The ability to make decisions within the boardroom requires a combination of open discussion and strategic analysis as well as the use of technology. If executed properly these strategies can enhance a board’s decision making capacity and result in long-term sustainability for an organization.
The first step is gathering all information available and making sure that it additional reading about Financing Mergers is in-depth, accurate reliable, relevant, and complete. This is management’s responsibility and involves gathering data from internal and external sources, conducting research, and making sure that the board receives accurate, timely information.
After the data is collected, the next step is to identify the possible solutions that could resolve the issue. This can be a lengthy process, especially when trying to find consensus. Some boards use methods like the Six Thinking Hats Method or Disney Planning Method in order to avoid groupthink and promote an array of ideas of opinions to be taken into consideration.
Finally, the board must decide which option to take. This typically involves a number of factors, including cost impact, and the scope. Scope can be measured in terms of dollars, years or the number of people impacted (e.g. clients, clients or staff). It is helpful to have a matrix that ties these criteria in with the board’s overall governing principles for the company.
The board has to explain how it came to its decision in the minutes. The minutes should include a reason for the decision along with a list of possible options considered, any advice required and whether or not the requirements were in fact met.