When a board makes an important decision, the aim is to make sure it’s in line with the organization’s long-term goals and is rooted in evidence. That means gathering information from a variety of sources, such as survey results, industry reports, competitor analysis and other data points that help support the decision. It is also essential to evaluate different alternatives and determine which is most likely to yield the desired result.
Board members must be aware of the alignment of a proposed course with the company’s mission and vision as well as any legal or regulatory requirements. Board members should be aware of the potential risks that may be associated with a decision, and make sure that the board’s tolerance for risk is taken into consideration.
Boards are also able to benefit from strategies that are designed to avoid groupthink. These include brainstorming, Six Thinking Hats (a method to avoid groupthink), Disney Planning Method, and Delphi Technique. It can be helpful to assign informal roles to specific Board members, for example “devil’s advocate” to challenge other Board members’ ideas and help generate several solutions.
Boards can also decide on how and when to inform members of coming votes. This allows them to read and discuss information prior to deciding. They can also ask questions and come up with alternative solutions. This approach helps reduce the stress of board members. I have seen situations where boards were given urgent information prior to when they were expected to vote, which could delay and disrupt the decision-making process.
important source https://boardmeetingtool.net/financing-mergers-a-guide-to-modern-methods/
No Comments
Leave a comment Cancel