of sources, such as survey results, industry reports as well as competitor analysis, and other data points that support the decision. It is also crucial to consider different options and figure out which is most likely to produce the desired outcome.
To do so, Board members should consider the way in which a proposed course of decision is in line with the company’s mission and vision and also consider any regulatory or legal obligations that could be involved. Board members should also be aware of the potential risks that could arise from making a decision and ensure the board’s risk-taking appetite is taken into consideration.
Boards may also benefit from strategies that are designed to avoid groupthink. This includes brainstorming, Six Thinking Hats (a technique to avoid groupthink), Disney Planning Method and Delphi Technique. It’s also helpful to assign 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 can also develop guidelines on what and when they would like to be informed of decisions that are scheduled to additional reading be put to a vote. This allows them the time to discuss and read information prior to deciding. They can also ask questions or formulate alternatives. This helps reduce the level of fatigue experienced by board members. In the past, I’ve been a part of situations in which urgent information was presented to boards right before they are expected to decide on it which could disrupt the decision-making process and derail the outcome.