Board management decisions are based on a variety of information, whether it is finance, HR, governance or even strategic. This is particularly true for the more complex problems that boards be faced with with, like M&A and strategy decisions.
To comprehend the dangers and to form an opinion regarding the potential risks, these issues require a large amount of qualitative input. This level of detail needs to be carefully managed to avoid the decision-making process being slowed down or becoming time-consuming. Often these decisions can be addressed in more specific board meetings or even in a dedicated workshop, which will help to save time and energy for other strategic-level discussions that a board must participate in.
The right people must be present when the board https://boardmeetingtool.net/what-is-a-strategy-and-why-it-is-important-for-any-field debates an issue. The tendency of groupthink and boards to rubber stamp decisions can result in serious consequences. The best way to stop this is for boards to develop an effort to analyze every decision brought to them in order to determine if it really should be considered a decision at that level.
To do this it is important for boards to consider the different decision-making models that are available. They differ in their complexity, but each has strengths and weaknesses. An effective exercise for boards is to discuss the pros and pros of these frameworks with their management teams to decide which one is best for a specific task.