The ability to make decisions in the boardroom requires a combination of open discussion and strategic analysis, as well as leveraging technology. When executed correctly these strategies can improve a board’s decision-making capacity and result in long-term sustainability for the company.
The first step is to gather all the information that is available and make sure it is reliable, complete, accurate and thorough. This is the management’s responsibility and involves gathering information from both internal and external sources. It also includes conducting research and making sure that the board is provided with timely, complete information.
Once the data is gathered, the next stage is to consider the possible options to solve the issue. This can be a long process, particularly when trying to reach a consensus. Some boards employ methods such as the Six Thinking Hats Method or Disney Planning Method in order to prevent groupthink and allow all options of ideas to be taken into consideration.
The board must decide on the best option to consider. This usually involves a variety of factors, including cost and impact. Scope can also be determined by the number of affected individuals (e.g. clients or employees). It is useful to have a matrix of delegated power that ties these requirements to the general guidelines for governance of the board for the important source https://boardmeetingtool.net/financing-mergers-a-guide-to-modern-methods/ organisation.
Once the decision is made the board must clearly communicate the decision in the minutes and detail how the decision was made. The minutes should include a reason for the decision and a list of the options that were considered, any advice requested and whether the criteria were satisfied.
Deja una respuesta