When a board makes an announcement, the goal is to make sure that the decision supports the long-term https://boardmeetingtool.net/what-is-a-strategy-and-why-it-is-important-for-any-field goals of the company and is based on facts. That means gathering information from a variety of sources, such as reports from the industry, employee surveys or competitor analysis as well as other information points that support the decision. It is also essential to weigh different options and determine which one is most likely achieve the desired outcome.
Board members must be aware of the alignment of a proposed course with the vision and mission of the business, and also any legal or regulatory requirements. Board members should be aware of the risks that could be posed by making a decision and ensure the board’s risk-taking appetite is considered.
It is also beneficial for boards to employ methods that are designed to prevent groupthink, like brainstorming, Six Thinking Hats, Disney Planning Method and Delphi Technique. It’s helpful to assign informal roles to specific Board members, like « devil’s advocate » to challenge other Board members to think differently and come up with a variety of solutions.
Boards can also decide how and when to inform members about coming votes. This lets them spend the time needed to review and discuss the facts prior to taking a vote, and it allows them to ask questions and consider other options. This method helps to reduce the stress of board members. I have witnessed situations where boards were given urgent information just before they were required to vote, which could hinder and disrupt the decision-making process.