When a board makes a decision, the objective is to ensure that it supports the organization’s long-term objectives and is based on facts. This includes obtaining data from a variety of sources, including survey results, reports from employees and competitor analysis, to support the decision. It is also crucial to weigh different options and determine which one is most likely to yield the desired result.
To make this happen, Board members should consider the extent to which a proposed plan of decision is in line with the mission and vision of the business and also consider any regulatory or legal requirements that might be involved. In addition, Board members should be aware of any potential risks associated with the decision, and ensure the board’s risk tolerance is considered in the process.
Boards may also benefit from strategies that are designed to prevent groupthink. This includes brainstorming, Six Thinking Hats (a method of avoiding groupthink), Disney Planning Method, and Delphi Technique. It can be beneficial to assign informal roles to certain Board members, for example “devil’s advocate”, to challenge others for their ideas and assist in generating several solutions.
Boards may also come up with a policy on the manner and time they wish to be informed about decisions that are coming up for vote. This allows them to take the time they need to examine and discuss the information prior to taking a vote, and it allows them to ask questions and consider alternative ideas. This method also helps to reduce board decision fatigue. I have witnessed situations where boards were provided with urgent information right before they were required to vote, which could hinder and disrupt the decision-making process.