In today’s economic turmoil, Boards are dealing with a variety of challenges.
Among them are making decisions on complex issues with incomplete and ambiguous data. These decisions will impact the organisation’s performance in the future.
To overcome the obstacles, effective Boards should:
1. Ensure that the composition of the Board is as diverse as possible.
2. Calibrate (through questioning) the validity of information coming into the Board.
3. Encourage directors out of the board room to find out what is really going on in the business.
4. Use sub groups of experts to consider key decisions.
5. Ensure leader impartiality during the process of decision-making.
6. Bring in alternative and extreme viewpoints to Board discussions to promote diversity of opinion.
7. Encourage each Board Member to critically evaluate every decision.
8. Ensure that all members engage in a thorough search through all available options.
9. Conduct rigorous stakeholder analysis to understand the implications of big decisions.
10. Evaluate the Board and its members regularly to ensure that both it and they are fit for purpose.
Effective Board decision-making is, in the end, an output of effective teamwork. This encourages and develops team cohesiveness through a series of team building events. Learn more about effective decision-making processes by reading our Board Blog.