To make effective decisions in a boardroom, you must have a mix of open discussion, strategic analysis and technology. These strategies, when executed correctly, can dramatically improve a board’s ability to make a decision and lead to the long-term sustainability of an organization.

The first step is gathering all the information available and make sure it is reliable, complete, accurate and thorough. This is the management’s job and includes gathering information from both internal as well as external sources. It also includes conducting research and ensuring that the board receives timely and complete information.

After the data is collected, the next step is identifying the possibilities of solutions to solve the issue. This can be a long 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 also encourage the full range of options of ideas to be thought about.

The board must decide on the best option to pursue. This usually involves a variety of factors, including cost and impact. Scope can also be measured by the number of people affected (e.g. employees or clients). It is beneficial to have a list of delegated authority that connects these requirements to the overall guidelines of the board for the organisation.

The board must state how it came to its decision in the minutes. The document should include a rationale for the decision and a list of the options that were considered, any advice requested, and whether or not the criteria were in fact met.

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