To make sound decisions in a boardroom you need a combination open discussion, strategic analysis, and technology. When executed correctly, these strategies can dramatically enhance a board’s decision making capability and ensure long-term sustainability for the company.

The first step is gathering all the information available and ensure that it is accurate, complete, credible, and in-depth. This is the responsibility of management and involves gathering data from internal and external sources, conducting research, and ensuring that the board is receiving timely, comprehensive information.

Once the data is gathered, the next step is to identify the possible options that could solve the issue. This can be a lengthy process, especially when trying to reach a consensus. Some boards employ methods like the Six Thinking Hats or Disney Planning Method to stop groupthink and to encourage all possible options to be taken into consideration.

The board has to then decide on the best option to pursue. This typically involves a range of factors, including cost and impact. Scope can be measured in terms of dollars, years or the number of people affected (e.g. clients, clients or employees). It is beneficial to have a framework of delegated authority that connects these requirements to the overall guidelines of the board for the organisation.

Once the decision is made, the board must clearly announce it in the minutes and provide a description of how the decision was reached. This should include a justification for the choice along with a list of possible options examined, any advice that was sought and whether the criteria were fulfilled.

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