Board Management Decision Making

Boards decide to make a lot of decisions — as well as the number is only getting greater. These are decisions with high-stakes, a lot of uncertainty and are generally not the type of thing you are able to delegate.

Suzanne Nimocks: I do believe it is very important for the purpose of the mother board to have a sturdy decision-making procedure that allows those to do the job they are paid to accomplish and help management teams produce good decisions. A good process will include things such as challenging the assumptions, playing devil’s advocate and helping management develop alternatives. It will likewise incorporate processes for avoiding groupthink (eg thinking, Six Thinking Hats, Disney Planning Technique etc).

This is helped with the usage of tools including RACI, and the board might have a formal method to decide which usually issues are appropriate for its source. It might also use the output from a board escape or the work of committees that have been requested with certain decisions, to be sure that the decision is the decided risk appetite and may be informed by all the advice they have received.

Leigh Weiss: I do believe the key is to consider a step backside from the certain decision you are facing and consider, on one hand, the scope of the potential impact (what’s at risk) and, alternatively, the level of assurance about whether it will happen. This helps you prioritize where you should spend time and ensure that the table is making a premium quality decision depending on the best info readily available.

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