How to Improve Board Management Decision Making

As a governance entity the board of directors makes strategic decisions based on unbiased data and creates the future for an enterprise. The board’s job is to guide the company’s direction and make decisions that are in line with the company’s mission, vision, and goals. A well-organized Board can be more than a rubber stamp.

The board’s decision-making ability can be significantly influenced by the way it is put together. Board members should have a range of abilities and experiences, so that when they talk about issues, they can take on new perspectives, which open up alternative pathways for the business. One of the best ways to achieve this is by encouraging diversity in the composition of the board. A lack of diversity in the boardroom can lead to a narrow view of the place of the business in the society and its optimal future direction.

Another way to improve the quality of board decisions is via the use of straw polls that aren’t legally binding. This method involves voting in a way that isn’t counted, and then explaining your vote. This can help encourage an enlightened discussion about the issue, and also better inform the final formal and binding vote.

Boards also can help reduce decision fatigue by restructuring the agenda so that they can place significant decisions early and the less important pro-forma items at the end of the meeting. This lets the board take its time and avoids the exhausting data room M&A effects of decision fatigue.

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