In order to make good decisions in a boardroom you must have a mix of open discussion, strategic analysis, and technology. These strategies, if implemented properly, can significantly enhance the board’s ability to make decisions and lead to the long-term viability of an business.

The first step is gathering all the information available and verify that it is reliable, complete and comprehensive. Management’s responsibility includes gathering data from internal and external sources, conducting research and making sure that the board is receiving current, comprehensive information.

Once the data has been gathered, the next stage is to find the potential solutions to the problem. This can be a long process, particularly when trying to reach a consensus. Certain boards employ methods like the Six Thinking Hats or Disney Planning Method to prevent groupthink and to encourage an array of possibilities to be thought about.

The board has to then decide on the best option to consider. This typically involves a number of factors, including cost and impact. Scope can also be measured by the number of affected people (e.g. clients or employees). It is helpful to have a matrix that ties these criteria in with the general governing principles that govern the organization.

The board has to explain the reasons for its decision in the minutes. This will include the reasons for the decision and a list of possible options, any advice sought and what criteria were in place or not met.

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